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
Sony Life Financial Data (Non-consolidated)
10 Balance Sheets
12 Statements of Income
15 Statements of Changes in Net Assets
17 Statements of Cash Flows
18 1. Loans by Borrower Category
18 2. Risk-monitored Loans
18 3. Accounting Indicators
23 4. Reconciliation to Core Profit andNon-consolidated Ordinary Profit
25 5. Fair Value Information on Securities(General Account)
30 6. Fair Value Information on Securities(Company Total)
Performance Indicators of Sony Life (Non-consolidated)
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)
54 5. Status of Insurance Claims Paying Ability
55 6. Balance of Separate Account Assets
55 7. Status of Individual Variable Life Insurance andIndividual Variable Annuities
56 8. Number of Agencies
56 9. Number of Employees and Recruits
57 10. Average Salary
37
38
45
46

58 Balance Sheets
60 Statements of Income
61 Statements of Changes in Net Assets
62 Statements of Cash Flows
63 1. Loans by Borrower Category
63 2. Risk-monitored Loans
63 3. Assets and Liabilities
66 4. Profit and Loss
67 5. Fair Value Information, etc.
Performance Indicators of Sony Assurance
68
68
70
72

1. Principal Indicators of Operating Performance
2. Underwriting Performance
3. Asset Management
4. Non-consolidated Solvency Margin Ratio

Sony Bank Financial Data (Consolidated)
74 Consolidated Balance Sheets
76 Consolidated Statements of Income
76 Consolidated Statements of Comprehensive Income
77 Consolidated Statements of Changes in Net Assets
79 Consolidated Statements of Cash Flows
Sony Bank Financial Data (Non-consolidated)
80 Balance Sheets
82 Statements of Income
83 Statements of Changes in Net Assets
85 1. Loans by Borrower Category
85 2. Risk-monitored Loans
85 3. Profit and Loss
88 4. Fair Value Information
Performance Indicators of Sony Bank (Non-consolidated)
93
93
94
96

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

MCEV Results for Sony Life
98
103
107
110
112
The Financial Data Book is only
disclosed on the website of SFH.
The Annual Report is alsoavailable on the website of SFH.

Annual Report
http://www.sonyfh.co.jp/en/financial_info/annualreport

1. MCEV Results
2. Assumptions
3. Calculation Method of MCEV
4. Overview of MCEV
5. Glossary of MCEV-related Terminology

SFH

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

Ordinary revenues

2011

2012

2013

2014

2015

¥1,352,325¥1,002,201¥1,078,070¥1,259,041¥1,320,456

Ordinary profit

76,86074,62579,252

76,13690,062

Net income

41,71632,81245,06440,50454,419Comprehensive income

31,96360,37696,22544,79490,707

Total net assets

294,877

347,800

435,444467,050

550,672

6,597,140

7,241,414

8,096,164

8,841,382

9,545,868

Net assets per share (yen)677.88796.64997.94

1,070.75

1,262.94

Net income per share (yen)

95.90

75.43

103.6093.11

125.10Total assets

Diluted net income per share (yen)

̶

̶

̶

̶

̶

Cash flows from operating activities

527,582

524,264

580,882

601,738

425,656

Cash flows from investing activities(559,771)(512,198)(550,159)(549,346)(445,431)

Cash flows from financing activities(6,560)

1,782(5,017)(13,522)(13,087)

161,803

175,651

201,404

240,279

207,422

7,181

7,485

7,841

8,150

8,448

Cash and cash equivalents at the end of the period
Number of employees

Notes: 1. Diluted net income per share is not shown because there are no latent shares.
2. SFH conducted a 200-for-1 stock split of its common shares, with an effective date of April 1, 2011. Net assets per share and net income per share
were calculated assuming that this stock split was conducted on April 1, 2010.
3. The banking business revised its method of recording ordinary revenues and ordinary expenses on hedge transactions in the year ended March 31,
2015. Ordinary revenues for the year ended March 31, 2014 (actual), have been retroactively adjusted to reflect the change. Consequently, consolidated ordinary revenues have been revised from ¥1,319,766 million to ¥1,320,456 million. This adjustment to ordinary revenues was accompanied byan adjustment to ordinary expenses in the same amount, on a consolidated basis for Sony Financial Holdings, and therefore, ordinary profit and net
income were unaffected.
(%)

For the years ended March 31,

2011

2012

2013

2014

2015

Sony Life’s adjusted ROE(3.8%)

14.1%

3.3%

14.9%

9.6%

Sony Assurance’s adjusted ROE

5.5

(1.2)

(0.1)

9.8

14.2

Sony Bank’s ROE

2.7

2.9

4.3

4.8

6.0

Consolidated adjusted ROE(3.1%)

13.1%

3.3%

14.2%

9.5%

Each ROE is calculated as follows:
Sony Life’s adjusted ROE
The amount of increase in market consistent embedded value (MCEV)* during the fiscal year plus 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 Assurance’s adjusted ROE
Net income (loss) plus 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 Bank’s ROE
Net income (loss)
The average amount of net assets during the fiscal year
Consolidated adjusted ROE for fiscal 2014
Consolidated adjusted ROE = Consolidated adjusted profit divided by consolidated adjusted capitalSony Life: The amount of increase in MCEV* during the fiscal year plus dividends paid
+ 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: Net income (loss)
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
* Sony Life discloses Market Consistent Embedded Value (“MCEV”). Sony Life’s 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 20151

SFH Consolidated Financial Statements

Consolidated Balance Sheets
Sony Financial Holdings Inc.
As of March 31, 2014 and 2015

(Millions of yen)

2014

2015

Cash and due from banks¥ 204,546¥ 134,803

Call loans and bills bought

40,62877,234

Monetary trusts

325,831

336,842

Securities

6,822,151

7,377,545

Loans

1,211,638

1,349,586

71,565123,083Land

30,10383,007

Buildings

37,03035,323

Leased assets

106

74

Construction in progress

947

1,666

Other tangible fixed assets

3,376

3,010

36,77433,366

Software36,571

33,245

Goodwill

179

99

Other intangible fixed assets

24

21

Due from reinsurers

158

297

Foreign exchanges

7,752

2,224

100,503102,756

Net defined benefit asset

1,730

3,005

Deferred tax assets

19,872

6,545

Reserve for possible loan losses(1,769)(1,422)¥8,841,382¥9,545,868

AssetsTangible fixed assets

Intangible fixed assets

Other assets

Total Assets

2

Sony Financial Holdings Inc. Financial Data Book 2015

SFH Consolidated Financial Statements(Millions of yen)

2014

2015

¥6,263,315¥6,879,055

Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends

57,40061,1146,201,676

6,813,749

4,237

4,191

Due to agencies

2,169

2,450

Due to reinsurers

650

675

1,889,970

1,872,860

Deposits
Call money and bills sold

6,000

6,000

Borrowed money

20,00020,000Foreign exchanges

40

46

Bonds payable

20,00020,000

Other liabilities

95,725

122,340

Reserve for employees’ bonuses

3,204

3,395

Net defined benefit liability

30,272

24,558250

338

41,65742,96941,65742,969Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Deferred tax liabilities539

̶

Deferred tax liabilities on land revaluation

536

503

8,374,332

8,995,195

Total Liabilities
Net Assets
Shareholders’ equity
Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

164,790

212,124(0)(0)

379,967

427,301

Net unrealized gains (losses) on other securities, net of taxes

92,002

127,166

Net deferred gains (losses) on hedging instruments, net of taxes(2,388)(2,086)

Land revaluation, net of taxes(1,513)(1,480)Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income

Foreign currency translation adjustments

00Remeasurements of defined benefit plans, net of taxes(2,292)(1,522)

Total accumulated other comprehensive income

85,807122,078

Minority interests

1,275

1,292

Total Net Assets

467,050

550,672¥8,841,382¥9,545,868

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 20153

SFH Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Sony Financial Holdings Inc.
For the years ended March 31, 2014 and 2015

(1) Consolidated Statements of Income
Ordinary Revenues
Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions(Millions of yen)

2014

2015

¥1,320,456¥1,352,325

1,194,315

1,221,077

959,911912,605

958,585

911,068

1,325

1,537

211,829

279,691

Interest income and dividends

121,666

133,135

Income from monetary trusts, net

5,311

5,283

Investment income

Gains on trading securities̶

507

Gains on sale of securities

773

8,899

Gains on redemption of securities

2

1

172

̶

Foreign exchange gains, net

1,183

5,068

Other investment income

47

7

82,670126,789

22,57528,78089,86393,022

88,63991,761

88,60091,712

39

48

Gains on derivatives, net

Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Other underwriting income
Investment income
Interest income and dividends
Gains on sale of securities
Gains on redemption of securities
Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

̶

0

1,199

1,235

1,209

1,268

25

15

3

̶

(39)

(48)

24

25

36,27738,224

26,32826,132

Interest income on loans

14,134

14,070Interest income and dividends on securities

12,077

11,960Interest income on call loans and bills boughtInterest income on deposits with banks

8

7

107

93

Other interest income

00Fees and commissions

4,928

5,880

Other operating income

4,864

5,997

Gains on foreign exchange transactions, net

2,782

3,906

Others

2,082

2,090

155

213

Other ordinary income(Continued on next page)

4

Sony Financial Holdings Inc. Financial Data Book 2015

SFH Consolidated Financial Statements(Millions of yen)

2014

2015

¥1,244,319¥1,262,262

1,128,787

1,145,087

327,257

382,902

Insurance claims

77,413

79,622

Annuity payments

10,768

11,280Insurance benefits

55,51063,166

Surrender payments

178,402223,130

3,203

3,675

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 policyholders’ dividends

1,959

2,027

650,764

604,35755

746

650,703603,607

5

3

8,182

9,439

Interest expenses

48

31

Losses on sale of securities

528

0

Investment expenses

Losses on redemption of securities

̶0

Losses on derivatives, net

̶

2,099

Provision for reserve for possible loan losses

632

Depreciation of real estate for rent and others

1,952

1,833

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

5,646

5,441

113,442

115,237

29,14033,14986,18988,115

Underwriting expenses

65,03065,206Net losses paid

46,18345,985

Loss adjustment expenses

6,367

6,857

Net commission and brokerage fees

948

929

Provision for reserve for outstanding losses

4,098

2,966

Provision for underwriting reserves

7,433

8,465

0

0

Other underwriting expenses
Investment expenses
Losses on sale of securities
Losses on redemption of securities
Operating, general and administrative expenses
Other ordinary expenses

7

1

5

1

2

̶

21,15022,9000

7(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2015

5

SFH Consolidated Financial Statements

Consolidated Statements of Income (Continued)
Ordinary Expenses from the Banking Business(Millions of yen)

2014

2015

¥ 29,343¥ 29,060

Interest expenses
Interest expenses on deposits

8,964

9,407

4,905

5,012

Interest expenses on call money and bills sold6

6

Interest on borrowed money

26

22

Interest expenses on bonds
Interest expenses on interest rate swaps

119

97

3,905

4,268

0

0

Fees and commissions

Other interest expenses

1,735

1,948

Other operating expenses

1,424

135

General and administrative expenses

16,92017,517

Other ordinary expenses

298

50

Ordinary Profit

76,13690,062Extraordinary Losses

9,508

1,927

Losses on disposal of fixed assets

137

511

Impairment losses

36

71

9,312

1,311

9,312

1,311

Losses on transfer of business̶

32

Others20

̶Provision for Reserve for Policyholders’ Dividends

2,232

2,153

Income Before Income Taxes

64,39685,981
32,207

Provision for special reserves
Provision for reserve for price fluctuations

Income Taxes̶Current

26,451

Income Taxes̶Deferred(2,517)(668)

Total Income Taxes

23,93331,538

Income Before Minority Interests

40,46254,442

Minority Interests in Income (Loss)Net Income

(42)

23

¥ 40,504¥ 54,419

Note: Please refer to Note 3 on page 1 for ordinary revenues for the year ended March 31, 2014.

(2) Consolidated Statements of Comprehensive Income(Millions of yen)

2014

2015

¥40,462¥54,442Net unrealized gains (losses) on other securities, net of taxes

3,672

35,164

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

659

302

Land revaluation, net of taxes̶

33

Foreign currency translation adjustments

01

Remeasurements of defined benefit plans, net of taxes

̶

762

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

00Income Before Minority Interests
Other Comprehensive Income

Total other comprehensive income

4,332

36,264¥44,794¥90,707

Comprehensive income attributable to parent company¥44,837¥90,690

Comprehensive income attributable to minority interests¥¥

Comprehensive Income
Details:

6

Sony Financial Holdings Inc. Financial Data Book 2015

(42)

16

SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Sony Financial Holdings Inc.
For the years ended March 31, 2014 and 2015
(Millions of yen)

2014
Shareholders Equity
Total
shareholders’equityCommonstock

CapitalsurplusRetainedearnings¥19,900¥195,277¥135,160¥̶

¥350,337

Dividends from surplus̶̶

(10,875)̶

(10,875)

Net income̶̶

40,504

̶

40,504Purchase of treasury stock

̶

̶

̶

(0)

(0)

Net changes of items other than shareholders’ equity

̶

̶

̶

̶

̶

Total changes during the period̶̶

29,629(0)

29,629Balance at the end of the period¥19,900¥195,277¥164,790¥ (0)¥379,967

Balance at the beginning of the period

Treasurystock

Changes during the period(Millions of yen)

2014
Accumulated Other Comprehensive Income
Net unrealized
gains (losses)
on othersecurities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes¥88,329¥(3,047)¥(1,513)¥̶Dividends from surplus

̶

̶

̶

Net income

̶

̶

̶

Purchase of treasury stock̶̶

Net changes of items otherthan shareholders’ equity

3,672

Total changes during
the period
Balance at the end of
the period

Balance at the beginning of
the period

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income̶¥83,767¥1,339¥435,444

̶

̶

̶

̶

(10,875)

̶

̶

̶

̶

40,504

̶

̶

̶

̶

̶

(0)

659

̶

0

(2,292)

2,039

(64)

1,975

3,672

659

̶

0

(2,292)

2,039

(64)

31,605¥92,002¥(2,388)¥(1,513)¥0¥(2,292)¥85,807¥1,275¥467,050

Land
revaluation,
net of taxes

Foreigncurrencytranslation
adjustments¥

Minority
Interests

Total Net
AssetsChanges during the period(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 20157

SFH Consolidated Financial Statements

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

2015
Shareholders Equity
CapitalsurplusRetainedearnings¥19,900¥195,277¥164,790

¥(0)

̶

̶

5,965

̶

5,965

19,900195,277

170,755(0)385,932

Dividends from surplus̶̶

(13,049)

̶

(13,049)

Net income̶̶54,419

̶

54,419Purchase of treasury stock

̶

̶

̶

(0)

(0)

Net changes of items other than shareholders’ equity

Balance at the beginning of the period
Cumulative effects of changes in accounting policies
Restated balance at the beginning of the period

Treasury
stock

Total
shareholders’equityCommonstock¥379,967

Changes during the period

̶

̶

̶

̶

̶

Total changes during the period̶̶

41,369(0)41,369Balance at the end of the period¥19,900¥195,277¥212,124¥(0)¥427,301(Millions of yen)

2015
Accumulated Other Comprehensive Income
Net unrealized
gains (losses)
on othersecurities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes

Balance at the beginning of
the period¥ 92,002

Cumulative effects ofchanges in accounting
policies
Restated balance at the
beginning of the periodLand
revaluation,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income¥(2,388)¥(1,513)¥0¥(2,292)¥ 85,807¥1,275¥467,050

̶

̶

̶

̶

̶

̶

̶

5,965

92,002(2,388)(1,513)0(2,292)85,8071,275

473,015

Minority
Interests

Total Net
AssetsChanges during the period

8

Dividends from surplus

̶

̶

̶

̶

̶

̶

̶

(13,049)

Net income

̶

̶

̶

̶

̶

̶

̶

54,419Purchase of treasury stock

̶

̶

̶

̶

̶

̶

̶

(0)

Net changes of items otherthan shareholders’ equity

35,164

302

33

0

769

36,27016

36,287

Total changes during
the period

35,164

302

33

0

769

36,27016

77,657

Balance at the end of
the period¥127,166¥(2,086)¥(1,480)¥ 0¥(1,522)¥122,078¥1,292¥550,672

Sony Financial Holdings Inc. Financial Data Book 2015

SFH Consolidated Financial Statements

Consolidated Statements of Cash Flows
Sony Financial Holdings Inc.
For the years ended March 31, 2014 and 2015

(Millions of yen)

Cash flows from operating activities
Income before income taxes
Depreciation of real estate for rent and others
Depreciation and amortization
Impairment losses
Amortization of goodwill
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
Increase in interest portion of reserve for policyholders’ dividends
Increase (decrease) in reserve for policyholders’ dividends
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for directors’ retirement benefits
Increase (decrease) in reserve for price fluctuations
Interest income and dividends
Gains (losses) on securities
Interest expenses
Exchange (gains) losses(Gains) losses on disposal of tangible fixed assets
Equity in (gains) losses of affiliates
Net (increase) decrease in loans
Net increase (decrease) in deposits
Net increase (decrease) in borrowed money (excluding subordinated borrowings)
Net (increase) decrease in call loans and bills bought
Net increase (decrease) in call money and bills soldNet (increase) decrease in foreign exchange (assets)
Net increase (decrease) in foreign exchange (liabilities)
Others, net
SubtotalInterest and dividends received
Interest paid
Policyholders’ dividends paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Investments in monetary trusts
Proceeds from sale of monetary trusts
Purchases of securities
Proceeds from sale and redemption of securities
Investments in loans
Collections of loans
OthersTotal 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 sale of tangible fixed assets
Purchases of intangible fixed assets
Purchase of securities of a subsidiary
Purchase of securities of affiliates
OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Cash dividends paid
Net decrease in subordinated borrowings
Purchase of treasury stock
Balance from securitization of lease receivables
OthersNet 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

2014

2015

¥ 64,396
1,952
9,147
36
79
4,153
658,136
5
2,232
(108)
2,865
(161)
9,312
(149,204)(74,996)
9,012(30,559)
146
1,538(87,193)
33,55920,0004,000(4,000)
202
(47)
7,078
481,587
160,737(9,178)(2,273)(29,134)
601,738¥ 85,981
1,833
9,686
71
79
3,713
612,072
3
2,153
(116)
2,954
88
1,311
(160,536)(134,394)
9,438(32,341)42
1,506(129,767)(16,093)(2,301)
5,100(990,899)
480,946(54,102)25,405(3,081)5,300(943,359)
588,936(54,199)
24,618(1,626)(383,413)
42,243(54,563)̶(535,850)
65,887(3,326)
2,021(7,707)(1,058)(3,500)75(549,346)(10,878)(2,000)
(0)
(600)
(43)
(13,522)5
38,875
201,404¥ 240,279

̶
̶
̶

5,528
6
27,714
290,938
172,736(9,117)(2,202)(26,698)
425,656

̶

(4,712)(1,000)(2,500)758(445,431)(13,050)
̶

(0)

̶

(36)
(13,087)4(32,857)
240,279¥ 207,422

Notes: 1. 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.
2. Following a change in accounting procedures in the year ended March 31, 2015, with respect to hedging transactions in the banking business,
SFH reclassified ¥2,678 million of interest expenses, negative ¥2,713 million of interest paid, and ¥34 million of others, net in the cash flows fromoperating activities section for the year ended March 31, 2014.

Sony Financial Holdings Inc. Financial Data Book 20159

Sony Life

Financial Data (Non-consolidated)
Balance Sheets

Sony Life Insurance Co., Ltd.
As of March 31, 2014 and 2015
(Millions of yen, %)2014
Amount2015
Composition

AmountComposition

Assets:Cash and depositsCash¥15,8270.2%¥

16,5354

1

Deposits

15,823

16,534

Call loans

34,628

Monetary trusts
Securities
Japanese government bonds

0.5

71,234

305,346

4.6

313,276

4.3

89.9

6,543,703

89.6

5,316,110

5,742,140

3,869

2,060

Japanese corporate bonds

38,746

28,664

Japanese stocks

70,442

92,564Foreign securities

342,187

451,613

Other securities

183,359

Policy loans

154,219

226,659
2.3

162,399

154,180

162,397

Commercial loans

38

2

Tangible fixed assets

67,1001.0

118,232Land

30,10383,007

Buildings

36,42934,757

19

15

Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivables

548
23,86923,85921,590

9

9
0.0

181

0.0

53,787

0.8

58,5210.8

30,95433,791

1,532

1,220
17,059

Money on deposits

4,182

4,061

Initial margins of futures markets

̶813

Variation margins of futures markets

̶

867

̶

248

400

373

Others0.3

138

16,600Prepaid pension costs

1.6

21,580Accrued income

Advance payments

2.2

452
0.4

Prepaid expenses

Derivatives

1.0

5,954,716

Japanese municipal bonds

Loans

0.2%

117

85
0.0

2,295

0.0

13,6430.2

̶̶

Reserve for possible loan losses

(242)

(0.0)

(268)

(0.0)

Reserve for investment losses̶̶

(6,352)(0.1)¥7,301,350

100.0%

Deferred tax assets

Total Assets

10 Sony Financial Holdings Inc. Financial Data Book 2015

1,867

¥6,624,903

100.0%

Sony Life Financial Data (Non-consolidated)(Millions of yen, %)

2014

2015

AmountComposition

AmountComposition¥6,152,574

92.9%¥6,756,882

92.5%

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends
Due to agencies

24,70225,4496,123,633

6,727,241

4,237

4,191

2,169

0.0

Due to reinsurers

567

Other liabilities

32,812

Accrued income tax

2,450

0.0

0.0

585

0.0

0.5

45,6190.6

8,702

16,742Other payables

1,213

1,412

Accrued expenses

13,566

15,399Unearned income

939

953

Deposits received

823

1,783

5,058

5,076

̶

728

Deposits received for guarantee
Derivative liabilities
Lease obligations

21

16

Asset retirement obligations

654

665

Policy suspense and other suspense

1,832

Reserve for employees’ retirement benefits

25,389Reserve for directors’ retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation

2,842
0.4

19,725

0.3

66

0.0

91

0.0

41,5560.6

42,845

0.6

41,556
̶

42,845
̶

120

0.0

536

0.0

503

0.0

6,255,673

94.4

6,868,824

94.1

Common stock

70,0001.1

70,000

1.0

Capital surplus

5,865

0.1

5,865

0.1

3.2

240,028

Total Liabilities
Net Assets:

Capital reserve

5,865

Retained earnings

211,461

5,865

Earned reserve

18,13822,128Other retained earnings

193,323

217,900

Unappropriated retained earnings

193,323

Total shareholders’ equity

287,327

Net unrealized gains (losses) on other securities, net of taxes
Land revaluation, net of taxes

3.3

217,900
4.3

315,893

83,416

1.3

118,113

1.6(1,513)(0.0)(1,480)

(0.0)

4.3

Total valuation and translation adjustments

81,903

1.2

116,632

1.6

Total Net Assets

369,230

5.6

432,526

5.9¥6,624,903

100.0%¥7,301,350

100.0%

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2015 11

Sony Life Financial Data (Non-consolidated)

Statements of Income

Sony Life Insurance Co., Ltd.
For the years ended March 31, 2014 and 2015
(Millions of yen)

Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities

2014

2015

¥1,197,109¥1,223,827

960,986

914,034

959,660

912,497

1,325

1,537

212,323

280,148

122,160

133,5920

0

106,187

117,276

Interest income from loans

5,691

5,921

Rent revenue from real estate

10,250

10,327

Other interest income and dividends
Income from monetary trusts, net

31

66

5,311

5,283

Gains on trading securities̶

507

Gains on sale of securities

773

8,899

Gains on redemption of securities

2

1

172

̶

Foreign exchange gains, net

1,183

5,068

Other investment income

47

7

82,670126,789

23,79929,644

Gains on derivatives, net

Gains on separate accounts, net
Other ordinary income
Income for annuity riders

2,151

3,617

Income for deferred payment of claims

17,19722,154

Other ordinary income

4,451

3,872

(Continued on next page)

12 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)(Millions of yen)

2014

2015

¥1,127,904¥1,144,162

327,257

382,902

Insurance claims

77,413

79,622

Annuity payments

10,768

11,280Ordinary Expenses
Insurance claims and other payments

Insurance benefits

55,51063,166

Surrender payments

178,402223,130

Refund to policyholders

3,203

3,675

Reinsurance premiums

1,959

2,027

650,764

604,357

Provision for policy reserves and others
Provision for reserve for outstanding claims

55

746

650,703603,6075

3

Investment expenses

8,506

9,727

Interest expenses

48

31

Losses on sale of securities

528

0

Losses on redemption of securities

̶0

Losses on derivatives, net

̶

2,099

Provision for reserve for possible loan losses

632

Depreciation of real estate for rent and others

2,077

1,931

Provision for policy reserves
Interest on policyholders’ dividend reserve

5,845

5,630

Operating expenses

Other investment expenses

113,868

115,603

Other ordinary expenses

27,507

31,571

Payments of deferred claims

10,884

12,184

Taxes

7,981

10,571

Depreciation and amortization

5,064

5,267

Provision for reserve for employees’ retirement benefits

3,532

3,523

̶

24

Provision for reserve for directors’ retirement benefits
OthersOrdinary Profit

44

069,20579,665(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2015 13

Sony Life Financial Data (Non-consolidated)

Statements of Income (Continued)(Millions of yen)

2014

Extraordinary Losses

2015¥ 9,389¥ 7,683

Losses on disposal of fixed assets

41

31

Impairment losses

36

10

9,291

1,288

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations

9,291

1,288

Provision for reserve for investment losses

̶

6,352

19

̶

Provision for Reserve for Policyholders’ Dividends

2,232

2,153

Income Before Income Taxes

57,58369,828

Income Taxes̶Current

21,95327,055

Income Taxes̶Deferred(1,433)247

Total Income Taxes

20,51927,303Net Income¥37,063¥42,524

Others14 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014
Shareholders’ Equity
Capital surplus

Retained earnings
Otherretainedearnings

Balance at the beginning of the period

Commonstock

Capitalreserve

Total
capitalsurplus

Earnedreserve

Unappropriated retained
earnings

Total
retainedearnings

Total
shareholders’equity¥70,000¥5,865¥5,865¥15,478¥172,219¥187,698¥263,563

Changes during the period
Dividends from surplus

̶

̶

̶

2,660

(15,960)(13,300)(13,300)

Net income

̶

̶

̶

̶

37,06337,06337,063

Net changes of items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

2,660

21,10323,76323,763

Balance at the end of the period¥70,000¥5,865¥5,865¥18,138¥193,323¥211,461¥287,327(Millions of yen)

2014
Valuation and Translation Adjustments

Balance at the beginning of the period

Net unrealized
gains (losses)
on othersecurities,
net of taxes

Landrevaluation,
net of taxes

Totalvaluation andtranslation
adjustments

Total
Net Assets¥80,283¥(1,513)¥78,769¥342,333

̶̶̶

(13,300)
37,063

Changes during the period
Dividends from surplus

̶

̶

̶

3,133

̶

3,133

3,133

Total changes during the period

3,133

̶

3,133

26,897

Balance at the end of the period¥83,416¥(1,513)¥81,903¥369,230

Net income
Net changes of items other than shareholders’ equity(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2015 15

Sony Life Financial Data (Non-consolidated)

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

2015
Shareholders’ Equity
Capital surplus

Retained earnings
Otherretainedearnings

Commonstock

Capitalreserve

Total
capitalsurplus

Earnedreserve

Unappropriated retained
earnings

Total
retainedearnings

Total
shareholders’equity¥70,000¥5,865¥5,865¥18,138¥193,323¥211,461¥287,327

̶

̶

̶

̶

5,991

5,991

5,991

70,000

5,865

5,865

18,138199,315

217,453

293,318

Balance at the beginning of the period
Cumulative effects of changes inaccounting policies
Restated balance at the beginning of
the period
Changes during the period
Dividends from surplus

̶

̶

̶

3,990

(23,940)(19,950)(19,950)

Net income

̶

̶

̶

̶

42,52442,52442,524

Net changes of items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

3,990

18,584

22,574

22,574

Balance at the end of the period¥70,000¥5,865¥5,865¥22,128¥217,900¥240,028¥315,893(Millions of yen)

2015
Valuation and Translation Adjustments
Net unrealized
gains (losses)
on othersecurities,
net of taxes

Landrevaluation,
net of taxes

Totalvaluation andtranslation
adjustments

Total
Net Assets¥ 83,416¥(1,513)¥ 81,903¥369,230

̶

̶

̶

5,991

83,416(1,513)

81,903375,221

Dividends from surplus

̶

̶

̶

(19,950)

Net income

̶

̶

̶

42,524

Balance at the beginning of the period
Cumulative effects of changes in accounting policies
Restated balance at the beginning of the period
Changes during the period

Net changes of items other than shareholders’ equity

34,69633

34,72934,729Total changes during the period

34,69633

34,72957,304

Balance at the end of the period¥118,113¥(1,480)¥116,632¥432,526

16 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)

Statements of Cash Flows
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2014 and 2015

(Millions of yen)

Cash flows from operating activities
Income before income taxes
Depreciation of real estate for rent and others
Depreciation and amortization
Impairment losses
Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserves
Increase in interest of reserve for policyholders’ dividends
Increase (decrease) in reserve for policyholders’ dividends
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in reserve for investment losses
Increase (decrease) in reserve for employees’ retirement benefits
Increase (decrease) in reserve for directors’ retirement benefits
Increase (decrease) in reserve for price fluctuations
Interest income and dividends(Gains) losses on securities
Interest expenses
Foreign exchange (gains) losses(Gains) losses on disposal of tangible fixed assets(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
Policyholders’ dividends paid
Others, net
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sale of monetary trusts
Purchases of securities
Proceeds from sale and redemption of securities
Investments in loans
Proceeds from collections of loans
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 sale of tangible fixed assets
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

2014

2015

¥ 57,583
2,077
5,064
36
55
650,703
52,232
6¥ 69,828
1,931
5,267
10
746
603,607
3
2,153
26
6,352
2,716
24
1,288
(133,592)(127,440)31(5,068)31(42)
17,717281
18
3,802(6,276)443,418
142,216(31)(2,202)(5,103)(19,015)559,281

̶

2,645
(104)
9,291
(122,160)(77,861)48(1,183)40(37)
18,143(262)
20(9,774)(4,722)531,845
129,633(48)(2,273)(5,392)(28,837)
624,926
5,100(770,519)
113,909(54,102)25,405
̶

(680,205)[(55,279)]
(682)
2,021
(3,500)(3,255)(685,622)(13,300)(12)(13,312)2(74,006)
124,461¥ 50,455

5,300(671,343)
253,267(54,199)
24,618(1,626)(443,983)[115,297](53,227)
̶

(2,500)(2,301)(502,013)(19,950)(4)(19,954)037,31450,455¥ 87,769

Sony Financial Holdings Inc. Financial Data Book 2015 17

Sony Life Financial Data (Non-consolidated)

1 Loans by Borrower Category(Millions of yen)

As of March 31,

Bankrupt and quasi-bankrupt loans

2014

2015
̶

¥

̶

¥

Doubtful loans̶̶Sub-standard loans̶̶

Subtotal̶̶[% to total]

[̶]

[̶]

Normal loans

156,815

165,075

Total¥156,815¥165,075

Notes: 1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization, rehabilitation or other similar
proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated financial condition and results ofoperations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interest are past due for three months or more (excluding loans described in notes 1. and 2.
above) and loans on which terms and conditions have been amended in favor of the borrowers (e.g. reduction of the original interest rate, deferral ofinterest payments, extension of principal repayments or debt waiver) in order to support the borrowers’ recovery from financial difficulties (excludingloans described in notes 1. and 2. above and loans on which principal and/or interest are past due for three months or more).
4. Normal loans are all other loans.

2 Risk-monitored Loans
Not applicable

3 Accounting Indicators
3- 01 Reserve for outstanding claims(Millions of yen)

As of March 31,

2014

2015

¥ 6,702¥ 6,702

Insurance claims
Death benefits
Accidental benefits

595

220

Disability payments

1,405

1,729

Maturity benefits

1,272

971

Others

1,556

1,672

Subtotal

11,532

11,296

Annuity payments

163

229

Insurance benefits

5,323

5,698

Surrender payments

7,437

7,975

Deferred insurance benefits
Total, including others

18 Sony Financial Holdings Inc. Financial Data Book 2015

134

107

¥24,702¥25,449

Sony Life Financial Data (Non-consolidated)

3- 02 Policy reserves(Millions of yen)

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

2014

2015

¥5,840,272
5,257,428
582,844
164,451
115,818
48,63241
41¥6,438,959
5,728,223
710,735
202,337
131,816
70,52126
26

55,19655,196

17,21017,2106,059,962
5,428,484
631,477
63,671¥6,123,633¥5,492,156
631,477

6,658,533
5,877,276
781,256
68,707¥6,727,241¥5,945,984
781,256

̶

̶
̶
̶
̶

3- 03 Breakdown of policy reserves

̶

̶
̶
̶
̶

(Millions of yen)

As of March 31,

Premium reserve
Unearned premiums
Refund reserve
Contingency reserve
Total

2014

2015

¥5,859,446
200,515¥6,454,413
204,119

63,671¥6,123,633

68,707¥6,727,241̶̶

3- 04 Policy reserve calculation methods, ratios, and balance involving individual life 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 company’s policy reserves(excluding contingency reserve)” to “policy reserves
required by regulatory standards”

2014

2015

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 calculating methods and ratios are set for individual life insurance and individual annuities. The concept of accumulation method is not targeted atpolicy reserves for group life insurance and group annuities, so these insurance policies are not included.
2. The above ratios indicate the amounts of the company’s policy reserves (excluding contingency reserve) to the required premium reserves andunearned premiums calculated by (a) the method laid down in the Ministry of Finance Public Notice No. 48 of 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 company’s policy reserves include policy reserves additionally reserved to maintain the future soundness of certain policies.

Sony Financial Holdings Inc. Financial Data Book 2015 19

Sony Life Financial Data (Non-consolidated)

Balance of policy reserves by contract year
(Millions of yen, %)Fiscal year issued

Balance of policy reserves

Up to FY1980
FY1981 to FY1985
FY1986 to FY1990
FY1991 to FY1995
FY1996 to FY2000
FY2001 to FY2005
FY2006 to FY2010
FY2011FY2012FY2013
FY2014

Assumed interest rate

̶

¥

̶%
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

32,45452,531
553,252
1,180,300
1,376,541
1,517,284
317,060
341,829
315,932
172,851

Notes: 1. The balance of policy reserves shows the total of those for individual life insurance and individual annuities, excluding those of separate account assets
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 general accounts related

to policies with minimum guarantees which insurance policies are invested in separate
accounts

Balance of policy reserves (general account)(Millions of yen)

As of March 31,

Balance of policy reserves (general account)

2014

2015

¥35,270¥45,902

Notes: 1. Calculations employed in the table above apply to the insurance policies subject to the standard policy reserve method provided for under 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 show the total of premium reserve related to minimum guarantees and unearned
premiums.

Calculating method and coefficient

1. Policy reserves related to minimum guarantees are calculated using the standard policy reserve method based on the Ministry of FinancePublic Notice No. 48 of 1996 “Comprehensive Supervisory Guidelines for Insurance Companies (II-2-1-3-1).”
2. Coefficients used in the calculations are stipulated in Article 9, Paragraph 1-2 of the above Public Notice. The assumed surrender rates
consist of an annual rate of 5.0% during the payment of premiums, and an annual rate of 3.0% after the payment of premiums.

3- 06 Reserve for policyholders’ dividends(Millions of yen)

2014

For the year ended March 31,

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

Individual life
insurance¥ 1,938
5
132
(27)
1,783
[1,412]

Individual
annuities

¥ 241
0
29
14
226
[131]

Group life
insuranceGroupannuities¥2,064
0
2,083
2,178
2,160
[0]

¥28

̶

28
67
67
[̶]

Asset-formation
insurance,
asset-formation
annuities

¥̶

̶
̶
̶
̶
[̶]

Others

¥̶

̶
̶
̶
̶
[̶]

Total

¥ 4,273
5
2,273
2,232
4,237
[1,544](Millions of yen)

2015

For the year ended March 31,

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

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥ 1,783
2
103
110
1,794
[1,545]

¥ 226
0
32
36
230
[157]

¥2,160

¥ 67

2,043
2,015
2,133
[0]

23
(10)
33
[̶]

Note: Figures in [ ] are accumulated dividends.

20 Sony Financial Holdings Inc. Financial Data Book 2015

̶̶

Asset-formation
insurance,
asset-formation
annuities

¥̶

̶
̶
̶
̶
[̶]

Others

¥̶

̶
̶
̶
̶
[̶]

Total

¥ 4,237
3
2,202
2,153
4,191
[1,703]

Sony Life Financial Data (Non-consolidated)

3- 07 Other reserves(Millions of yen)

2014
Balance atthe end of
the period

Balance atthe beginningof the period

For the years ended March 31,

Reserve for possible loan losses
General reserve for possible loan losses
Specific reserve for possible loan losses
Reserve for loan losses from borrowers
in specific foreign countries
Reserve for investment losses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Reserve for price fluctuations

¥

2015

0
235

¥

Balance atthe beginningof the period

Increase(decrease)

0
242

¥

0
6

¥

0
242

Balance atthe end of
the period

Increase(decrease)

¥

¥

0
267

0
25

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

22,770171
32,26425,38966
41,556

2,619
(104)
9,291

17,008*66
41,556

6,352
19,72591
42,845

6,352
2,716
24
1,288

*The “Accounting Standards for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and the “Guidance on Accounting Standards for Retirement
Benefits” (ASBJ Guidance No. 25, March 26, 2015) have been applied from the fiscal year under review. Accordingly, the calculation method for retirement
benefit obligations and service costs has been revised. As a result, the balance at the beginning of the period decreased ¥8,381 million.

3- 08 Insurance premiums(Millions of yen)

For the years ended March 31,

2014

2015

Individual life insuranceLump-sum payment
Annual payment
Semi-annual payment
Monthly payment
Individual annuities
Lump-sum payment
Annual payment
Semi-annual payment
Monthly payment
Group life insuranceGroup annuities
Total, including others¥936,009
162,027
220,465
9,986
543,530
16,469
3,504
3,990
216
8,757
4,523
2,658
¥959,660¥873,718
57,458240,743
10,343565,171
32,642
16,495
5,409
238
10,4984,855
1,280¥912,497

3- 09 Insurance claims(Millions of yen)

2014

Asset-formation
insurance,
asset-formation
annuities

Total

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥45,108
674
2,666
21,9307,034¥77,413¥44,056
707
2,195
22,513
8,206¥77,679¥̶

¥1,772
0
101

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

69
¥1,942

̶

̶

̶

¥̶

¥̶

¥̶

For the years ended March 31,

Death benefits
Accidental benefits
Disability payments
Maturity benefits
Others
Total

2015

̶
̶

¥̶

OthersTotal¥45,828707
2,296
22,513
8,275¥79,622

3- 10 Annuity payments(Millions of yen)

2014

For the years ended March 31,

Annuity payments

Total¥10,7682015
Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥̶¥9,249¥8¥2,022

Asset-formation
insurance,
asset-formation
annuities¥̶

Others¥̶

Total¥11,280

Sony Financial Holdings Inc. Financial Data Book 2015 21

Sony Life Financial Data (Non-consolidated)

3- 11 Insurance benefits(Millions of yen)

2014

2015

Total

Individual life
insurance

Individual
annuities

Group life
insurance¥ 2,210¥ 2,467¥ 42¥̶Hospitalization benefits

8,992

9,128

̶

0

̶

Surgery benefits

8,604

8,957

̶

̶

̶

For the years ended March 31,

Death benefitsGroupannuities

Asset-formation
insurance,
asset-formation
annuities

̶¥

Others

¥̶

Total

¥̶

¥ 2,509

̶

̶

9,128

̶

̶

8,957

Disability benefits

169

128

̶

0

̶

̶

̶

128

Living benefits

23,07030,835

̶

̶

̶

̶

̶

30,835

Others12,462

9,957

575

̶

1,073

̶

̶

11,607

Total¥55,510¥61,474¥618¥0¥1,073¥̶¥̶

¥63,166

3- 12 Surrender payments(Millions of yen)

2014

Total

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥178,402¥181,503¥5,676¥̶

¥35,950

For the years ended March 31,

Surrender payments

2015
Asset-formation
insurance,
asset-formation
annuities

Others

¥̶

Total

¥̶

¥223,130

3- 13 Depreciation and amortization(Millions of yen, %)2014
For the years ended March 31,

Acquisition
cost

Tangible fixed assets¥ 4,807

Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets

Balanceat the endof the period

Ratio ofdepreciation

Acquisition
cost

Balanceat the end
Depreciation Accumulated
expensesdepreciation of the period

Ratio ofdepreciation¥ 262 ¥ 2,446 ¥ 2,361¥ 266 ¥ 2,582 ¥ 2,274

53.2%

Depreciation
expenses

Accumulated
depreciation

50.9%¥ 4,857

3,528

176

1,490

2,037

42.3

3,567

178

1,574

1,993

44.1

20

0

0

19

1.7

20

4

4

15

21.7

1,259

86

955

304

75.8

1,269

84

1,003

266

79.0

38,095

4,799

14,23523,85937.4

39,825

4,997

18,244

21,580

45.8

2

6

5

3

8

13

Others
Total

2015

11
¥42,915¥5,064 ¥16,688 ¥26,226

52.6

22

38.9%

¥44,705¥5,267 ¥20,836 ¥23,869

39.0
46.6%

3- 14 Operating expenses(Millions of yen)

For the years ended March 31,

2014

2015

Sales and marketing expenses¥ 56,713¥ 56,354

Sales administrative expenses

14,887

15,904General administrative expenses
Total

42,26743,344¥113,868¥115,603

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:(Millions of yen)
For the years ended March 31,

2014

2015

Life Insurance Policyholders Protection Corporation of Japan

¥846

¥708

22 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)

4 Reconciliation to Core Profit and Non-consolidated Ordinary Profit
For the years ended March 31,

Core profit(A)

Capital gains(Millions of yen)

2014

2015

¥72,365¥76,505

2,130

14,447

Income from monetary trusts, net

̶̶

Income from trading securities, net

̶479

Gains on sale of securities

773

8,899

Gains on derivatives, net

172

̶

1,183

5,068

Foreign exchange gains, net
Other capital gains
Capital losses
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities

̶

̶

949

6,011

̶

̶

̶

̶

528

0

Devaluation losses on securities̶̶

Losses on derivatives, net

̶

2,099

Foreign exchange losses, net
Other capital losses
Net capital gains (losses)
Core profit plus net capital gains (losses)

̶

̶

420

3,910

(B)

1,180

8,435

(A) + (B)73,54584,940̶̶

Gains from reinsurance̶̶

Reversal of contingency reserve̶̶

Reversal of specific reserve for possible loan losses̶̶

Other one-time gains

OthersOther one-time losses
Losses from reinsurance
Provision for contingency reserve

̶

̶

4,340

5,275

̶

̶

4,110

5,035

Provision for specific reserve for possible loan losses

631

Provision for reserve for loan losses from borrowers in specific foreign countries̶̶

Write-off of loans̶̶

OthersNet other one-time gains (losses)
Ordinary profit(C)(A) + (B) + (C)

223

207

(4,340)(5,275)¥69,205¥79,665

Notes: 1. Core profit for the fiscal year ended March 31, 2015 (A) includes income gains of ¥5,283 million in income from monetary trusts along with interest
income and dividends of ¥28 million in income from trading securities, net. Other capital losses include the provision of policy reserves of ¥3,693 million
for currency market fluctuations of products denominated in foreign currencies and impairment losses of ¥217 million from investment partnerships.
“Others” of other one-time losses include the provision of additional policy reserve of ¥207 million.
2. Core profit for the fiscal year ended March 31, 2014 (A) includes income gains of ¥5,311 million in income from monetary trusts. Other capital losses
include the provision of policy reserves of ¥227 million for currency market fluctuations of products denominated in foreign currencies and impairment
losses of ¥193 million from investment partnerships. “Others” of other one-time losses include the provision of additional policy reserve of ¥223 million.

Sony Financial Holdings Inc. Financial Data Book 2015 23

Sony Life Financial Data (Non-consolidated)

Reference: Reconciliation to core profit(Millions of yen)

For the years ended March 31,

Core Revenues

2014

2015

¥1,194,979¥1,209,380

960,986

914,034

959,660

912,497

Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends

1,325

1,537

204,881

260,390122,160

133,592

Gain on redemption of securities

2

1

Reversal of general reserve for possible loan losses̶̶

Other investment income

47

7

82,670126,789

23,79929,644

Gains on separate accounts, net
Other ordinary income
Income for annuity riders

2,151

3,617

Income for deferred payment of claims

17,19722,154̶̶

Reversal of reserves for outstanding claims
Other ordinary income
Other core revenues
Core Expenses
Insurance claims and other payments

4,451

3,872

5,311

5,311

1,122,613

1,132,874

327,257

382,902

Insurance claims

77,413

79,622

Annuity payments

10,768

11,280Insurance benefits

55,51063,166

Surrender payments

178,402223,130

Refund to policyholders

3,203

3,675

Reinsurance premiums

1,959

2,027

646,203595,420

Investment expenses

7,777

7,377

Interest expenses

48

31

Losses on redemption of securities

̶0

Provision for general reserve for possible loan losses

00

Depreciation of real estate for rent and others

2,077

1,931

Other investment expenses

5,652

5,413

Provision for policy reserves and others̶̶

Operating expenses

113,868

115,603

Other ordinary expenses

Losses on separate accounts, net

27,507

31,571

Payments of deferred claims

10,884

12,184

Taxes

7,981

10,571

Depreciation and amortization

5,064

5,267

Provision for reserve for employees’ retirement benefits

3,532

3,523

Provision for reserve for directors’ retirement benefits̶24

Others

44

0

̶

̶

Other core expenses
Core Profit¥

72,365¥76,505

Reference: Positive spread and yields(Billions of yen, %)For the years ended March 31,

2014

2015

Positive spread

¥8.4

¥13.0

Investment yield for core profit

2.35%

2.35%

Investment yield (general account)

2.20%

2.36%

Average assumed interest rate

2.18%

2.12%

24 Sony Financial Holdings Inc. Financial Data Book 2015

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)2014
As of March 31,

2015

Balance sheet amount

Net valuation gains (losses)
recorded in income

Balance sheet amount¥̶¥̶¥1,062

Trading-purpose securities

Net valuation gains (losses)
recorded in income¥40

Note: The above table includes trading-purpose securities included in “monetary trusts,” etc.

Fair value information on securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)2014
As of March 31,

Held-to-maturity securities

Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,409,662¥4,839,983¥430,320¥430,394¥ 73

Policy reserve matching bonds

̶

̶

̶

̶

̶

Stocks of subsidiaries and affiliated companies

̶

̶

̶

̶

̶

1,065,514

1,189,899

124,384

124,42035

1,035,912

1,146,757

110,844

110,866

22

Japanese stocks

12,236

21,205

8,968

8,972

3

Foreign securities

15,891

19,403

3,511

3,521

10

Available-for-sale securities
Japanese government and corporate bonds

Bonds

15,891

19,403

3,511

3,521

10

Stocks, etc.

̶

̶

̶

̶

̶

Other securities

1,474

2,533

1,059

1,059

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

¥5,475,177¥6,029,882¥554,705¥554,814¥109

Japanese government and corporate bonds¥5,385,143¥5,913,448¥528,305¥528,327¥ 22Japanese stocks

12,236

21,205

8,968

8,972

3

Foreign securities

76,323

92,695

16,371

16,45584

Bonds

76,323

92,695

16,371

16,45584

Stocks, etc.

̶

̶

̶

̶

̶

Other securities

1,474

2,533

1,059

1,059

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Sony Financial Holdings Inc. Financial Data Book 2015 25

Sony Life Financial Data (Non-consolidated)(Millions of yen)

2015
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,878,792¥5,718,258¥ 839,466¥ 839,567

¥101

̶

̶

̶

̶

̶

As of March 31,

Held-to-maturity securities
Policy reserve matching bonds

̶

̶

̶

̶

̶

1,007,822

1,176,698

168,875

168,984

108

Japanese government and corporate bonds

974,613

1,120,126

145,512145,512

̶

Japanese stocks

13,421

29,496

16,075

16,075

̶

Stocks of subsidiaries and affiliated companies
Available-for-sale securities

Foreign securities
Bonds

19,451

26,412

6,961

7,069

108

19,451

26,412

6,961

7,069

108

Stocks, etc.

̶

̶

̶

̶

̶

Other securities

336

663

326

326

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

¥5,886,614¥6,894,956¥1,008,341¥1,008,551¥210

Japanese government and corporate bonds¥101¥5,775,323¥6,736,583¥ 961,259¥ 961,361

Japanese stocks

13,421

29,496

16,075

16,075̶Foreign securities

97,533

128,21430,68030,788108

97,533

128,21430,68030,788

108
̶

Bonds
Stocks, etc.

̶

̶

̶

̶

Other securities

336

663

326

326

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act
of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, as of March 31, 2015
amounted to ¥268,742 million and ¥45,208 million, respectively.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

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

As of March 31,

Held-to-maturity securities

2014

¥

̶

2015

¥

̶

Unlisted foreign bonds

̶̶

Others̶̶̶̶

Stocks of subsidiaries and affiliated companies

16,00018,500Available-for-sale securities

17,28914,492Unlisted domestic stocks (except OTC stocks)̶̶

Unlisted foreign stocks (except OTC stocks)

823

663

Policy reserve matching bonds

Unlisted foreign bonds
OthersTotal

26 Sony Financial Holdings Inc. Financial Data Book 2015

̶

̶16,466

13,828¥33,289¥32,992

Sony Life Financial Data (Non-consolidated)c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b(Millions of yen)2014
As of March 31,

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

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,409,662¥4,839,983¥430,320¥430,394

¥ 73

̶

̶

̶

̶

̶

16,0001,082,804
1,035,912
12,236
16,714
15,891
823
17,94016,0001,214,309
1,146,757
21,205
21,12919,403
1,725
25,217̶̶̶

131,504
110,844
8,968
4,414
3,511
902
7,277

131,986
110,866
8,972
4,424
3,521
902
7,723

481
22
3
10
10

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥5,508,467¥5,385,143
24,236
81,14676,323
4,823
17,940¥6,070,292¥5,913,448
33,20598,42092,695
5,725
25,217¥561,825¥528,305
8,968
17,273
16,371
902
7,277¥562,381¥528,327
8,972
17,357
16,455
902
7,723

¥555
¥ 22
3
84
84

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

446

̶

446

(Millions of yen)2015
As of March 31,

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

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,878,792¥5,718,258¥ 839,466¥ 839,567

¥101

̶

̶

̶

̶

̶

18,5001,022,315
974,613
13,421
20,115
19,451
663
14,16518,5001,198,889
1,120,126
29,49628,48826,412
2,076
20,778̶̶̶

176,574
145,512
16,075
8,373
6,961
1,412
6,613

177,188
145,512
16,075
8,482
7,069
1,412
7,118

614

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥5,919,607¥5,775,323
26,421
103,697
97,533
6,163
14,165¥6,935,647¥6,736,583
42,496
135,790
128,214
7,576
20,778¥1,016,040¥ 961,259
16,07532,09230,6801,412
6,613¥1,016,756¥ 961,361
16,07532,20130,788
1,412
7,118

¥715
¥101

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶
̶

108
108
̶

505

̶

108
108
̶

505

Sony Financial Holdings Inc. Financial Data Book 2015 27

Sony Life Financial Data (Non-consolidated)

5- 02 Fair value information on monetary trusts (general account)(Millions of yen)

2014
Balance sheet
amountAs of March 31,

Monetary trusts

Fair value¥305,346

Net unrealized
gains (losses)

Unrealized gains

Unrealized losses

¥̶

¥̶

¥̶

¥305,346(Millions of yen)

2015
Balance sheet
amountAs of March 31,

Monetary trusts

Fair value¥313,276

Net unrealized
gains (losses)

Unrealized gains

Unrealized losses

¥̶

¥̶

¥̶

¥313,276

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

Monetary trusts for investment

Not applicable

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts(Millions of yen)2014
As of March 31,

Carrying amount

Monetary trusts for held-to-maturity

̶

¥

̶

¥

Unrealized gains

Unrealized losses

̶

¥̶

̶

¥

¥

̶

̶

̶

̶

̶

268,042

305,296

37,25337,253

̶

Monetary trusts for policy reserve matching
Other monetary trusts

Net unrealized
gains (losses)

Fair value(Millions of yen)2015
As of March 31,

Carrying amount

Monetary trusts for held-to-maturity

̶

¥

̶

¥

Unrealized gains

Unrealized losses

̶

¥̶

̶

¥

¥

̶

̶

̶

̶

̶

268,017313,225

45,20845,208̶

Monetary trusts for policy reserve matching
Other monetary trusts

Net unrealized
gains (losses)

Fair value

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

5- 03 Fair value information on derivative transactions (general account) (total of derivatives

to which hedge accounting is applied and derivatives to which hedge accounting is
not applied)

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

2014

2015

Interest
raterelated

Currencyrelated

Stockrelated

Bondrelated

OthersTotal

Interest
rate- Currency- Stockrelated
relatedrelatedHedge accounting is applied

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥ ̶

¥̶

Hedge accounting is not applied

̶

̶

̶

̶

̶

̶

139

(7)

Total

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥139

As of March 31,

Bondrelated

Others

Total

¥ ̶

¥̶

¥̶

¥ ̶

(612)

̶

̶

(479)

¥ (7) ¥(612)¥̶¥̶¥(479)

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

28 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)

2. Interest rate derivatives(Millions of yen)2014
As of March 31,

2015

Notional
amounttotal

Over 1 year

Fair value

¥̶

¥̶

¥̶

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥̶¥1,000¥1,000¥139¥139

Over-the-counter transactions
Interest rate swaps
Fixed interest rate received/
Variable interest payment

¥̶

Total

¥139

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

Reference: Balance of interest rate swaps by remaining period(Millions of yen, %)2014
As of March 31,

Due after
Due after
Due after
3 years through 5 years through 7 years through10 years
7 years
5 years

Due in1 year or lessDue after
1 year through3 years

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

Fixed interest rate received/
variable interest payment for notional
principal of interest rate swap
Average fixed interest rate received
Average variable interest payment
Total

Due after
10 years

Total(Millions of yen, %)2015
Due in1 year or less

As of March 31,

Fixed interest rate received/
variable interest payment for notional
principal of interest rate swap
Average fixed interest rate received
Average variable interest payment
Total

Due after
Due after
Due after
Due after
1 year through 3 years through 5 years through 7 years through10 years
7 years
5 years
3 years

¥̶

¥̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

¥̶

¥̶

¥̶

Due after
10 years

Total¥1,0001.89%
0.15%¥1,0003. Currency derivatives(Millions of yen)2014
As of March 31,¥1,0001.89%
0.15%¥1,000

Notional
amounttotal

Over 1 year

2015
Fair value

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥¥Over-the-counter transactions
Forward foreign-exchange
contracts
¥̶

¥̶

¥̶

¥̶

¥21,282¥̶

U.S. dollars

̶

̶

̶

̶

10,364

̶

93

93

Euro

̶

̶

̶

̶

9,968

̶

(115)

(115)

Australian dollars

̶

̶

̶

̶

949

̶

15

Sold

Total

¥̶

(7)

(7)

15
¥

(7)

Notes: 1. The forward rate of exchange is used to value forward foreign-exchange transactions at the end of the fiscal year.
2. Fair value is also shown in the column under “Valuation gains (losses).”Sony Financial Holdings Inc. Financial Data Book 2015 29

Sony Life Financial Data (Non-consolidated)

4. Stock derivatives(Millions of yen)2014
As of March 31,

2015

Notional
amounttotal

Over 1 year

Fair value

¥̶

¥̶

¥̶

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥̶¥21,903¥̶¥(612)¥(612)

ListedYen-denominated stockindex futures
Sold

¥̶

Total

¥(612)

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

5. Bond derivatives
Not applicable
6. Others
Not applicable

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)2014
As of March 31,

2015

Balance sheet amount

Net valuation gains (losses)
recorded in income

Balance sheet amount

Net valuation gains (losses)
recorded in income¥620,666¥50,776¥761,473¥89,147

Trading-purpose securities

Note: The above table includes trading-purpose securities included in “monetary trusts,” etc.

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

2014
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains¥4,409,662¥4,839,983¥430,320¥430,394¥ 73

1,065,514
1,035,912
12,236
15,891
15,891

1,189,899
1,146,757
21,205
19,403
19,403

124,384
110,844
8,968
3,511
3,511

124,420
110,866
8,972
3,521
3,521

35
22
3
10
10

1,474

2,533

1,059

1,059

̶
̶
̶

̶
̶
̶
̶
̶

¥5,475,177¥5,385,143
12,23676,32376,323¥6,029,882¥5,913,448
21,20592,69592,695¥554,705¥528,305
8,968
16,371
16,371¥554,814¥528,327
8,972
16,455
16,455

¥109
¥ 22
3
84
84

1,474

2,533

1,059

1,059

As of March 31,

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

̶
̶

̶

̶
̶
̶

30 Sony Financial Holdings Inc. Financial Data Book 2015

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶
̶

Unrealized
losses

̶
̶

̶
̶
̶
̶
̶

Sony Life Financial Data (Non-consolidated)(Millions of yen)2015
As of March 31,

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

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,878,792¥5,718,258¥ 839,466¥ 839,567¥101

1,007,822
974,613
13,421
19,451
19,451

1,176,698
1,120,126
29,496
26,412
26,412

168,875
145,512
16,075
6,961
6,961

168,984
145,512
16,075
7,069
7,069

108

336

663

326

326

¥5,886,614¥5,775,323
13,421
97,533
97,533¥6,894,956¥6,736,583
29,496
128,214
128,214¥1,008,341¥ 961,259
16,07530,68030,680¥1,008,551¥ 961,361
16,07530,78830,788

336

663

326

326

̶
̶

̶
̶

̶

̶
̶

̶

̶
̶
̶

̶

̶
̶
̶

̶

̶
̶

108
108

̶
̶
̶
̶
̶

̶
̶
̶

̶

̶
̶
̶

̶
̶

̶

̶
̶
̶

̶

̶
̶
̶

̶
̶

¥210
¥101

̶

108
108

̶

̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶

Notes: 1. The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act ofJapan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, as of March 31, 2015
amounted to ¥268,742 million and ¥45,208 million, respectively.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

○ Held-to-maturity securities(Millions of yen)2014
As of March 31,

Held-to-maturity securities whose fair value
exceeds balance sheet amountJapanese government and corporate bonds
Foreign securities
Other securities
Held-to-maturity securities whose fair value
does not exceed balance sheet amountJapanese government and corporate bonds
Foreign securities
Other securities

2015

Balance sheet
amountFair value¥4,404,321
4,349,230
55,090Difference

Balance sheet
amountFair value

Difference¥4,834,716
4,766,691
68,024¥430,394
417,460
12,933¥4,858,704
4,780,622
78,082¥5,698,272
5,596,470
101,801¥839,567
815,848
23,719

̶

̶

̶

̶

̶

̶

5,341

5,267

(73)

̶

̶

̶

20,08720,087

19,98519,985

(101)
(101)

5,341

5,267

(73)

̶

̶

̶

̶

̶

̶

̶

̶

̶

○ Policy reserve matching bonds

Not applicableSony Financial Holdings Inc. Financial Data Book 2015 31

Sony Life Financial Data (Non-consolidated)○ Available-for-sale securities(Millions of yen)2014
As of March 31,

Available-for-sale securities whosebalance sheet amount exceeds
carrying amountJapanese government and corporate bonds
Japanese stocks
Foreign securities
Other securities
Monetary claims purchased
Certificates of deposit
OthersAvailable-for-sale securities whosebalance sheet amount does not exceed
carrying amountJapanese government and corporate bonds
Japanese stocks
Foreign securities
Other securities
Monetary claims purchased
Certificates of deposit
Others2015

Carrying
amountBalance sheet
amount¥1,017,996
989,552
12,041
14,9281,474

Difference

Carrying
amountBalance sheet
amountDifference¥1,142,416
1,100,419
21,01318,4502,533¥124,420
110,866
8,972
3,521
1,059

¥1,004,852
974,613
13,421
16,481336¥1,173,837
1,120,126
29,49623,551
663¥168,984
145,512
16,075
7,069
326

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

47,51846,360195
962

47,482
46,338
191
952

(35)
(22)
(3)
(10)

2,969

2,861

(108)

̶

̶

̶

̶

̶

̶

2,969

2,861

(108)

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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

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 domestic stocks (except OTC stocks)
Unlisted foreign stocks (except OTC stocks)
Unlisted foreign bonds
OthersTotal

32 Sony Financial Holdings Inc. Financial Data Book 2015

2014

¥

̶

2015

¥

̶

̶

̶

̶

̶

̶

̶

16,00017,28918,50014,492

̶

̶

823

663

̶

̶

16,466¥33,289

13,828¥32,992

Sony Life Financial Data (Non-consolidated)c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b is
as follows:(Millions of yen)2014
As of March 31,

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

Net unrealized
gains (losses)

Unrealized
gains¥4,409,662¥4,839,983¥430,320¥430,394

¥ 73

̶

̶

̶

̶

̶

16,0001,082,804
1,035,912
12,236
16,714
15,891
823
17,94016,0001,214,309
1,146,757
21,205
21,12919,403
1,725
25,217̶̶̶

131,504
110,844
8,968
4,414
3,511
902
7,277

131,986
110,866
8,972
4,424
3,521
902
7,723

481
22
3
10
10

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥5,508,467¥5,385,143
24,236
81,14676,323
4,823
17,940¥6,070,292¥5,913,448
33,20598,42092,695
5,725
25,217¥561,825¥528,305
8,968
17,273
16,371
902
7,277¥562,381¥528,327
8,972
17,357
16,455
902
7,723

¥555
¥ 22
3
84
84

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Unrealized
losses

̶

446

̶

446

(Millions of yen)2015
As of March 31,

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

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥4,878,792¥5,718,258¥ 839,466¥ 839,567

¥101

̶

̶

̶

̶

̶

18,5001,022,315
974,613
13,421
20,115
19,451
663
14,16518,5001,198,889
1,120,126
29,49628,48826,412
2,076
20,778̶̶̶

176,574
145,512
16,075
8,373
6,961
1,412
6,613

177,188
145,512
16,075
8,482
7,069
1,412
7,118

614

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥5,919,607¥5,775,323
26,421
103,697
97,533
6,163
14,165¥6,935,647¥6,736,583
42,496
135,790
128,214
7,576
20,778¥1,016,040¥ 961,259
16,07532,09230,6801,412
6,613¥1,016,756¥ 961,361
16,07532,20130,788
1,412
7,118

¥715
¥101

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶
̶

108
108
̶

505

̶

108
108
̶

505

Sony Financial Holdings Inc. Financial Data Book 2015 33

Sony Life Financial Data (Non-consolidated)

6- 02 Fair value information on monetary trusts (company total)(Millions of yen)2014
As of March 31,

Balancesheet amount

Monetary trusts¥305,346 ¥305,346

Fair value

2015

Net
unrealized
gains (losses)

Unrealized
gains

¥̶

¥̶

Fair valueNet
unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥̶ ¥313,276 ¥313,276

¥̶

¥̶

¥̶

Unrealized
lossesBalancesheet amountNote: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment
Not applicable

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts
2014
Carrying
amountAs of March 31,

Monetary trusts for
held-to-maturity

̶ ¥

̶

̶

̶

268,042

305,296¥

Monetary trusts
for policy reserve
matching
Other monetarytrustsFair valueNet
unrealized
gains (losses)¥(Millions of yen)

2015

̶

Unrealized
gains

Unrealized
lossesCarrying
amountFair valueNet
unrealized
gains (losses)

Unrealized
losses

̶

¥̶

̶

¥̶ ¥

̶ ¥

̶

̶

̶

̶

̶

̶

̶

̶

̶

37,25337,253

̶

268,017313,225

45,20845,208̶¥¥̶

Unrealized
gains

¥

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

6- 03 Fair value information on derivative transactions (company total)
Qualitative Information

1. Transaction details
The main derivative transactions used by Sony Life are as follows:• Interest rate-related:
Interest rate swap transactions• Currency-related:
Forward foreign exchange transactions• Stock-related:
Stock index futures trading
2. Purpose of use and policy on derivative transactions
Sony Life’s policy is to conduct derivative transactions to reduce risks related to its holdings of assets and liabilities, and does notengage in speculative derivative transactions.
• Interest rate-related:
The purpose is to hedge interest rate-related risk on its holdings of assets and liabilities.
• Currency-related:
The purpose is to hedge foreign currency risk related to its holdings of foreign currency-dominated assets andforeign currency risk related to the minimum guaranteed for individual variable life insurance.
• Stock-related:
The purpose is to hedge equity-related risk corresponding to the minimum guaranteed for individual variable
life insurance.
3. Risk details
The risk of fluctuations in market value (interest rate-related risk, currency-related risk and stock-related risk) is inherent to derivativetransactions 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 isinherent to derivative instruments, but when conducting transactions, Sony Life selects parties that it believes pose little risk of default.
4. Risk management systems
Sony Life’s balance of derivative transactions is within the limits that Sony Life has set in-house. On transactions conducted by thedivision in charge of investment, the administrative division receives reports directly from the transaction counterparty. This systemenables 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 ofsupervision. Also, the risk management division regularly reports the overall risk status to the Company’s Board of Directors andExecutive Committee.
5. Supplemental information regarding quantitative information
Sony Life does not employ hedge accounting for derivative transactions.

34 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Financial Data (Non-consolidated)

Quantitative Information
1. Breakdown of valuation gains and losses (Derivatives to which hedge accounting is applied and derivatives to which hedge accounting is
not applied)(Millions of yen)2014
As of March 31,

Hedge accounting is applied

2015

Interest
raterelated

Currencyrelated

Stockrelated

Bondrelated

OthersTotal

Interest
rate- Currency- Stockrelated
relatedrelated

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥ ̶

¥̶

¥ ̶

Bondrelated

Others

Total

¥̶

¥̶

¥ ̶

Hedge accounting is not applied

̶

̶

̶

̶

̶

̶

139

(7)

(612)

̶

̶

(479)

Total

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥139

¥(7) ¥(612)¥̶¥̶¥(479)

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

2. Derivatives to which hedge accounting is not applied
Interest rate derivatives(Millions of yen)2014
As of March 31,

2015

Notional
amounttotal

Over 1 year

Fair value

¥̶

¥̶

¥̶

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥̶¥1,000¥1,000¥139¥139

Over-the-counter transactions
Interest rate swaps
Fixed interest rate received/
Variable interest payment

¥̶

Total

¥139

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

Reference: Balance of interest rate swaps by remaining period(Millions of yen, %)2014
As of March 31,

Fixed interest rate received/
variable interest payment for notional
principal of interest rate swap
Average fixed interest rate received
Average variable interest payment
Total

Due after
Due after
Due after
3 years through 5 years through 7 years through10 years
7 years
5 years

Due in1 year or lessDue after
1 year through3 years

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

Due after
10 years

Total(Millions of yen, %)2015
As of March 31,

Fixed interest rate received/
variable interest payment for notional
principal of interest rate swap
Average fixed interest rate received
Average variable interest payment
Total

Due in1 year or lessDue after
Due after
Due after
Due after
1 year through 3 years through 5 years through 7 years through10 years
7 years
5 years
3 years

¥̶

¥̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

¥̶

¥̶

¥̶

Due after
10 years¥1,0001.89%
0.15%¥1,000Total¥1,0001.89%
0.15%¥1,000Sony Financial Holdings Inc. Financial Data Book 2015 35

Sony Life Financial Data (Non-consolidated)

Currency derivatives(Millions of yen)2014
As of March 31,

Notional
amounttotal

Over 1 year

2015
Fair value

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥¥Over-the-counter transactions
Forward foreign-exchange
contracts
¥̶

¥̶

¥̶

¥̶

¥21,282¥̶

U.S. dollars

̶

̶

̶

̶

10,364

̶

93

93

Euro

̶

̶

̶

̶

9,968

̶

(115)

(115)

Australian dollars

̶

̶

̶

̶

949

̶

15

Sold

(7)

¥̶

Total

(7)

15
¥

(7)

Notes: 1. The forward rate of exchange is used to value forward foreign-exchange transactions at the end of the fiscal year.
2. Fair value is also shown in the column under “Valuation gains (losses).”

Stock derivatives(Millions of yen)2014
As of March 31,

Notional
amounttotal

Over 1 year

¥̶

¥̶

2015
Fair value

Valuation
gains(losses)

Notional
amounttotal

Over 1 year

Fair value

Valuation
gains(losses)¥̶¥̶¥21,903¥̶¥(612)¥(612)

ListedYen-denominated stockindex futures
Sold
Total
Note: Fair value is also shown in the column under “Valuation gains (losses).”

Bond derivatives
Not applicable
OthersNot applicable
3. Derivatives to which hedge accounting is applied
Interest rate derivatives
Not applicable
Currency derivatives
Not applicable
Equity derivatives
Not applicable
Bond derivatives
Not applicable
OthersNot applicable

36 Sony Financial Holdings Inc. Financial Data Book 2015

¥̶¥(612)

Sony Life

Performance Indicators (Non-consolidated)
1 Key Performance Indicators for Past Five Years
For the years ended March 31,

Policy amount in force
Individual life insurance(Millions of yen)

2011

2012

2013

2014

2015

¥35,947,326¥37,345,780¥39,124,675¥40,500,241¥42,430,898

34,421,831

35,707,301

37,366,333

38,628,089

40,391,018

Individual annuities

326,699369,759

412,709466,915597,682Group life insurance

1,198,794

1,268,718

1,345,632

1,405,237

1,442,198

Policy amount in force for group annuities

58,93757,81156,50355,196

17,210

Annualized premiums from insurance in force

604,793

635,401

669,937

696,986

735,728

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

140,776

148,954

158,686

167,075

172,800

New policy amount

4,213,996

4,207,045

4,460,210

3,894,484

4,776,917

4,166,278

4,145,663

4,396,676

3,814,291

4,625,700

Individual annuities

32,746

57,66457,93175,088145,926

Group life insurance

14,971

3,717

5,602

5,104

5,291

71,23070,85473,263

63,992

76,612

16,67917,101

18,397

13,486

15,285

Individual life insurance

Annualized premiums from new policies
Of which, medical protection, living benefit
protection and other products
Ordinary revenues

900,091

967,400

1,142,274

1,197,109

1,223,827

Of which, income from insurance
premiums

770,330

816,106

925,874

960,986

914,034

Of which, investment income

119,500

133,945

199,833

212,323

280,148826,914897,964

1,067,614

1,127,904

1,144,162

Of which, insurance claims andother payments

297,966

287,431

293,929

327,257

382,902

Of which, investment expenses

19,303

14,37011,686

8,506

9,727

Of which, operating expenses

99,374105,492

109,060

113,868

115,603

Ordinary profit

73,17669,43674,65969,20579,665

Net income

40,22031,42642,44437,06342,524

Core profit

56,29571,68580,04572,36576,505

Common stock

70,00070,00070,00070,00070,000Ordinary expenses

Number of shares issued and outstanding(thousands of shares)

70,00070,00070,00070,00070,0004,723,332

5,222,846

5,952,750

6,624,903

7,301,350

398,124444,289

550,624

640,562

793,344

4,371,484

4,843,020

5,472,930

6,123,633

6,727,241

134,419

138,909145,104

154,219

162,399

Securities

4,017,583

4,545,019

5,211,535

5,954,716

6,543,703

Solvency margin ratio

2,900.1%[1,720.0%]

1,980.4%

2,281.8%

2,358.7%

2,555.0%

Number of employees

5,921

6,060

6,323

6,553

6,781

Total assets
Of which, 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 commencedand (b) the amount of policy reserves for policies for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
3. New policy amount is the total of individual life insurance, individual annuities and group life insurance. New policy amount for individual annuities isequal to the funds to be held at the time annuity payments commence.
4. Annualized premiums, which include 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 lump-sum payment policies, premiums are divided by the
number of coverage years.)
5. “Medical protection, living benefit protection and other products” is the portion of the annualized premium for medical protection benefits (hospitalization
benefits, surgical benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.).
6. Cabinet Office Ordinance No. 23 of 2010 and Public Notice of Financial Services Agency No. 48 of 2010 prescribe a revision in the methods ofcalculating total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive).
Therefore, the figure for the year ended March 31, 2011 and the figures for the years ended March 31, 2012 to 2015 are calculated based on different
methods. The above-stated figure in [1,720.0%] as of March 31, 2011 is calculated on the assumption that these changes were applied as of March 31,
2011. The figure is also included in disclosures for the fiscal year ended March 31, 2011.

Sony Financial Holdings Inc. Financial Data Book 2015 37

Sony Life Performance Indicators (Non-consolidated)

2 Key Performance Indicators
2- 01 Policy amount in force and new policy amount
Policy amount in force(Millions of yen, %)2014
As of March 31,

Individual life
insurance
Individual annuities
Group life insuranceGroup annuities

NumberChange fromMarch 31, 2013

6,236,000
94,413̶̶

104.6%
114.8
̶
̶

2015
Change fromMarch 31, 2013

Amount¥38,628,089
466,915
1,405,237
55,196

Change fromMarch 31, 2014

Number

103.4%
113.1
104.4
97.7

6,552,685
119,419105.1%
126.5

̶
̶

̶
̶

Change fromMarch 31, 2014

Amount¥40,391,018
597,682
1,442,198
17,210104.6%
128.0
102.6
31.2

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

New policy amount(Millions of yen, %)2014

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number

517,946
15,719̶̶

YoY change

85.3%
117.8
̶
̶

Amount¥3,814,291
75,0885,104

YoY change

86.8%
129.6
91.1

̶

̶

Amount,of which,increase fromconversion

Amount,of which,
new policies¥̶

¥3,814,291
75,088
5,104

̶
̶
̶

̶

(Millions of yen, %)2015

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

NumberYoY change

578,831
27,823̶̶

111.8%177.0
̶̶

AmountYoY change¥4,625,700
145,9265,291

121.3%
194.3
103.7

̶

̶

Amount,of which,increase fromconversion

Amount,of which,
new policies¥̶¥4,625,700
145,926
5,291

̶
̶
̶

̶

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

2- 02 Annualized premiums
Policy amount in force(Millions of yen, %)2014
As of March 31,

Individual life insurance
Individual annuities
Total
Of which, medical protection, living benefit
protection and other products

Amount¥680,005
16,980¥696,986

2015
Change fromMarch 31, 2013103.9%
111.6
104.0%

167,075

Change fromMarch 31, 2014

Amount105.3¥714,620
21,107¥735,728

105.1%
124.3
105.6%

172,800

103.4

New policies(Millions of yen, %)2014
For the years ended March 31,

Individual life insurance
Individual annuities
Total
Of which, medical protection, living benefit
protection and other products

Amount¥61,269
2,723¥63,992
13,4862015
YoY change

86.2%
124.1
87.3%
73.3

AmountYoY change¥71,795
4,816¥76,612117.2%
176.9
119.7%

15,285

113.3

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on thepremium payment methods, thereby converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the
number of coverage years.)
2. “Medical protection, living benefit protection and other products” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

38 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

2- 03 Policy amount in force and new policy amount by product
Policies and policy amount in force by product(Millions of yen)2014
As of March 31,
Individual life insurance products
Pure death-protection insurance
Variable life insurance (whole life type)
U.S. dollar-denominated whole life insurance
Modified payment whole life insurance
Limited payment whole life insurance
Family insurance
Interest rate-sensitive whole life insurance
Whole life insurance (no selection 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)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 (with disability benefit)
Increasing term life insurance (reduced surrender value)
Level premium plan term life insurance (no surrender value)
Income protection insurance to cover three major diseases
Semi-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 insuranceLong-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
Living benefit rider
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 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

Number

2015
AmountNumber

4,743,523
610,296
18,49415,090332,430
1,245
564,387
4,317
511,682¥35,556,338
3,188,877
165,529
140,607
2,711,866
11,522
3,179,370
7,738
1,763,371

1,352
221,5283,293
86,42368,65058,577
18,55826,18251,431
71
35,922
3,349
42,747
17,294
130,595
12,528214,595
61,91831,867
1,586,695
11,94661[522,914]
378,275
47,944
1,842
2,242
258,380
67,86744,3055,764,089
49,5691,783,849
1,297,123
534,460
755,669
578,534
1,477,624
6,110
1,619,192
116,349
789,873
13,261
492,393
2,441
29,251
5,713

1,114,202
13,317
1,100,885[̶]
6,236,000

Amount¥37,129,771
3,602,970
476,044
133,183
2,710,522
11,1283,085,149
7,255
1,831,852
164,163
43,0186,340,146
40,801
1,709,811
1,321,041
658,024
743,221502,884
1,316,593
5,395
1,985,996
108,573862,868
15,888502,877
3,210
28,487
6,084

1,756,085
15,6801,740,405

4,958,598
685,767
46,68014,621
338,058
1,217
552,782
4,092
532,627
41,301
1,288
245,845
2,898
83,60069,81170,823
18,101
24,28948,26747
43,121
3,102
46,54819,819133,832
15,910210,300
67,39530,821
1,594,273
11,30855[527,854]
407,795
61,492
2,918
3,411
267,362
66,2516,361
1,186,292
73,793
1,112,499

38,628,089

6,552,685

40,391,018

55,94130,281
8,191
94,413

247,101
160,834
58,979466,915

64,13846,192
9,089
119,419282,646
250,875
64,160597,682

95,087
134,1031,729,468
45
1,958,703

233,526
75,0881,096,603
18
1,405,237

93,235
126,811
1,599,340
35
1,819,421

178,128
69,746
1,194,312
10
1,442,198

25,437
159,268
184,705

3,872
51,32455,196

21,52559,871
81,3962,505
14,704
17,210

̶

̶

̶
̶

̶

̶

675,752
5,025
1,221
8,345,638
1,315,664
137,093
8,058
9,485
983,264
177,764

̶

̶

̶
̶

̶

̶
̶

̶

656,479
4,787
1,089
8,250,219
1,422,354
184,187
13,70318,183
1,006,238
173,342
26,6991,838,892
79,087
1,759,805

̶̶̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump sum nursing-careriders every five years.”
2. The total number of policies in force for “term riders and others” and “living benefit rider” 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 for which 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 commence.
4. “Others” under individual annuity products include “semi-participating nursing-care riders,” “semi-participating fixed individual annuity riders,” and thepolicies for which annuity payments have commenced.
The policy amounts of the policies for which annuity payments have commenced are those of outstanding policy reserves.
5. The numbers of policies for group life insurance products, group annuity products, medical protection insurance (group-type) and “reinsurance
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 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.
7. The policy amount in force for group annuity products is equal to the amount of outstanding policy reserves.
8. The amount of medical protection insurance (group-type) is equal to the daily benefits for hospitalization.

Sony Financial Holdings Inc. Financial Data Book 2015 39

Sony Life Performance Indicators (Non-consolidated)

New policies and new policy amount by product(Millions of yen)

2014
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
Modified payment whole life insurance
Limited payment whole life insurance
Family insurance
Interest rate-sensitive whole life insurance
Whole life insurance (no selection 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)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 (with disability benefit)
Increasing term life insurance (reduced surrender value)
Level premium plan term life insurance (no surrender value)
Income protection insurance to cover three major diseases
Semi-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 insuranceLong-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
Living benefit rider
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 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

Number

2015
AmountNumberAmount369,707
48,54918,725
1
13,610¥3,424,239
213,026
164,923
10
70,372434,256
91,162
29,162¥4,321,409
444,259
265,734

12,79569,174

21,388314
71,722

121,846463
273,27428
28,617

1,547
868,575

6,714
267
44,824
41,63638,968408
172,252
165,826

41,925

1,254,219

4,107
7,430
13,035919

89,827
190,682
129,636
46,356

5,196
6,394
19,9381,147

106,237
171,229
191,091
61,399

7,982
231
7,520
3,786
12,916
4,369
3,775
8,729
2,071
89,883

373,702
6,658
147,705
3,067
48,199
928
365
761

9,431
180
7,242
4,285
8,532
4,214
4,541
8,839
2,454
83,378

460,524
6,330
141,832
4,191
33,144925
482
769[36,234]
91,693
8,095
1,870
2,272
76,511
2,945

652,550
304,877
23,461
7,954
9,417
254,597
9,446

56,546
13,32643,220[̶]
517,946

85,174
15,693
69,481[37,807]54,786
16,235
1,134
1,242
27,792
1,916
6,467
89,78960,953
28,836715,699
194,725
50,354
4,224
6,933
99,207
6,970
27,034
109,565
64,00445,5603,814,291

578,8314,625,700

10,486
5,233

45,78029,308

10,252
17,571

46,04099,885

15,71975,08827,823145,926828
14,997

6
5,098

2,162
764

4,248
1,043

15,825

5,104

2,926

5,291

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶

̶

̶

̶
̶
̶

̶
̶

̶

̶

̶
̶

̶

̶

̶

̶
̶
̶

̶

19,756

̶
̶

̶

̶

̶

̶
̶

̶

̶

̶
̶

̶
̶
̶

̶
̶

̶

̶

̶
̶

̶
̶

̶
̶

̶
̶
̶

̶

16,708

̶
̶

̶

̶

̶
̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump sum nursing-careriders every five years.”
2. The total number of policies in force for “term riders and others” and “living benefit rider” 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 for policies.
4. The number of new policies for group life insurance products, group annuity products, medical protection insurance (group-type) and “reinsurance
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.

40 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

2- 04 Policy amount in force by insurance function(Millions of yen)

As of March 31,

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

2014

2015

¥36,872,003[108,424]
1,405,218¥38,552,125[144,044]
1,442,187

38,277,222

39,994,313[6,815,689][6,590,527]

[730]

[345]

[6,816,420][6,590,873][1,345,860][1,279,418][1,345,860][1,279,418]

1,756,085
408,466

1,838,892
534,163

2,164,552

2,373,056

̶

̶
̶

̶
̶
̶

̶
̶

̶

̶
̶

̶
̶
̶

̶
̶

̶

̶

[55,275][7][70,474][5][55,282][70,479]

̶

̶

̶

̶

58,44818
55,196113,664

63,51810
17,21080,740[18,095][18,120]

̶

[12]

̶

[9]

̶

̶

[18,108][18,130][18,095][18,120][18,095][18,120][7,419][7,251][7,419][7,251]

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

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 policies forindividual 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 in sickness hospitalization within hospitalization protection show the total including primary coverage and rider coverage.
*Figures for primary coverage, if any, are shown without [ ]. If there is no primary coverage, figures for additional coverage are shown in [ ].

Sony Financial Holdings Inc. Financial Data Book 2015 41

Sony Life Performance Indicators (Non-consolidated)

2- 05 Number of policies in force by insurance function
As of March 31,

2014

2015

Disability protection
Individual life insurance

496,356

535,195

Individual annuities̶̶Group life insurance

49,321

48,142

̶̶

545,677

583,337

1,677,071

1,680,530

Individual annuities̶̶Group life insurance̶̶Group annuities̶̶

1,677,071

1,680,530

Group annuities
Total
Surgery protection
Individual life insurance

Total

2- 06 Policy amount in force by type of individual life insurance and individual annuities(Millions of yen)

As of March 31,

2014

2015

Pure death-protection insurance
Whole life insurance¥ 7,980,007¥ 8,419,299

̶̶Term life insurance

14,722,876

15,554,558

Total

35,556,338

37,129,771

Whole life insurance with term rider

Mixed insurance
1,169,086

1,193,284

Endowment insurance with term rider

Endowment insurance̶̶Term life insurance with living benefits̶̶

1,315,664

1,422,354

1,756,085

1,838,892

466,915597,682

Total
Pure endowment insurance
Annuity products
Individual annuities
Riders for disaster and disease
Rider to cover accidental death

3,484,766

3,347,551

Injury rider

3,330,923

3,242,975

Comprehensive protection riders covering hospitalization

489

467

Comprehensive protection riders covering hospitalization for family

21

19

Comprehensive protection riders covering lifestyle-related disease

52

50

Medical treatment rider for adults

1,295

1,252

Medical treatment rider for women

1,281

1,259

Lifestyle diseases medical treatment rider

16

15

New medical treatment rider for women

4

4

241

243

6,514

6,628

Cancer rider
Rider to cover initial period of hospitalization

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 for policies for whichannuity 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.

42 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

2- 07 Change in policy amount in force
Individual life insurance(Millions of yen, %)

2014

2015

For the years ended March 31,

NumberAmountNumberAmountBalance at the beginning of the period

5,958,963¥37,366,333

6,236,000¥38,628,089

New policy amount

517,946

3,814,291

578,8314,625,700

Increase from renewal

15,01355,283

13,85949,869

Increase from reinstatement

19,558111,830

17,796

105,965
2,241

Increase in policy amount

[248]

2,523

[309]

Increase from conversion

̶

̶

̶

̶

Increase for other reasons

13,612

191,967

12,015242,220

Decrease from death

9,719

60,056

10,37962,727

Decrease for maturity

30,587

114,426

30,525

113,452

Decrease in policy amount[37,478]

171,793[42,765]

190,478

̶

̶

̶

̶

Surrender amount

193,104

1,495,343

214,052

1,857,459

Lapse amount37,362

224,789

34,294215,454

Decrease for other reasons

18,320847,729

16,566

823,495

6,236,000

38,628,089

6,552,685

40,391,018[Increase ratio][4.6%][3.4%][5.1%][4.6%]Net increase

277,037

1,261,755

316,685

1,762,928[Increase ratio][(22.3%)][(23.9%)][14.3%][39.7%]

Decrease from conversion

Balance at the end of the period

Note: Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance.

Individual annuities(Millions of yen, %)2014
For the years ended March 31,

Number

2015
AmountNumberAmountBalance at the beginning of the period

82,261¥412,709

94,413¥466,915

New policy amount

15,71975,08827,823145,926

141

632

189

932

Increase from reinstatement
Increase from conversion

̶

̶

̶

̶

Increase for other reasons

1,311

4,019

1,718

5,933

61

317

65

354

Decrease from death
Decrease for maturity

528

325

799

641

Decrease in annuity amount

[401]

1,858

[415]

1,615

Decrease from conversion
Surrender amount

̶

̶

̶

̶

3,416

18,231

2,752

14,0601,487

Lapse amount

245

1,122

308

Decrease for other reasons

769

3,679

800

3,864

Balance at the end of the period

94,413466,915

119,419597,682[Increase ratio][14.8%][13.1%][26.5%][28.0%]Net increase

12,152

54,20525,006

130,767[Increase ratio][13.6%][26.2%][105.8%][141.2%]

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

Sony Financial Holdings Inc. Financial Data Book 2015 43

Sony Life Performance Indicators (Non-consolidated)

Group life insurance(Millions of yen, %)

2014

2015

For the years ended March 31,

NumberAmountNumberAmountBalance at the beginning of the period
New policy amount
Increase from renewal
Increase from reinstatement
Increase in policy amount (increase by additional purchase of riders)
Increase in policy amount
Increase for other reasons
Decrease from death
Decrease for maturity
Withdrawals
Decrease in policy amount
Surrender amount
Lapse amount
Decrease for other reasons
Balance at the end of the period[Increase ratio]
Net increase[Increase ratio]

2,128,076
15,825216,254¥1,345,632
5,104
305,056

1,958,703
2,926
216,872¥1,405,237
5,291
242,642

̶

̶

̶

̶

77,269[1,392]
86
10,246242,685
224,734[489,465]
970
29
143
1,958,703[(8.0%)](169,373)[̶]

181,637
508
673
1,661
308,324
56,78565,559790
107
149
1,405,237[4.4%]
59,604[(22.5%)]70,166[2,218]113
9,525
229,804
189,095[549,031]
549
151
235
1,819,421[(7.1%)](139,282)[̶]215,697
559
5,179
1,825
302,788
55,30967,802
2,289
2,210
182
1,442,198[2.6%]
36,961[(38.0%)]Notes: 1. Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance.
2. The number of policies reflects the total number of insured parties.

Group annuities(Millions of yen, %)

2014

2015

For the years ended March 31,

NumberAmountNumberBalance at the beginning of the period
New policy amount
Annuity payment
Lump-sum payment
Surrender amount
Balance at the end of the period[Increase ratio]
Net increase[Increase ratio]

191,934¥56,503

184,705

̶

̶

̶

̶

244,140
8,398

2,097
2,201

234,801
4,579
91,02381,396[(55.9%)](103,309)
[̶]

2,022
1,073
35,95017,210[(68.8%)](37,986)[̶]̶̶

184,705[(3.8%)](7,229)[̶]55,196[(2.3%)](1,306)[̶]

Amount¥55,196

Notes: 1. The amounts at the beginning and end of the period are equal to policy reserves at those times.
2. New policy amounts are equal to the sum of initial premium payments.
3. The number of policies reflects the total number of insured parties.

2- 08 Dividends to policyholders
1. Standard dividend yields for semi-participating individual life Insurance and individual annuities with policyholder dividends every
five years
For the years ended March 31,

Assumed interest rates of 2.00% or lessLevel-premium
Lump-sum premium and others
Assumed interest rates of more than 2.00%
Level-premium
Lump-sum premium and others

2014

2015

1.55%
1.20%

1.55%
1.20%

1.40%
1.05%

1.40%
1.05%

2. Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance (before annuity paymentscommence) using figures for the fiscal year ended March 31, 2015.
<Example> Semi-participating whole life nursing-care insurance (before nursing care annuity payments commence)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of ¥0.5 million

44 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)(Yen)
Contract Date

Nov. 2, 2014
Nov. 2, 2013
Nov. 2, 2012
Nov. 2, 2011
Nov. 2, 2010
Nov. 2, 2009
Nov. 2, 2008
Nov. 2, 2007
Nov. 2, 2006

Assumed interest rateYears elapsed

1.00%
1.00
1.50
1.50
1.50
1.50
1.50
1.50
1.50

1 year
2
3
4
5
6
7
8
9

Ongoing policy
¥̶
̶
̶
̶

Policies to which nursing care applies,
ending at death of policyholder¥ 7,533
15,185
0
0
0
0
0
0
0

0

̶
̶
̶
̶

Notes: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable for nursing care or upon death. The
number of years elapsed is the number through November 2, 2015.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount (policy reserve × dividend participation ratio) and interest throughNovember 2, 2015 (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 1.30%, using figures for the fiscal year ended March 31, 2015.
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 policyholders’ dividends is accumulated in accordance with eachproduct’s characteristics.

3 Indicators for Insurance Policies
3- 01 Increase ratio of policy amount in force(%)

For the years ended March 31,

2014

2015

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

3.4%
13.1
4.4
(2.3)

4.6%
28.0
2.6
(68.8)

3- 02 Average policy amount for new policies and policies in force (individual life insurance)(Thousands of yen)

For the years ended March 31,

2014

2015

Average policy amount for new policies
Average policy amount for policies in force¥7,3646,194¥7,991
6,164

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,

2014

2015

Individual life insurance
Individual annuities
Group life insurance

10.2%
21.0
0.4

12.0%
35.7
0.4

(%)

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 cancellations and lapses modified for decreases,
increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.

(%)

For the years ended March 31,

2014

2015

Individual life insurance
Individual annuities
SubtotalGroup life insurance

4.76%
5.75
4.77
4.90

5.58%
3.97
5.56
5.11

The lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of cancellations and lapses not modified for
decreases, increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.
For the years ended March 31,

2014

2015

Individual life insurance + Individual annuities

4.61%

5.35%

(%)

Sony Financial Holdings Inc. Financial Data Book 2015 45

Sony Life Performance Indicators (Non-consolidated)

3- 05 Average premium for new policies of individual life insurance (monthly payment contracts)(Yen)

For the years ended March 31,

2014

2015

Average premiums for new policies¥11,311¥12,200

For the years ended March 31,

2014

Based on number of policies
Based on policy amount

1.59‰
1.58

2015

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

3- 06 Mortality rate (individual life insurance: primary coverage)

(‰)

1.62‰
1.59

3- 07 Incidence rates of riders (individual life insurance)

(‰)

2014
For the years ended March 31,

Number ofpolicies

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

0.095‰
0.126
3.543
36.15714.16640.3579.465

2015
Policy amount

0.101‰
0.041
86.717588.196399.877

Number ofpolicies

0.063‰
0.095
3.608
36.67315.56743.526
10.695

Policy amount

0.106‰
0.027
88.526596.877423.462

3- 08 Operating expense ratio (to insurance premiums)(%)

For the years ended March 31,

2014

2015

Operating expense ratio

11.9%

12.7%

4 Indicators Related to Asset Management (General Account)
4- 01 Overview of asset management (general account)
Overview of the asset management for the fiscal year ended March 31, 2015(1) Investment Environment
During the fiscal year ended March 31, 2015, the Japanese economy experienced a modest recovery. Economic growth was negative inthe first half, as the consumption tax increase prompted a demand backlash, particularly in durable goods, while unseasonable summer
weather held down personal consumption. In the second half, an expanded quantitative easing program introduced by the Bank of Japan(BOJ) in October 2014 prompted yen depreciation and a recovery in exports. In addition, falling crude oil prices led to an improved balanceof trade, turning economic growth positive.
Real GDP growth, year on year, was a negative 6.8% for the April–June quarter, followed by negative 2.0% in the July–September
quarter. Economic growth turned positive thereafter, at 1.2% for the October–December quarter, and resulted in a positive 3.9%* for theJanuary–March quarter.
The Japanese bond market was affected significantly by the BOJ’s expansion of quantitative easing in October 2014. The BOJ
announced plans to expand the monetary base and increase holdings of long-term Japanese government bonds (JGBs) and exchangetraded funds (ETFs) and to extend its average holding period for long-term JGBs to around 7–10 years. The market responded to the introduction of these policies with growing concern about liquidity, which prompted greater fluctuation in bond yields. Yields on 10-year JGBs,
an indicator of long-term interest rates, fell to 0.201% at one point at the end of October 2014 following increased quantitative easing.
Yields turned back upward after that point, heading to 0.405% as of March 31, 2015 (down 0.237 percentage point year on year).
Stock market performance was up substantially. Stock prices remained firm throughout the year on rising corporate performance andexpectations of growing shareholder returns. The BOJ’s increased quantitative easing measures at the end of October 2014, combinedwith investment asset reallocations by the Government Pension Investment Fund and other public pension funds buoyed expectations ofshare purchases, driving up stock prices. As of March 31, 2015, the Nikkei Stock Average was ¥19,206.99, up ¥4,379.16 from its level on
March 31, 2014.
On foreign exchange markets, the yen continued to depreciate. In the first half of the year, movement against the U.S. dollar centered in atight range around ¥103 against the dollar. Yen depreciation picked up pace, however, following the BOJ’s increased quantitative easing in
October 2014, pushing the exchange rate down to ¥121.46 to the U.S. dollar at one point in December. Thereafter, observations of a risein U.S. interest rates, falling commodity prices and the introduction of quantitative easing in Europe caused the yen–dollar exchange rate toseesaw. As of March 31, 2015, the yen was trading at ¥120.13 to the U.S. dollar, depreciating ¥16.9 from ¥103.23, its level one year earlier.
*Second preliminary estimates

46 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)(2) Investment Policy
Sony Life’s investment policy is to understand the characteristics of insurance liabilities, and prioritize investment in the assets that meetsuch characteristics based on ALM (asset liability management, the comprehensive management of assets and liabilities). Specifically,
Sony Life is investing primarily in ultra long-term JGBs with longer remaining maturity, to meet the 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 Life’s policy to limit its investment in risky assets including stocks.
(3) Results of Investment
As of March 31, 2015, general account assets totaled ¥6,508.0 billion, up 8.8%, or ¥523.6 billion, from a year earlier. Within generalaccount assets, Japanese government and corporate bonds totaled ¥5,606.8 billion (accounting for 86.2% of total general accountassets), foreign bonds ¥105.5 billion (1.6%), Japanese stocks ¥42.4 billion (0.7%), monetary trusts ¥313.2 billion (4.8%), policy loans¥162.3 billion (2.5%), real estate ¥117.7 billion (1.8%) and cash and deposits and call loans ¥56.8 billion (0.9%).

Portfolio of general account assets
General account assets(Millions of yen, %)2014
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
Monetary trusts
Securities
Japanese government and corporate 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
Of which, foreign-currency-denominated assets

Amount¥2015% of total

32,6170.5%

305,346
5,334,049
5,190,065
33,205
106,752
79,835
26,916
4,026
154,219
154,18038
66,532
13,64378,173(242)¥5,984,341
58,195

5.1
89.1
86.7
0.6
1.8
1.3
0.4
0.1
2.6
2.6
0.0
1.1
0.2
1.3
(0.0)
100.0%
1.0

̶
̶
̶
̶

̶
̶
̶
̶

Amount¥% of total

56,818

̶
̶
̶
̶

0.9%
̶
̶
̶
̶

313,276
5,783,292
5,606,885
42,496
131,627
105,556
26,0702,283
162,399
162,3972
117,764

4.8
88.9
86.2
0.7
2.0
1.6
0.4
0.0
2.5
2.5
0.0
1.8

74,722(268)¥6,508,006
82,1581.1(0.0)
100.0%
1.3

̶̶

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(Millions of yen)

For the years ended March 31,

2014

2015

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Japanese government and corporate 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
Of which, foreign-currency-denominated assets¥ (70,704)¥ 24,201(775)
650,301
629,017
2,099
19,323
17,812
1,510
(138)
9,114
9,161
(47)
(3,769)(80)(1,864)(6)¥582,215
16,4387,929
449,242
416,8199,290
24,87525,721(845)(1,743)
8,180
8,216
(35)
51,231(13,643)(3,451)(26)¥523,665
23,963

̶
̶
̶
̶

̶
̶
̶
̶

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 2015 47

Sony Life Performance Indicators (Non-consolidated)

4- 02 Investment yield by type of asset (general account)(%)

For the years ended March 31,

2014

2015

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

0.05%

0.06%

̶

̶

̶

̶

̶

̶

̶

̶

1.98
2.18
2.06
2.22
8.30
3.80
0.64
5.65
2.20%

1.97
2.40
2.17
3.35
12.69
3.74
0.59
4.39
2.36%

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)(Millions of yen)

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
Monetary trusts
Securities
Japanese government and corporate bonds
Japanese stocks
Foreign securities
Loans
Commercial loans
Real estate
Total
Of which, overseas investment

2014

¥

2015

54,814

Interest income and dividends
Gains on securities under proprietary accounts
Income from monetary trusts, 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

48 Sony Financial Holdings Inc. Financial Data Book 2015

63,624

̶

̶

̶

̶

̶

̶

̶

̶

268,6114,900,002
4,784,298
26,29786,600149,675314
64,367¥5,512,218
87,825

268,749
5,433,180
5,300,313
25,043
105,299
158,224
54
93,211¥6,093,806
106,324

4- 04 Investment income (general account)
For the years ended March 31,¥(Millions of yen)

2014

2015

¥122,160¥133,592

̶

̶

5,311

5,283
507
8,899
1

̶

773
2
172
1,183

̶

5,068

̶

̶

47
¥129,652

7¥153,359

Sony Life Performance Indicators (Non-consolidated)

4- 05 Investment expenses (general account)(Millions of yen)

For the years ended March 31,

2014

Interest expense
Losses on securities under proprietary accounts
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Devaluation losses on 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

¥

2015

48

̶

̶

̶
̶

528

0

̶

̶

̶

0
2,099

̶
̶

̶

6

32

̶

̶

2,077
5,845
¥8,506

1,931
5,630¥9,727(Millions of yen)

For the years ended March 31,

2014

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

2015

¥

0
106,187
98,588
397
6,740
5,691
10,250¥122,160

4- 07 Gains on sale of securities (general account)¥0117,276
107,383
464
8,998
5,921
10,327¥133,592(Millions of yen)

For the years ended March 31,

2014

Gains on sale of Japanese bonds (including JGBs)
Gains on sale of Japanese stocks, etc.
Gains on sale of foreign securities
Total

2015

¥ 1
673
98
¥773

4- 08 Losses on sale of securities (general account)¥7,601
1,298
̶¥8,899(Millions of yen)

For the years ended March 31,

2014

2015

¥ ̶
487
41
¥528

Losses on sale of Japanese bonds (including JGBs)
Losses on sale of Japanese stocks, etc.
Losses on sale of foreign securities
Total

4- 09 Devaluation losses on securities (general account)
Devaluation losses on Japanese bonds (including JGBs)
Devaluation losses on Japanese stocks, etc.
Devaluation losses on foreign securities
Total

31

̶

4- 06 Interest income and dividends (general account)

For the years ended March 31,

¥

̶

¥ 0
̶
̶

¥ 0

(Millions of yen)

2014

2015

¥̶

¥̶

̶

̶

̶

̶

¥̶

¥̶

Sony Financial Holdings Inc. Financial Data Book 2015 49

Sony Life Performance Indicators (Non-consolidated)

4- 10 Securities (general account)(Millions of yen, %)2014
As of March 31,

Japanese government bonds
Japanese municipal bonds
Japanese corporate bonds
Of which, public corporation bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Total

2015

Amount% of total

Amount¥5,158,972
1,003
30,08927,01633,205
106,752
79,835
26,916
4,026¥5,334,049

96.7%
0.0
0.6
0.5
0.6
2.0
1.5
0.5
0.1
100.0%¥5,585,685% of total

96.6%

̶

̶

21,20021,20042,496
131,627
105,556
26,0702,283¥5,783,292

0.4
0.4
0.7
2.3
1.8
0.5
0.0
100.0%

4- 11 Balance of securities by remaining period (general account)(Millions of yen)2014

As of March 31,

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

Due in1 year or less

¥20,374
10,5861,003
6,718

Due after
1 year through3 years

Due after
3 years through5 years

Due after
5 years through7 years

Due after
7 years through10 years

Due after
10 years(including nofixed maturity)¥21,985
12,297¥29,574
15,285¥16,389¥70,532
65,346¥5,175,193
5,055,455

̶

̶

̶

̶

̶

2,058

105

̶

1,639

¥5,334,049
5,158,972
1,003
30,08933,205
106,752
79,835
26,916
4,026

̶

̶

̶

̶

̶

̶

2,007

7,629

16,38912,371
4,017

19,56633,20564,43260,432
4,000
2,533

Total

̶

̶

2,007
58

7,629
̶

13,045
5,099
7,945
1,136

̶

3,248
1,931
1,316
297

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥20,374¥21,985¥29,574¥16,389¥70,532¥5,175,193¥5,334,049(Millions of yen)2015

As of March 31,

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

Due in1 year or less

¥4,028Due after
1 year through3 years

Due after
Due after
Due after
3 years through 5 years through 7 years through10 years
7 years
5 years¥233,584
228,796

Due after
10 years(including nofixed maturity)

Total¥5,488,369
5,336,480¥5,783,292
5,585,685¥11,155

̶

¥24,052
14,960̶

¥22,101
5,447

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,635

21,20042,496
131,627
105,556
26,070
2,283

̶

̶

̶

̶

̶

4,028
4,028

9,091
2,022
7,069
̶

16,207
13,413
2,793
446

3,152
2,410
741

̶

9,982
4,044
5,937
1,173

̶

19,56442,496
89,16583,665
5,500
663

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥4,028¥24,052¥11,155¥22,101¥233,584¥5,488,369¥5,783,292

̶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,

2014

2015

Japanese government and corporate bonds
Foreign bonds

2.08%
3.70

2.04%
3.09

50 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

4- 13 Japanese stock holdings by industry (general account)(Millions of yen, %)

2014

2015

As of March 31,

AmountComposition

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

¥

̶

̶%

̶

AmountComposition

̶

̶%

̶

̶

̶

1,838

5.5

2,089

4.9

554

1.7

1,153

2.7

̶

̶

̶

̶

̶

̶

̶

̶

750
736

2.3
2.2

1,284
1,276

3.0
3.0

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

108

0.3
̶

¥

̶

̶

̶

357

1.1

̶

̶

̶

̶

1,153
4,150
2,304
241
88
631

3.5
12.5
6.9
0.7
0.3
1.9

316
1,654
5,207
3,256
362
313
687

0.7
3.9
12.3
7.7
0.9
0.7
1.6

1,062

3.2

1,760

4.1

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

3,041

9.2

3,314

7.8

277
1,482

0.8
4.5

̶

̶

2,666

6.3

̶

̶

̶

̶

̶

̶

̶

̶

12,000
846

36.1
2.6

13,000
984

30.6
2.3

̶

1,685
¥33,205̶

5.1
100.0%

̶

3,058¥42,496̶

7.2
100.0%

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

4- 14 Loans (general account)
As of March 31,

Policy loans
Policyholder loans
Automatic premium loans
Commercial loans[Of which, loans to borrowers located outside of Japan]
Corporate loans[Of which, corporate loans̶domestic]
Loans to national, international and government-affiliated organizations
Loans to public entities
Mortgage loans
Consumer loans
Other loans
Total(Millions of yen)

2014

2015

¥154,180
138,236
15,94438[̶]¥162,397
146,442
15,954
2
[̶]

̶

̶

[̶]

[̶]

̶

̶

̶

̶

̶

̶

̶

̶

38
¥154,219

2¥162,399

Sony Financial Holdings Inc. Financial Data Book 2015 51

Sony Life Performance Indicators (Non-consolidated)

4- 15 Tangible fixed assets (general account)
Tangible fixed assets(Millions of yen, %)2014
For the year ended March 31,

Land
Buildings
Leased assets
Construction in progress
Other tangible assets

Of which, investment
and rental properties

Balance atthe end of
the period

Amount ofaccumulated
depreciation% ofaccumulated
depreciation

¥ 986
1,118
[31]
171

¥ ̶
2,129

¥30,10336,429̶
¥21,972

37.6

14

19

̶

̶

0

1.7

10
[5]
¥2,285
[36]

140

548

1,524

73.6

¥2,284¥67,100¥23,497

38.8%

2,021

63,334

21,050

Increase in
the period

Decrease in
the period¥31,089
39,212

¥ ̶
464

185

20

482

216

¥70,969¥700

67,231

346

̶

Total

Amount ofdepreciation in
the period

Balance atthe beginning of
the period

̶

̶

̶

2,223

̶%

̶

37.8
(Millions of yen, %)2015
For the year ended March 31,

Balance atthe beginning of
the period

Increase in
the period

Decrease in
the period¥30,10336,429¥52,903
374

19

̶

̶
̶

¥̶
40
[10]

548

49

¥67,100¥53,327

63,334

53,119Land
Buildings
Leased assets
Construction in progress
Other tangible assets
Total
Of which, investment
and rental properties

Balance atthe end of
the period

̶

2,005

¥ 83,007
34,757

4

15
̶

̶

144

¥

̶%

40.7

4

21.7

452

1,631

78.3

¥2,154¥118,232¥25,485

42.0%

1,887

114,552

22,902

41.0

̶

13

̶

¥

23,849

̶
̶

1
[0]
¥42
[10]

% of
accumulated
depreciation

Amount ofaccumulated
depreciation

Amount ofdepreciation in
the period̶

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)

As of March 31,

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

2014

2015

¥66,532
3,442
63,0903¥117,764
3,397
114,3663

4- 16 Overseas investment (general account)
Details by assets(Millions of yen, %)2014
As of March 31,

Assets denominated in foreign currency (yen amount not fixed)
Foreign bonds
Foreign stocks
Cash, deposits and others
Subtotal
Assets denominated in foreign currency (yen amount fixed)
Foreign bonds
Cash, deposits and others
Subtotal
Assets denominated in yen
Loans to borrowers located outside of Japan
Foreign bonds and others
Subtotal
Total
Overseas investment

Amount2015% of total¥ 36,015
1,725
20,45358,195
̶
̶
̶

33.6%
1.6
19.1
54.3
̶
̶
̶

Amount% of total¥ 61,258
2,076
18,824
82,158
̶
̶
̶

46.0%
1.6
14.1
61.7
̶
̶
̶

̶

̶

̶

̶

49,05949,05945.7
45.7

51,09451,09438.3
38.3¥107,254

100.0%¥133,253

100.0%

Note: “Assets denominated in foreign currency (yen amount fixed)” are recorded under assets on the balance sheets at the fixed yen value that was determinedat settlement with foreign exchange forward contracts.

52 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

Overseas investment by region(Millions of yen, %)2014
Of which,foreign bonds

Foreign securities

Of which,foreign stocks, etc.

Loans to borrowers
located outside of Japan

As of March 31,

Amount% of total

Amount% of total

Amount% of total

Amount% of total

North America¥ 37,12534.8%¥29,74237.3%¥ 7,383

27.4%

¥̶

̶%
̶
̶

Europe53,98050.6

46,847

58.7

7,132

26.5

̶

Oceania

3,246

3.0

3,246

4.1

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

12,40011.6

̶̶

12,40046.1̶̶Middle East

̶

̶

̶

̶

̶

̶

̶

̶

Africa

̶

̶

̶

̶

̶

̶

̶

̶

International organizations

̶

̶

̶

̶

̶

̶

̶

̶

100.0%

¥̶

̶%

Asia
Latin America

Total¥106,752

100.0%¥79,835

100.0%¥26,916(Millions of yen, %)2015

Foreign securities

Of which,foreign bonds

Of which,foreign stocks, etc.

Loans to borrowers
located outside of Japan

As of March 31,

Amount% of total

Amount% of total

Amount% of total

AmountNorth America¥ 61,032

46.4%¥ 54,12951.3%¥ 6,902

26.5%

¥̶

̶%

Europe52,492

39.9

47,160

44.7

5,332

20.5

̶

̶

Oceania

4,267

3.2

4,267

4.0

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

13,83510.5

̶̶

13,83553.1

̶̶Middle East

̶

̶

̶

̶

̶

̶

̶

̶

Africa

̶

̶

̶

̶

̶

̶

̶

̶

International organizations

̶

̶

̶

̶

̶

̶

̶

̶

100.0%

¥̶

̶%

Asia
Latin America

Total¥131,627

100.0%¥105,556

100.0%¥26,070% of total

Foreign-currency-denominated assets by currency(Millions of yen, %)2014
As of March 31,

AmountU.S. dollar

2015% of total

Amount% of total

85.8%¥45,301

77.8%¥70,505

Euro

9,148

15.7

7,020

8.5

Australian dollar

3,270

5.6

4,306

5.2

British pound

469

0.8

324

0.4

0.0

̶

̶

Offshore renminbi

3

New Taiwanese dollar
Total

1¥58,195

0.0
100.0%

2

0.0¥82,158

100.0%For the years ended March 31,

2014

2015

Yield on overseas investments

8.19%

12.57%

4- 17 Yield on overseas investments (general account)(%)

Note: Yield on overseas investments is a total of foreign-currency-denominated assets and yen-denominated assets.

Sony Financial Holdings Inc. Financial Data Book 2015 53

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 other securities multiplied by 90% (100% if losses)
Net unrealized gains on real estate multiplied by 85% (100% if losses)
Amount excluded from deferred tax assets
Unallotted portion of reserve for policyholders’ 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
and subordinated 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(Millions of yen)

2014

2015

¥ 954,157
274,027
41,556
63,671
0
118,35475¥1,078,363
301,193
42,84568,707
0
158,917
15,325̶̶

174
78,868400,056

212
81,201
429,392̶̶

(20,626)(2,000)(16,433)(3,000)80,90422,512
8,368
29,616
12,89630,023
2,068

84,411
23,045
8,422
30,13814,37331,4932,149

2,358.7%

2,555.0%

Notes: 1. The figures were 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 of 1996.
2. Minimum guarantee risk is calculated based on the standardized approach.

<Reference> Real net assets(Billions of yen)

As of March 31,

2014

2015

(1) Total amount to be recorded as assets (= + + + – )Total assets on the balance sheet
Difference between fair value and balance sheet amount of securities
Unrealized gain or loss on tangible fixed assets
Unrealized gain or loss other than tangible fixed assets
Deferred tax assets for available-for-sale securities(2) An amount calculated based on total amount to be recorded as liabilities (= – – – – )Total liabilities on the balance sheet
Reserve for price fluctuations
Contingency reserve
Part of reserves for future insurance claim payment
Excess of amount equivalent to surrender values ( (a))
Unallocated amount in reserve for policyholders’ dividends ( (b))
Deferred tax liabilities for available-for-sale securities
Real net assets (A) (1)–(2) (including unrealized gains and losses on held-to-maturity securities)(3) Unrealized gains and losses on held-to-maturity securities
Real net assets (B) (1)–(2)–(3) (excluding unrealized gains and losses on held-to-maturity securities)¥7,056.2
6,624.9
430.3
1.0¥8,159.8
7,301.3
839.4
19.0

̶

̶

̶

̶

5,709.8
6,255.6
41.5
63.6
400.2
400.0
0.1
40.3
1,346.4
430.3
916.1

6,276.8
6,868.8
42.8
68.7
429.6
429.3
0.2
50.8
1,883.0
839.4
1,043.5

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 and losses on held-to-maturity bonds 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.

54 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

6 Balance of Separate Account Assets(Millions of yen)

As of March 31,

2014

2015

Individual variable life insurance and individual variable annuities¥640,562¥793,344

̶̶¥640,562¥793,344

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

7 Status of Individual Variable Life Insurance and Individual Variable Annuities
7- 01 Policy amount in force
Individual variable life insurance(Millions of yen)

2014

2015

As of March 31,

NumberAmountNumberAmountVariable life insurance (whole life type)610,296¥7,302,062

685,767¥7,826,857

Variable life insurance (limited term type)

47,944

164,508

61,492

222,443

Variable life insurance (term type)

1,352

45,807

1,288

44,356

659,592¥7,512,377

748,547¥8,093,657

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

Individual variable annuities(Millions of yen)2014
As of March 31,

NumberIndividual variable annuities

30,502

2015
Amount¥161,758

NumberAmount46,508¥252,266

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

7- 02 Portfolio of separate account assets in individual variable life insurance and individual

variable annuities(Millions of yen, %)2014
As of March 31,

Amount2015% of total

Amount% of total

Cash and deposits, call loans¥ 17,838

2.8%¥ 30,950

3.9%

Securities

620,66696.9

760,41195.8

168,66126.3

165,980

20.9

Japanese government and corporate bonds
Japanese stocks

37,2375.8

50,0686.3

Foreign securities

235,43536.8

319,985

40.3

Bonds

51,863

8.1

59,918

7.6

Stocks, etc.

183,57128.7

260,067

32.8

Other securities

28.3

179,33228.0

224,376

Loans

̶

̶

̶

̶

Others

2,057

0.3

1,982

0.2

̶

̶

̶

̶

Reserve for possible loan losses
Total¥640,562

100.0%¥793,344

100.0%

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 2015 55

Sony Life Performance Indicators (Non-consolidated)

7- 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,

Interest income and dividends
Gains on sale of securities
Gains on redemption of securities
Valuation gains on securities
Foreign exchange gains, net
Gains on derivatives, net
Other investment income
Losses on sale of securities
Losses on redemption of securities
Devaluation losses on securities
Foreign exchange losses, net
Losses on derivatives, net
Other investment expenses
Net investment gains (losses)

2014

2015

¥ 11,773
16,052
74
143,031
5,036¥ 13,175
17,27516
232,096
8,458

̶

̶

0
680
141
92,255993
103
142,989

̶

̶

̶

̶

̶

221
¥ 82,670

146¥126,789

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

7- 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)

2014

2015

As of March 31,

Balance sheet
amountNet valuation
gains (losses)
recordedin income

Trading-purpose securities¥620,666¥50,776

Balance sheet
amountNet valuation
gains (losses)
recordedin income¥760,411¥89,106

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

Fair value information on monetary trusts
Not applicable

Fair value information on derivative transactions
Not applicable

8 Number of Agencies
As of March 31,

2014

2015

Number of agencies

1,974

1,912

As of March 31,

2014

2015

Office employees[Male][Female]Sales employees[Male][Female]

1,816
[902]
[914]
4,737
[4,678]
[59]

1,924
[925]
[999]
4,857*[4,782][75]

9 Number of Employees and Recruits
9- 01 Number of employees*Number of Lifeplanner sales employees (including those rehired on a fixed-term contract basis after retirement and contracted Lifeplanner sales employees) is
4,329 as of March 31, 2015.

56 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life Performance Indicators (Non-consolidated)

9- 02 Number of recruits
For the years ended March 31,

2014

2015

Office employees

245

254

[Male][48][55][Female]

[197]

[199]

Sales employees

444

419

[Male]

[422]

[388]

[Female]

[22]

[31]

9- 03 Average age and years of service
2014
As of March 31,

Office employees

Average age

2015
Average yearsof service

Average age

Average yearsof service

39.9

8.9

39.7

8.4

[Male][41.9][11.4][41.6][11.2][Female][37.9][6.4][38.1]

[5.9]

45.5

10.2

45.6

10.4

[Male][45.6][10.3][45.7][10.5][Female][40.3][2.4][40.4][2.2]

Sales employees

10 Average Salary
10- 01 Average salary (office employees)(Thousands of yen)

For the years ended March 31,

2014

2015

Office employees

¥399

¥395

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

10- 02 Average compensation (sales employees)(Thousands of yen)

For the years ended March 31,

2014

2015

Sales employees

¥594

¥656

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 2015 57

Sony Assurance

Financial Data
Balance Sheets

Sony Assurance Inc.
As of March 31, 2014 and 2015
(Millions of yen, %)2014
Amount2015
Composition

AmountComposition

Change4.84%¥ 10,738

6.80%¥ 3,826

70.80

10,563

2.24

434

4.49

(1,198)

12.22

843

Assets:Cash and deposits
Cash

¥

6,912
0

0

Deposits

6,911

10,738

Securities

101,245

70.94

111,809

Japanese government bonds

79,68585,698Japanese municipal bonds

11,57915,218Japanese corporate bonds

7,661

6,760

Japanese stocks

1,016

2,548

Foreign securities

197

197

Other securities

1,105

1,385

Tangible fixed assets

3,105

Buildings

2.18

3,539

243

228

Construction in progress

947

1,666

Other tangible fixed assets

1,914

1,644

Intangible fixed assets

8,283

5.80

7,084

Software

5,318

3,949

Software in progress

2,963

3,134

Other intangible fixed assets
Other assets

1
18,4500
12.93

19,294

Accrued premiums

1,250

1,265

Due from reinsurers

1093

Due from foreign reinsurers

922

12,304

12,931

Accrued income

132

135

Deposits

448

446

Accounts receivable

Suspense payments
Deferred tax assets
Total Assets

58 Sony Financial Holdings Inc. Financial Data Book 2015

4,294
4,716
¥142,714

4,399
3.31
100.00%5,452¥157,919

3.45
100.00%735¥15,204

Sony Assurance Financial Data

(Millions of yen, %)

2014

2015

AmountComposition

AmountComposition

Change¥110,741

77.60%¥122,173

77.36%¥11,432

Liabilities:
Underwriting reserves
Reserve for outstanding losses

32,698Underwriting reserves

78,043

Other liabilities

8,543

35,66586,5085.99

8,787

Due to reinsurers67

Due to foreign reinsurers

16

11

Income taxes payable

2,159

2,005

5.56

244

78

Deposits received

12

15

Accounts payable

2,364

2,678

Suspense receipt

3,923

3,997

Reserve for employees’ retirement benefits

969

0.68

1,130

0.72

160

Reserve for directors’ retirement benefits

22

0.02

33

0.02

11

Reserve for employees’ bonuses

918

0.64

927

0.59

9

Reserve for price fluctuations and others

101

0.07

124

0.08

22
11,882

Reserve for price fluctuations
Total Liabilities

101

124

121,295

84.99

133,178

84.33

Common stock

20,00014.01

20,00012.66

Capital surplus

20,00014.01

20,000

12.66

Net Assets:

Capital reserve

20,000Retained deficits(18,828)

Other retained deficits
Unappropriated retained deficits
Total shareholders’ equity
Net unrealized gains (losses) on other securities,
net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

20,000(13.19)(16,610)(18,828)(16,610)(18,828)(16,610)(10.52)

2,217

21,171

14.84

23,389

14.81

2,217

246

0.17

1,351

0.86

1,105
1,105

246

0.17

1,351

0.86

21,41815.01

24,741

15.67

3,322

¥142,714

100.00%¥157,919

100.00%¥15,204

Sony Financial Holdings Inc. Financial Data Book 2015 59

Sony Assurance Financial Data

Statements of Income

Sony Assurance Inc.
For the years ended March 31, 2014 and 2015
(Millions of yen)

Ordinary Revenues
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums

2014

2015

Change¥89,864¥93,022¥3,157

88,63991,761

3,121

88,60091,712

3,111

39

48

9

̶

0

0

1,198

1,235

36

1,209

1,268

58

Gains on sale of securities

25

15

(9)

Gains on redemption of securities

3

̶

(3)

(39)

(48)

(9)

25

25

(0)
1,952

Other underwriting income
Investment income
Interest income and dividends

Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary Expenses

86,86088,812

Underwriting expenses

65,46965,668198

Net losses paid

46,18345,985(197)

Loss adjustment expenses

6,367

6,857

489

Net commissions and brokerage fees

1,387

1,392

4

Provision for reserve for outstanding losses

4,098

2,966

(1,131)

Provision for underwriting reserves

7,433

8,465

1,032

0

0

0

Other underwriting expenses
Investment expenses

7

1

(6)

Losses on sale of securities

5

1

(4)

Losses on redemption of securities

2

̶

(2)

21,37823,135

1,756

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

4

7

3

3,003

4,209

1,205

Extraordinary Gains

̶

̶

̶

Extraordinary Losses

106

503

396

Losses on sale or disposal of fixed assets

85

480

394

Provision for reserve for price fluctuations and others

21

22

1

21

22

1

Income Before Income Taxes

2,897

3,706

808

Income Taxes̶Current

1,916

2,639

722

Income Taxes̶Deferred(683)(1,166)(483)

Provision for reserve for price fluctuations

Total Income Taxes
Net Income

60 Sony Financial Holdings Inc. Financial Data Book 2015

1,232

1,472

239

¥ 1,664¥ 2,233¥ 569

Sony Assurance Financial Data

Statements of Changes in Net Assets
Sony Assurance Inc.
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014
Valuation and Translation
Adjustments

Shareholders’ Equity
Capital surplus

Retained deficits
Otherretained
deficits
Total
retained
deficits

Total
shareholders’equityNet unrealized
gains (losses)
on othersecurities,
net of taxes

Totalvaluation andtranslation
adjustments

Total
Net Assets

Commonstock

Capitalreserve

Total
capital surplus

Unappropriated retained
deficits¥20,000¥20,000¥20,000¥(20,492)¥(20,492)¥19,507

¥ 426

¥ 426

¥19,934

Net income

̶

̶

̶

1,664

1,664

1,664

̶

̶

1,664

Net changes of
items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

(179)

(179)

(179)

̶

̶

̶

1,664

1,664

1,664

(179)

(179)

1,484

¥20,000¥20,000¥20,000¥(18,828)¥(18,828)¥21,171

¥ 246

¥ 246

¥21,418

Balance at the beginningof the period
Changes during
the period

Total changes during
the period
Balance at the endof the period(Millions of yen)

2015
Valuation and Translation
Adjustments

Shareholders’ Equity
Capital surplus

Retained deficits
Other retained
deficits

UnappropriTotal
ated retained
capital surplus
deficits

Total
retained
deficits

Total
shareholders’equityNet unrealized
gains (losses)
Total
on othervaluation andsecurities,
translation
net of taxes
adjustments

Commonstock

Capitalreserve¥20,000¥20,000¥20,000¥(18,828)¥(18,828)¥21,171

¥ 246

¥ 246

¥21,418

̶

̶

̶

(16)

(16)

(16)

̶

̶

(16)

20,00020,00020,000(18,844)(18,844)

21,155

246

246

21,402

Net income

̶

̶

̶

2,233

2,233

2,233

̶

̶

2,233

Net changes of
items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

1,105

1,105

1,105

̶

̶

̶

2,233

2,233

2,233

1,105

1,105

3,338

¥20,000¥20,000¥20,000¥(16,610)¥(16,610)¥23,389¥1,351¥1,351¥24,741

Balance at the beginningof the period
Cumulative effects
of changes inaccounting policies
Restated balanceat the beginning of
the period

Total
Net Assets

Changes during
the period

Total changes during
the period
Balance at the endof the periodSony Financial Holdings Inc. Financial Data Book 2015 61

Sony Assurance Financial Data

Statements of Cash Flows
Sony Assurance Inc.
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014

2015

ChangeIncome before income taxes¥ 2,897¥ 3,706

Depreciation and amortization

2,137

2,480

342

Increase (decrease) in reserve for outstanding losses

4,098

2,966

(1,131)

Increase (decrease) in underwriting reserves

1,032

Cash flows from operating activities
¥

808

7,433

8,465

Increase (decrease) in reserve for employees’ retirement benefits

119

137

17

Increase (decrease) in reserve for directors’ retirement benefits

(31)

11

42

Increase (decrease) in reserve for employees’ bonuses

161

9

(151)

Increase (decrease) in reserve for price fluctuations

21

22

1

Interest income and dividends(1,209)(1,268)(58)(Gains) losses on securities

(21)

(14)

6

(Gains) losses on tangible fixed assets

85

10

(74)

(Gains) losses on intangible fixed assets

̶

469

469

(970)

(840)

130

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

(3)

435

438

Subtotal

14,718

16,592

1,874Interest and dividends received

1,396

1,471

74

201

(2,795)(2,997)

16,315

15,268(1,047)Purchases of securities(30,964)(36,277)(5,312)

Proceeds from sale and redemption of securities

18,891

27,346

8,454

Total of net cash provided by (used in) investment transactions(12,072)(8,930)3,141[Total of net cash provided by (used in) operating activities and investment transactions][4,243][6,337][2,094]Purchases of tangible fixed assets(2,169)

(953)

1,216

Others, net(2,674)(1,277)

1,397

Net cash provided by (used in) investing activities(16,916)(11,161)

5,755

̶

̶

̶

̶

̶

̶

(600)

4,106

4,707

Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
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

62 Sony Financial Holdings Inc. Financial Data Book 2015

8,617

8,017

(600)

¥ 8,017¥ 12,124¥ 4,106

Sony Assurance Financial Data

1 Loans by Borrower Category(Millions of yen)

As of March 31,

2014

2015

¥̶

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Normal 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 andresults 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 and loans with a concessionary interest rate, as well as loans with renegotiated conditions in favor of the borrower, including renegotiated schedule and/or waivers, in eachcase, other than the loans described in notes 1. and 2. above.
4. Normal loans Normal loans are all other loans.

2 Risk-monitored Loans(Millions of yen)

As of March 31,

2014

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

2015

¥̶

¥̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

Notes: 1. Bankrupt loans There are 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 reasonsand on which accrued interest income is not recorded. Of these, bankrupt loans are loans with reasons defined under Article 96-1-3, i through v(allowed limits for uncollectible accounts) of the Order for Enforcement of the Corporation Tax Act (Enforcement Order 97 of 1965), or 96-1-4 of thesame order.
2. Non-accrual delinquent loans Non-accrual delinquent loans are loans on which accrued interest income is not recorded, excluding bankrupt loans
and loans on which interest payments are deferred in order to support the borrowers’ recovery from financial difficulties.
3. Past due loans (3 months or more) Past due loans are loans to which the repayments of principles of interests are past due date over 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 theoriginal interest rate, deferral of interest payments, extension of principal repayments or debt waiver) in order to support the borrowers’ recovery fromfinancial difficulties, excluding loans described in notes 1. to 3. above.

3 Assets and Liabilities
3- 01 Securities(Millions of yen, %)2014
As of March 31,

Japanese government bonds
Japanese municipal bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Total

2015

AmountComposition

AmountComposition¥ 79,685
11,579
7,661
1,016
197
1,105
¥101,245

78.7%
11.4
7.6
1.0
0.2
1.1
100.0%¥ 85,698
15,218
6,760
2,548
197
1,385
¥111,809

76.6%
13.6
6.0
2.3
0.2
1.2
100.0%

3- 02 Yield on securities (yield on investments)(%)

For the years ended March 31,

2014

2015

Japanese government and corporate bonds
Japanese stocks
Foreign securities
Other securities
Total
Yield on investments
Reference: Yield on investments (market value basis)

1.25%

1.19%

̶

̶

2.41
0.06
1.24%
1.26
0.99

3.04
0.04
1.17%
1.19
2.61

Sony Financial Holdings Inc. Financial Data Book 2015 63

Sony Assurance Financial Data

3- 03 Balance of securities by remaining period(Millions of yen)2014
As of March 31,

Japanese government bonds
Japanese municipal bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Total

Less than
1 yearOver 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(including nofixed maturity)¥11,242
2,203
1,668

¥ 6,837
3,057
923¥ 9,001
2,334
1,399

¥ 9,972
2,276
1,760

¥ 96
91
452

̶

̶

̶

̶

̶

¥42,535
1,617
1,457
1,016

̶

̶

̶

102

94

̶

̶

̶

̶

̶

̶

¥15,113¥10,817¥12,735¥14,111

¥735

1,105
¥47,731

Total¥ 79,685
11,579
7,661
1,016
197
1,105
¥101,245(Millions of yen)2015
As of March 31,

Japanese government bonds
Japanese municipal bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Total

Less than
1 yearOver 1 year, Over 3 years, Over 5 years, Over 7 years, Over 10 years
not exceeding not exceeding not exceeding not exceeding (including nofixed maturity)
10 years
7 years
5 years
3 years¥3,425
1,975
504¥ 9,761
3,894
1,106

¥20,688
5,261
2,311

¥4,930
1,522
1,078

̶
̶

¥ 97
1,147
302

¥46,795
1,417
1,457
2,548

̶

̶

̶

̶

̶

102

̶

95

̶

̶

̶

̶

̶

̶

¥5,905¥14,762¥28,363¥7,531¥1,642

1,385¥53,603

Total¥ 85,698
15,218
6,760
2,548
197
1,385
¥111,809

3- 04 Policy reserves and others
Reserve for outstanding losses(Millions of yen)

As of March 31,

2014

2015

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Others
Total

¥

¥

3
108
575
31,575
435

0
135
690
34,369469

̶̶

¥32,698¥35,665

Underwriting reserves(Millions of yen)

As of March 31,

2014

2015

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
OthersTotal¥¥

64 Sony Financial Holdings Inc. Financial Data Book 2015

352
91
34,35841,754
1,486

388
14
38,78445,6901,630

̶̶

¥78,043¥86,508

Sony Assurance Financial Data

Breakdown of the balance of underwriting reserves(Millions of yen)2014
As of March 31,

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Others
Total

Unearnedpremium
reserve¥

Catastrophe
reserve

320
81
32,09635,528
1,486¥

Contingency
reserve

31
9
2,185
6,225

Reserve forpolicyholders’dividends

Refundreserve

¥ 0

¥̶

¥̶

̶

̶

̶

72

4

̶

̶

̶

̶

Total

¥

352
91
34,35841,754
1,486

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥69,514¥8,451

¥73

¥4

¥̶

¥78,043(Millions of yen)2015
As of March 31,

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Others
Total

Unearnedpremium
reserve¥

Catastrophe
reserve353
836,23136,853
1,630¥

Contingency
reserve

Reserve forpolicyholders’dividends

Refundreserve

34
5
2,469
8,836

¥ 0

¥̶

¥̶

̶

̶

̶

81

2
0

̶

̶

̶

̶

̶

̶

̶

Total

¥

388
14
38,78445,690
1,630

̶

̶

̶

̶

̶

̶

¥75,077¥11,344

¥82

¥3

¥̶

¥86,508

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,

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

2014

2015

Standard 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 those whose principal insurance is pertaining to such classes of insurance.
2. The calculation method is described for refund reserve for insurance due reserves and deposits of premiums because the concept of a calculation
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 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 thanpolicies as defined in Article 68 Paragraph 2 of the Order for Enforcement of the Insurance Business Act of Japan, and underwriting reserves andrefund reserves for policies of which terms started before July 1, 2001.
(3) Unearned premiums for policies of which terms started after July 1, 2001.

3- 06 Other reserves(Millions of yen)
2013

2014
For the year ended March 31,

Reserve for possible loan losses
General reserve for possible loan losses
Specific reserve for possible loan losses
Reserve for loan losses from borrowers in specific foreign countries
Total
Reserve for directors’ retirement benefits
Reserve for employees’ bonuses
Reserve for price fluctuations

Decrease

As ofMarch 31,

Increase

Specific

¥ ̶

¥ ̶

¥ ̶

¥ ̶

¥ ̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

53
756
80

10
918
21

41
756

̶

̶

̶

22
918
101

Other

̶

As of
March 31,Sony Financial Holdings Inc. Financial Data Book 2015 65

Sony Assurance Financial Data

(Millions of yen)

2014

2015
For the year ended March 31,
Decrease

As ofMarch 31,

Increase

Specific

¥ ̶

¥ ̶

¥ ̶

¥ ̶

¥ ̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

22
918
101

11
927
22

̶

̶

33
927
124

Reserve for possible loan losses
General reserve for possible loan losses
Specific reserve for possible loan losses
Reserve for loan losses from borrowers in specific foreign countries
Total
Reserve for directors’ retirement benefits
Reserve for employees’ bonuses
Reserve for price fluctuations

Other

918

̶

̶

̶

As of
March 31,

4 Profit and Loss
4- 01 Gains (losses) on sale of securities and devaluation losses on securities(Millions of yen)

2014
For the years ended March 31,

2015

Gains onsales

Losses on
sales

Devaluation
lossesGains onsales

Losses on
sales

Devaluation
losses

¥25

¥5

¥̶

¥15

¥1

¥̶

̶

̶

̶

̶

̶

̶

Japanese government bonds, etc.
Japanese stocks
Foreign securities
Total

̶

̶

̶

̶

̶

̶

¥25

¥5

¥̶

¥15

¥1

¥̶

4- 02 Gains (losses) on trading securities
Not applicable

4- 03 Operating expenses (including loss adjustment expenses)(Millions of yen)

For the years ended March 31,

2014

2015

Personnel expenses¥ 8,511¥ 8,867

Non-personnel expenses

18,571

20,453

662

672

Taxes
Contribution to fire prevention and traffic accident prevention0

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

Net commissions and brokerage fees
Total

1,387

1,392

¥29,133¥31,384

Note: The total of operating expenses above includes loss adjustment expenses, operating, general and administrative expenses, and net commissions andbrokerage fees for the statements of income of Sony Assurance.

4- 04 Losses on sale or disposal of fixed assets(Millions of yen)

2014
For the years ended March 31,

Gains

2015
Losses

Gains

LossesLand and buildings

¥̶

¥̶

¥̶

Other tangible fixed assets

̶

85

̶

Intangible fixed assets

̶

̶

̶

469

Total

¥̶

¥85

¥̶

¥480

66 Sony Financial Holdings Inc. Financial Data Book 2015¥81

Sony Assurance Financial Data

5 Fair Value Information, etc.
5- 01 Securities
Trading-purpose securities
Not applicable

Held-to-maturity securities(Millions of yen)2014
As of March 31,

2015

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference¥73,217¥77,844¥4,626¥68,986¥77,952¥8,965

197

216

18

197

222

24

73,41478,0604,645

69,18378,174

8,990

873

869

(3)

̶

̶

̶
̶

Fair value is higher than balance sheet amountJapanese government and corporate bonds
Foreign securities
Subtotal
Fair value is lower than balance sheet amountJapanese government and corporate bonds
Foreign securities
Subtotal
Total

̶

̶

̶

̶

̶

873

869

(3)

̶

̶

̶

¥74,288¥78,930¥4,642¥69,183¥78,174¥8,990Stock of subsidiaries and affiliated companies
Not applicable

Available-for-sale securities(Millions of yen)

2014

2015

Balance sheet
amountAcquisition
cost

Difference¥19,414¥19,341

1,016

729

̶

Balance sheet
amountAcquisition
cost

¥ 73

¥30,042¥29,951

286

2,548

729

1,819

̶

̶

̶

̶

̶

20,43020,071359

32,59130,681

1,910

5,421

5,425

(3)

8,648

8,658

(10)

̶

̶

̶

̶

̶

̶

Others

1,105

1,105

̶

1,385

1,385

̶

Subtotal

6,526

6,530

(3)

10,033

10,044(10)¥26,957¥26,601¥356¥42,625¥40,725¥1,899As of March 31,

Difference

Balance sheet amount is higher thanacquisition cost
Japanese government and corporate bonds
Japanese stocks
OthersSubtotal¥

91

Balance sheet amount is lower thanacquisition cost
Japanese government and corporate bonds
Japanese stocks

Total

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

2014
For the year ended March 31,

Amountof salesJapanese government and corporate bonds¥4,121

2015

Total gains
on salesTotal losses
on salesAmountof salesTotal gains
on salesTotal losses
on sales¥25¥5¥6,952¥15¥1Sony Financial Holdings Inc. Financial Data Book 2015 67

Sony Assurance

Performance Indicators of Sony Assurance
1 Principal Indicators of Operating Performance(Millions of yen)

For the years ended March 31,

2011

2012

2013

2014

2015

Net premiums written¥73,343¥79,141¥83,582¥88,600¥91,712Year-on-year change

8.8%

7.9%

5.6%

6.0%

3.5%

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

1,469

2,109

1,398

1,874

3,044

(25.8%)

43.5%(33.7%)

34.0%

62.4%

74,16680,09684,71189,86493,022

8.8%

8.0%

5.8%

6.1%

3.5%

2,144

2,859

2,371

3,003

4,209

(16.4%)

33.3%(17.1%)

26.7%

40.1%

1,297

1,299

1,454

1,664

2,233

(19.2%)

0.2%

11.9%

14.4%

34.2%

Net loss ratio

60.0%

63.3%

63.2%

59.3%

57.6%

Net expense ratio

25.5%

25.7%

26.0%

25.6%

26.7%

784

873

1,027

1,209

1,268

Interest income and dividends
Year-on-year change
Yield on investments (income basis)

13.9%

11.4%

17.6%

17.7%

4.9%

0.95%

0.98%

1.09%

1.17%

1.10%

Yield on investments (realized basis)

0.97%

1.01%

1.11%

1.19%

1.11%

Securities

80,60884,47488,670101,245

111,809

̶

̶

̶

̶

̶

Loans
Underwriting reserves

64,07367,37170,60978,04386,508

Common stock

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

400,000

400,000

400,000

400,000

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

16,77218,00919,934

21,41824,741

Total assets

109,382

118,612

127,421

142,714

157,919

̶

̶

̶

̶

̶

15.3%

15.2%

15.6%

15.0%

15.7%

Assets accounted for as deposit premium accounts
Capital adequacy ratio

̶

̶

̶

̶

̶

981.4%

557.8%

504.2%

527.6%

629.6%

922

979

1,079

1,090

1,119

Dividend payout ratio
Non-consolidated solvency margin ratio
Number of employees

Note: The laws and regulations concerning the calculation of the non-consolidated solvency margin ratio have been revised, and a new calculation method has
been applied from the year ended March 31, 2012. Accordingly, figures for the non-consolidated solvency margin ratio cannot be compared simply on a
year-on-year basis.

2 Underwriting Performance2- 01 Direct premiums written(Millions of yen, %)2014
For the years ended March 31,

AmountFire¥

Marine2015

Composition

YoY change

275

0.3%

16.4%

̶

̶

̶

Amount¥Composition

YoY change

332

0.4%

21.0%

̶

̶

̶

Personal accident

8,360

9.6

5.8

8,576

9.5

2.6

Voluntary automobile

78,73590.1

5.8

81,58590.2

3.6

Compulsory automobile liability

̶

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

̶

100.0%

5.9%¥90,495

100.0%

3.6%

4.8%

¥

Total

¥87,370

Direct net premiums written per employee

¥

80

80

Notes: 1. Direct premiums written = Direct premiums written – (Returned premiums based on cancellations + Other returned premiums)
2. Direct net premiums written per employee = Direct net premiums written / Number of employees
3. Sony Assurance has no deposits of premiums.

68 Sony Financial Holdings Inc. Financial Data Book 2015

0.9%

Performance Indicators of Sony Assurance

2- 02 Net premiums written(Millions of yen, %)2014
For the years ended March 31,

AmountFire¥

Marine2015

Composition

YoY change

104

0.1%

19.9%

153

0.2

8.0

Amount¥Composition

YoY change

45

0.0%

(56.4%)

1100.1(27.9)

Personal accident

8,613

9.7

5.8

8,845

9.6

2.7

Voluntary automobile

78,47388.6

5.8

81,37588.7

3.7

Compulsory automobile liability

1,255

1.4

16.8

1,335

1.5

6.4

̶

̶

̶

̶

̶

̶

100.0%

6.0%

100.0%

3.5%

OthersTotal¥88,600¥91,712

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

2- 03 Net losses paid, net loss ratio(Millions of yen, %)2014
For the years ended March 31,

AmountFire¥

Marine2015

Composition

Net loss ratio

3

0.0%

12.1%

129

0.3

84.3

Amount¥Composition

Net loss ratio

3

0.0%

45.3%

90

0.2

81.7

Personal accident

2,066

4.5

27.2

2,265

4.9

28.7

Voluntary automobile

42,86092.8

62.4

42,41492.2

60.2

Compulsory automobile liability

1,123

2.4

89.5

1,212

2.6

90.8

̶

̶

̶

̶

̶

̶

100.0%

59.3%

100.0%

57.6%

OthersTotal¥46,183¥45,985

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

2- 04 Expenses and net expense ratio related to underwriting(Millions of yen)

For the years ended March 31,

2014

2015

Expenses related to underwriting¥22,681¥24,446

Operating, general and administrative expenses related to underwriting

21,29323,053

Net commissions and brokerage fees

1,387

1,392

25.6%

26.7%

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,

2014

2015

Underwriting income¥88,639¥91,761

Underwriting expenses

65,46965,668Operating, general and administrative expenses

21,29323,053

Other income (expenses)
Underwriting profit(1)5¥ 1,874¥ 3,044

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

Sony Financial Holdings Inc. Financial Data Book 2015 69

Performance Indicators of Sony Assurance

Underwriting profit by type of policy(Millions of yen)

For the years ended March 31,

2014

2015

Fire

¥

¥

Marine

(51)

(18)

14

64

Personal accident

(204)

(298)

Voluntary automobile

2,116

3,296

Compulsory automobile liability̶̶

Others̶̶¥1,874¥3,044Total

2- 06 Net loss ratio, net expense ratio and combined ratio
(%)

2014
For the years ended March 31,

Net loss
ratio

Fire

12.1%

2015

Net expense
ratio

Combined
ratio

40.9%

53.0%

Net loss
ratio

45.3%

Net expense
ratio

Combined
ratio

23.0%

68.4%

Marine

84.3

3.7

88.0

81.7

4.1

85.8

Personal accident

27.2

26.1

53.3

28.7

23.4

52.0

Voluntary automobile

62.4

26.0

88.3

60.2

27.5

87.7

Compulsory automobile liability

89.5

̶

89.5

90.8

̶

90.8

Others

̶

̶

̶

̶

̶

̶

Total

59.3%

25.6%

84.9%

57.6%

26.7%

84.3%

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

3 Asset Management
3- 01 Asset management policy
The goal is to assure stable mid- to long-term returns taking into consideration the market environment and asset management risk, as wellas current level and future fluctuations of interest rates.
Investments are primarily made with Japanese yen-denominated bonds. Investments are also made based upon the consideration ofdiversification of timing of investments as well as the timing of re-investments. Thus, the investment portfolio is built in such a way thatstable returns are assured.

3- 02 Overview of asset management(Millions of yen, %)2014
As of March 31,

Cash and deposits
Call loans

Amount

¥

6,911
̶

2015
Composition

4.8%
̶

Amount¥ 10,738
̶Composition

6.8%
̶

Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for transactions in debentures

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Monetary trusts
Securities
Loans
Land and buildings

̶

̶

̶

̶

101,24570.9

111,809

70.8

̶

̶

̶

̶

243

0.2

228

0.1

Total

108,400

76.0

122,775

77.7

Total assets¥142,714

100.0%¥157,919

100.0%

70 Sony Financial Holdings Inc. Financial Data Book 2015

Performance Indicators of Sony Assurance

3- 03 Interest income and dividends, yield on investments (income basis)(Millions of yen, %)

2014

2015

For the years ended March 31,

AmountYield

AmountYield

Cash and deposits
Call loans
Bond trading with repurchase agreement
Bonds paid for transactions in debentures
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Loans
Land and buildings
Subtotal
Others
Total
Yield on investments (realized basis)
Reference: Yield on investments (market value basis)

¥

1

0.02%

¥

1

0.02%

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,208

1.24

1,266

1.17

̶

̶

̶

̶

̶

̶

̶

̶

1,209
0
¥1,209

1.17

1,268
0
¥1,268

1.10

1.19%
0.93

1.11%
2.44

Notes: 1. Total revenues are equal to interest income and dividends of the statements of income of Sony Assurance.
2. In principle, the average balance of investments is calculated by adding either acquisition cost or amortized cost at the end of each month, then divided
by 12.
3. Calculation method for yield on investments(1) Yield on investments (income basis)
The results of investment in assets are indicated as income revenues (interest income and dividends). Interest income and dividends 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 (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealized gains is the numerator, and market value isthe 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 according to the acquisition cost or amortized cost + Net unrealized gains on other securities at end of previous
period**Amounts before tax deductions

3- 04 Overseas investment(Millions of yen, %)2014
As of March 31,

Foreign currency denominatedForeign bonds
Foreign stocks
OthersSubtotal
Yen denominated
Loans to borrowers outside Japan
Foreign bonds
OthersSubtotal
Total
Yield on overseas investments
Yield on investments (income basis)
Yield on investments (realized basis)
Reference: Yield on investments (market value basis)

2015

AmountComposition

Amount

¥ ̶

̶%

¥ ̶

̶%

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Composition

̶

̶

̶

̶

197

100.0

197

100.0

̶

̶

̶

̶

197
¥197

100.0
100.0%

197
¥197

100.0
100.0%

2.41%
2.41%
2.41%

3.04%
3.04%
3.04%

Notes: 1. Yield on investments (income basis) within “Yield on overseas investments” is calculated by dividing interest income and dividends by the averagebalance of either the acquisition cost or amortized cost for assets relating to overseas investments.
2. Yield on investments (realized basis) within “Yield on overseas investments” is calculated by dividing (investment income + interest and dividends on
deposits of premiums – investment expenses) by the average balance of either the acquisition cost or amortized cost for assets relating to overseas
investments.

Sony Financial Holdings Inc. Financial Data Book 2015 71

Performance Indicators of Sony Assurance

4 Non-consolidated Solvency Margin Ratio(Millions of yen)

As of March 31,

2014

2015

(A) Total non-consolidated solvency margin¥30,118¥36,650

21,171

23,389Reserve for price fluctuations

101

124

Contingency reserve

73

82

Catastrophe reserve

8,451

11,344̶̶

Capital or treasury

General reserve for possible loan losses
Net unrealized gains on other securities (before subtracting tax effects)

320

1,709

Net unrealized gains on real estate̶̶

Excess refund reserve̶̶

Subordinated debt̶̶

The portion of the excess refund reserve and subordinated debt that is not included in the margin̶̶

Deductible items̶̶

Others̶̶(B) Total non-consolidated risk
(R1 + R2)2 + (R3 + R4)2 + R5 + R6

11,416

11,641

Ordinary insurance risk

R1

10,386

10,465

Third-sector insurance risk

R2

̶

̶

Assumed interest rate risk

R3

77

86

Asset management risk

R4

662

1,101

Business management risk

R5

353

371

Major catastrophe risk

R6

649

737

527.6%

629.6%(C) Non-consolidated solvency margin ratio[(A)/{(B) × (1/2)}] × 100

Note: The figures were 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 of 1996.

• Breakdown of non-consolidated solvency margin
1. Capital or treasury
Net assets of the balance sheet, excluding the amount of expected outflow from the company, such as dividends to shareholders anddirectors’ bonuses, deferred tax assets, and the amount of valuation and translation adjustments.
2. Reserve for price fluctuations
The reserve for price fluctuations shown on the balance sheet.
3. Contingency reserve
The contingency reserve included in underwriting reserves shown on the balance sheet.
4. Catastrophe reserve
The total amount of both the catastrophe reserve and the catastrophe reserve concerning residential earthquake insurance that areincluded in underwriting reserves shown on the balance sheet.
5. Reserve for possible loan losses
The general reserve for possible loan losses included in the reserve for possible loan losses shown on the balance sheet. This does not
apply to Sony Assurance.
6. Net unrealized gains on other securities
Net unrealized gains on other securities (marketable securities other than securities held for trading purposes, held-to-maturity
securities, stock of subsidiaries and affiliated companies).
7. Net unrealized gains on real estate
Net unrealized gains on real estate, representing the difference between the fair value of land, leaseholds and other properties and theirrespective balance sheet amount (amounts shown on the balance sheet). This does not apply to Sony Assurance.
8. Excess refund reserve
Excess refund reserve refers to the surplus refund reserve included in underwriting reserves shown on the balance sheet. 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 through other meansthat meet a certain set of conditions. This does not apply to Sony Assurance.
10. Deductible items
If an insurance company owns the stock of other insurance companies, financial institutions or possesses other such means of raisingfunds, and that ownership qualifies as “intentional possession” as governed by the overall supervisory guidelines for insurancecompanies, then those funds must be deducted from the non-consolidated solvency margin. This does not apply to Sony Assurance.
11. Others
Others refers to deferred tax assets related to other retained deficits included in the net assets section of the balance sheet. This does
not apply to Sony Assurance.

72 Sony Financial Holdings Inc. Financial Data Book 2015

Performance Indicators of Sony Assurance

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 to pay in the event of a major
catastrophe or a dramatic drop in the value of the assets they hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table) indicates dangers outside the general scope of expectations. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s 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 non-consolidated solvency margin, as indicated by (A)).

Non-consolidated Solvency Margin Ratio (%) =Ability to pay, indicated by such factors as capital and reserves
× 100
Risk events outside the normal scope of expectations × 1/2• “Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks:
Insurance underwriting risk (ordinary insurance risk, third-sector insurance risk)
Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risk)
Assumed interest rate risk
Risk that actual investment yield will fall below the investment yield assumed when calculating premiums
Asset management risk
Risk arising from such factors as unexpectedly large fluctuations in prices on held securities and other assets
Business management risk
Unexpected risk to business management other than through above andMajor catastrophe risk
Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)• A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital and reserves, is thetotal of the insurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve for pricefluctuations 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 to supervise
insurers. If this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

Sony Financial Holdings Inc. Financial Data Book 2015 73

Sony Bank

Financial Data (Consolidated)
Consolidated Balance Sheets
Sony Bank Inc. and consolidated subsidiaries
As of March 31, 2014 and 2015

(Millions of yen)

2014

2015

Cash and due from banks¥ 174,865¥ 101,248

Call loans and bills bought

6,000

6,000

Monetary trusts

20,48423,565

Securities

771,760

727,962

1,057,419

1,187,187

Foreign exchanges

7,752

2,224

Other assets

26,012

21,442

Tangible fixed assets

1,186

1,151

Buildings

263

246

Leased assets

87

58

Other tangible fixed assets

836

846

4,594

4,670

Software

4,412

4,567

Goodwill

179

99

3

3

165

324

(1,527)(1,154)¥2,068,713¥2,074,623

Assets:Loans

Intangible fixed assets

Other intangible fixed assets
Deferred tax assets
Allowance for loan losses
Total Assets

74 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Consolidated)(Millions of yen)

2014

2015

¥1,890,022¥1,878,256

Liabilities:
Deposits
Call money and bills sold

6,000

6,000

Borrowed money

40,00040,000Foreign exchanges
Other liabilities

40

46

56,73170,507

Reserve for employees’ bonuses

658

753

Net defined benefit liability

727

904

Reserve for directors’ retirement benefits

51

67

Provision for reimbursement of deposit̶

23

Provision for point card certificates87−

Deferred tax liabilities

553−

1,994,872

1,996,559

Common stock

31,00031,000Capital surplus

21,00021,000Retained earnings

15,93920,514

Total shareholders’ equity

67,93972,514

Net unrealized gains (losses) on other securities, net of taxes

7,255

6,618

Net deferred gains (losses) on hedging instruments, net of taxes(2,571)(2,269)Total Liabilities
Net Assets:

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income

0

0

(57)

(91)

4,626

4,258

Minority interests

1,275

1,292

Total Net Assets

73,84078,064¥2,068,713¥2,074,623

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2015 75

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2014 and 2015

(Millions of yen)

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 allowance for loan losses
Income from monetary trusts, net
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills soldInterest expenses on borrowed money
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Provision of allowance for loan losses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Losses on sale of shares of subsidiaries and affiliates
Other extraordinary losses
Income Before Income Taxes
Income Taxes̶Current
Income Taxes̶Deferred
Total Income Taxes
Income Before Minority Interests
Minority Interests in Income (Loss)Net Income

2014

2015

¥36,486
26,32814,134
12,077
8
107
0
5,137
4,864
155

¥38,424
26,131
14,07011,960
7
93
0
6,082
5,997
212
0
22
189
31,096
9,543
5,012
6
255
4,268
3,648
135
17,718
50

̶

21
134
30,849
9,078
4,905
6
260
3,905
2,957
1,424
17,090
298
246
52
5,636
12
10

̶

50
7,327
93

̶

̶
̶

60
32

1
5,624
2,462
(244)
2,217
3,407
(42)
¥ 3,449

7,234
2,430
195
2,626
4,608
23
¥ 4,585̶Note: Sony Bank revised its method of recording ordinary revenues and ordinary expenses on hedge transactions in the year ended March 31, 2015. Ordinary
revenues for the year ended March 31, 2014 (actual), have been retroactively adjusted to reflect the change. Consequently, ordinary revenues, on aconsolidated basis, were revised from ¥35,795 million to ¥36,486 million. This adjustment to ordinary revenues was accompanied by an adjustment toordinary expenses in the same amount, on a consolidated basis, and therefore, ordinary profit and net income were unaffected.

Consolidated Statements of Comprehensive Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2014 and 2015

Income Before Minority Interests
Other Comprehensive Income
Net unrealized gains (losses) on other securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of taxes
Comprehensive Income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interests

76 Sony Financial Holdings Inc. Financial Data Book 2015

(Millions of yen)

2014

2015

¥3,407
1,299
719
659
0
(79)
4,706
4,770
(64)

¥4,608
(374)
(636)
302
1
(41)
4,234
4,217
16

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Changes in Net Assets
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014
Shareholders’ Equity
Commonstock

CapitalsurplusRetainedearnings

Total
shareholders’equity¥31,000¥21,000¥12,489¥64,489

Net income

̶

̶

3,449

3,449

Net changes of items other than shareholders’ equity

̶

̶

̶

̶

Total changes during the period

̶

̶

3,449

3,449

Balance at the end of the period¥31,000¥21,000¥15,939¥67,939

Balance at the beginning of the period
Changes during the period(Millions of yen)

2014
Accumulated Other Comprehensive Income

Balance at the beginning of the period

Net unrealized
gains (losses)
on othersecurities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income¥6,536¥(3,231)

¥̶

¥ ̶

̶

̶

̶

̶

Minority
Interests

Total Net
Assets¥3,304¥1,339¥69,134

̶

̶

3,449

Changes during the period
Net income
Net changes of items other thanshareholders’ equity

719

659

0

(57)

1,321

(64)

1,256

Total changes during the period

719

659

0

(57)

1,321

(64)

4,706

Balance at the end of the period¥7,255¥(2,571)

¥0

¥(57)

¥4,626¥1,275¥73,840(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2015 77

Sony Bank Financial Data (Consolidated)

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

2015
Shareholders’ Equity
Commonstock

CapitalsurplusRetainedearnings

Total
shareholders’equity¥31,000¥21,000¥15,939¥67,939

̶

̶

(10)

(10)

31,00021,00015,92867,928Net income

̶

̶

4,585

4,585

Net changes of items other than shareholders’ equity

Balance at the beginning of the period
Cumulative effects of changes in accounting policies
Restated balance at the beginning of the period
Changes during the period

̶

̶

̶

̶

Total changes during the period

̶

̶

4,585

4,585

Balance at the end of the period¥31,000¥21,000¥20,514¥72,514(Millions of yen)

2015
Accumulated Other Comprehensive Income

Balance at the beginning of the period
Cumulative effects of changes
in accounting policies
Restated balance at the beginning of
the period

Net unrealized
gains (losses)
on othersecurities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income¥7,255¥(2,571)

¥ 0

¥(57)

¥4,626¥1,275¥73,840

̶

̶

̶

̶

̶

̶

(10)

7,255

(2,571)

0

(57)

4,626

1,275

73,830

̶

̶

̶

̶

̶

̶

4,585

Minority
Interests

Total Net
AssetsChanges during the period
Net income
Net changes of items other thanshareholders’ equity

(636)

302

0

(34)

(368)

16

(351)

Total changes during the period

(636)

302

0

(34)

(368)

16

4,234

Balance at the end of the period¥6,618¥(2,269)

¥ 0

¥(91)

¥4,258¥1,292¥78,064

78 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Cash Flows
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for loan losses
Increase (decrease) in reserve for employees’ bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for directors’ retirement benefits
Increase (decrease) in provision for reimbursement of deposit
Increase (decrease) in provision for point card certificatesInterest income̶accrual basis
Interest expenses̶accrual basis(Gains) losses on securities(Gains) losses on monetary trusts
Exchange (gains) losses(Gains) losses on disposal of fixed assets(Gains) losses on transfer of businessNet (increase) decrease in loans
Net increase (decrease) in deposits
Net increase (decrease) in borrowed money (excluding subordinated borrowings)
Net (increase) decrease in foreign exchange (assets)
Net increase (decrease) in foreign exchange (liabilities)
Interest income̶cash basis
Interest expenses̶cash basis
Others, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of securities
Proceeds from sale of securities
Proceeds from redemption of securities
Investments in monetary trusts
Purchases of tangible fixed assets
Purchases of intangible fixed assets
Proceeds from transfer of business
OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Net decrease in subordinated borrowings
Payments for leased obligations
Proceeds from securitization of receivables
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

¥

2015

5,624
1,808
̶

79
(114)
39
86
(56)
̶

(10)
(26,328)
9,078
2,908
(21)
(29,375)13
̶

(87,193)
33,46620,000202(47)30,180(9,264)
9,577(39,345)46(39,299)(189,416)
183,378
164,766(2,301)(262)(1,682)
̶(11)
154,470(2,000)(31)(600)(2,631)
3
112,543
62,322¥ 174,865

¥

7,234
1,821
60
79
(142)
94
105
16
23
(22)
(26,131)
9,543(6,917)(22)(27,272)2
32(129,767)(10,749)
̶

5,528
6
29,521(9,221)
17,231(138,945)(3,390)(142,336)(235,739)
107,295
201,026(3,081)(382)(1,129)698
58
68,747
̶

(31)
̶

(31)
3
(73,616)
174,865¥ 101,248

Note: Following a change in accounting procedures in the year ended March 31, 2015, with respect to hedging transactions, Sony Bank reclassified¥2,678 million of interest expenses—accrual basis, negative ¥2,713 million of interest expenses—cash basis, and ¥34 million of others, net in the cash
flows from operating activities section for the year ended March 31, 2014.

Sony Financial Holdings Inc. Financial Data Book 2015 79

Sony Bank

Financial Data (Non-consolidated)
Balance Sheets

Sony Bank Inc.
As of March 31, 2014 and 2015
(Millions of yen)

2014

2015

Assets:Cash and due from banks
Cash
Due from banks
Call loans¥ 171,227¥

96,97828

20

171,198

96,957

6,000

6,000

Monetary trusts

20,48423,565

Securities

773,811730,01396,82382,878Japanese government bonds
Japanese municipal bonds

56,77056,668Japanese corporate bonds

159,524

107,750

Japanese stocks

2,050

2,050

Other securities

458,641

480,665

1,057,419

1,187,187

1,051,697

1,180,420

5,722

6,766

7,752

2,224

7,752

2,224

17,995

13,794

719

325

Loans
Loans on deed
Overdrafts
Foreign exchanges
Due from foreign banks
Other assets
Domestic exchange settlement account debit
Prepaid expenses

123

99

Accrued income

4,195

4,292

100

̶

Derivatives

5,608

4,389

Accounts receivable

3,358

2,640

Others

3,890

2,047

795

774

221

201

0

0

573

573

2,746

2,967

2,743

2,964

2

2

̶

174

Initial margins of futures markets

Tangible fixed assets
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Deferred tax assets
Allowance for loan losses
Total Assets

80 Sony Financial Holdings Inc. Financial Data Book 2015

(1,527)(1,154)¥2,056,704¥2,062,525

Sony Bank Financial Data (Non-consolidated)(Millions of yen)

2014

2015

¥1,890,022¥1,878,256

Liabilities:
Deposits
Ordinary deposits

509,503

494,003

Time deposits

1,014,426

1,053,960

Other deposits

366,092

330,293Call money

6,000

6,000

Borrowed money

40,00040,000Borrowed money

40,00040,000Foreign exchanges

40

46

Foreign bills sold

912

Foreign bills payable30

34

46,021

59,735

Income taxes payable

2,284

1,304

Accrued expenses

4,239

4,690

Unearned revenue

̶

5

Initial margins of futures markets

19,84622,315Derivatives

18,624

30,112Other liabilities

Leased obligation
Asset retirement obligations
Others

0

0

120

122

906

1,185

Reserve for employees’ bonuses

598

686

Reserve for employees’ retirement benefits

544

658

Reserve for directors’ retirement benefits

44

53

Provision for reimbursement of deposit̶

23

Provision for point card certificates87̶Deferred tax liabilities568

̶

1,983,929

1,985,461

Common stock

31,00031,000Capital surplus

21,00021,000Capital reserves

21,00021,000Retained earnings

16,091

20,71516,091

20,715

Total Liabilities
Net Assets:

Other retained earnings
Unappropriated retained earnings
Total shareholders’ equity

16,091

20,71568,09172,715Net unrealized gains (losses) on other securities, net of taxes

7,255

6,618

Net deferred gains (losses) on hedging instruments, net of taxes(2,571)(2,269)Total valuation and translation adjustments

4,683

4,348

Total Net Assets

72,77477,064¥2,056,704¥2,062,525

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2015 81

Sony Bank Financial Data (Non-consolidated)

Statements of Income

Sony Bank Inc.
For the years ended March 31, 2014 and 2015
(Millions of yen)

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 allowance for loan losses
Income from monetary trusts, net
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money
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
Losses on redemption of bonds
Expenses from derivatives other than for trading or hedging
General and administrative expenses
Other ordinary expenses
Provision of allowance for loan losses
Write-off of loans
OthersOrdinary Profit
Extraordinary Losses
Impairment losses
Losses on transfer of business
Income Before Income Taxes
Income Taxes̶Current
Income Taxes̶Deferred
Total Income Taxes
Net Income

2014

2015

¥33,994
26,32814,134
12,077
8
107
0
2,645
149
2,496
4,864
2,782
2,045
0
36
155

¥35,714
26,132
14,07011,960
7
93
0
3,372
157
3,215
5,997
3,906
2,090
0

̶

21
134
28,149
9,074
4,905
6
256
3,905
0
2,668
107
2,560
1,424
370
1,053
̶

14,684
297
246
3
47
5,845
̶
̶
̶

5,845
2,460
(200)
2,260
¥ 3,585

̶

212
0
22
189
28,416
9,540
5,012
6
253
4,268
0
3,345
117
3,227
134
30
̶

103
15,346
49
̶

0
48
7,298
93
60
32
7,205
2,418
152
2,571
¥ 4,634

Note: Sony Bank revised its method of recording ordinary revenues and ordinary expenses on hedge transactions in the year ended March 31, 2015. Ordinary
revenues for the year ended March 31, 2014 (actual), have been retroactively adjusted to reflect the change. Consequently, ordinary revenues, on a
non-consolidated basis, was revised from ¥33,303 million to ¥33,994 million. This adjustment to ordinary revenues was accompanied by an adjustment toordinary expenses in the same amount, on a non-consolidated basis, and therefore, ordinary profit and net income were unaffected.

82 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Bank Inc.
For the years ended March 31, 2014 and 2015

(Millions of yen)

2014
Shareholders’ Equity
Capital surplus
Other retained
earnings
Commonstock

Capitalreserve¥31,000

Net income
Net changes of items otherthan shareholders’ equity
Total changes during the period
Balance at the end of the period

Balance at the beginning of
the period

Total
capital surplus

Unappropriatedretained earnings

Total
retained earnings¥21,000¥21,000¥12,506¥12,506¥64,506

̶

̶

̶

3,585

3,585

3,585

̶

̶

̶

̶

̶

̶

̶

̶

̶

3,585

3,585

3,585

¥31,000¥21,000¥21,000¥16,091¥16,091¥68,091

Total
shareholders’ equity

Changes during the period(Millions of yen)

2014
Valuation and Translation Adjustments
Net unrealized
gains (losses)
on othersecurities,
net of taxes

Balance at the beginning of the period¥6,536

Net deferredgains (losses)on hedging
instruments,
net of taxes¥(3,231)

Total
valuation andtranslation
adjustments¥3,304Total
Net Assets¥67,811

Changes during the period
Net income
Net changes of items other than shareholders’ equity

̶

̶

̶

3,585

719

659

1,378

1,378

Total changes during the period

719

659

1,378

4,963

Balance at the end of the period¥7,255¥(2,571)¥4,683¥72,774(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2015 83

Sony Bank Financial Data (Non-consolidated)

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

2015
Shareholders’ Equity
Capital surplus

Retained earnings
Other retained
earnings

Common stock

Capital reserve

Total
capital surplus

Unappropriatedretained earnings

Total
retained earnings¥31,000¥21,000¥21,000¥16,091¥16,091¥68,091

̶

̶

̶

(10)

(10)

(10)

31,00021,00021,00016,08016,08068,080Net income

̶

̶

̶

4,634

4,634

4,634

Net changes of items otherthan shareholders’ equity

̶

̶

̶

̶

̶

̶

Total changes during the period

̶

̶

̶

4,634

4,634

4,634

Balance at the end of the period¥31,000¥21,000¥21,000¥20,715¥20,715¥72,715

Balance at the beginning of
the period
Cumulative effects of changes
in accounting policies
Restated balance atthe beginning of the period

Totalshareholders’ equity

Changes during the period(Millions of yen)

2015
Valuation and Translation Adjustments

Balance at the beginning of the period
Cumulative effects of changes in accounting policies
Restated balance at the beginning of the period

Net unrealized
gains (losses)
on othersecurities,
net of taxes

Net deferredgains (losses)on hedging
instruments,
net of taxes

Totalvaluation andtranslation
adjustments¥7,255¥(2,571)¥4,683¥72,774

̶

̶

̶

(10)

7,255

(2,571)

4,683

72,764Total
Net Assets

Changes during the period
Net income
Net changes of items other than shareholders’ equity

̶

̶

̶

4,634

(636)

302

(334)

(334)

Total changes during the period

(636)

302

(334)

4,299

Balance at the end of the period¥6,618¥(2,269)¥4,348¥77,064

84 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Non-consolidated)

1 Loans by Borrower Category(Millions of yen)

As of March 31,

2014

2015

Category
Bankrupt and quasi-bankrupt loans¥

Doubtful loans
Sub-standard loans
Normal loans
Total

847

¥

744

980

899

1,882

1,716

1,064,528

1,186,701¥1,068,238¥1,190,062

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

2 Risk-monitored Loans(Millions of yen)

As of March 31,

2014

2015

Bankrupt loans

¥ 308

¥ 207

Non-accrual delinquent loans

1,403

1,430

̶

̶

Restructured loans

1,880

1,715

Total

¥3,592¥3,353

Past due loans (3 months or more)

3 Profit and Loss
3- 01 Gross operating profit(Millions of yen)

2014
For the years ended March 31,

Domestic
division

Net interest income¥11,372

2015

International
division¥5,938Domestic
division

Total¥17,310¥11,640

International
division¥5,024[13]
Interest income

16,755

9,585

26,328[113]
16,4689,777

26,132[13]
Interest expenses

Total¥16,665

[113]

5,383

3,647

9,017

4,827

4,752

9,466

(99)

76

(22)

(39)

67

27

Fees and commissions received

2,534

110

2,645

3,281

90

3,372

Fees and commissions paid

2,634

34

2,668

3,321

23

3,345

Net trading income

̶

̶

̶

̶

̶

̶

Trading income

̶

̶

̶

̶

̶

̶

Net fees and commissions

̶

̶

̶

̶

̶

̶

(667)

4,108

3,440

835

5,027

5,863

Other operating income

735

4,129

4,864

939

5,057

5,997

Other operating expenses

1,402

21

1,424

103

30

134

Gross operating profit

10,605

10,123

20,72912,436

10,11922,555Gross operating profit ratio

0.71%

2.22%

1.06%

0.81%

2.01%

1.14%

Trading expenses
Net other operating income

Notes: 1. The Domestic division deals with transactions denominated in Japanese yen, whereas the International division deals with transactions denominated inforeign currencies (foreign currency deposits, foreign securities, etc.). Non-resident transactions denominated in Japanese yen are included in theInternational division.
2. Interest expenses exclude estimated interest expenses on monetary trusts (¥57 million̶FY2013, ¥73 million̶FY2014).
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
5. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

Sony Financial Holdings Inc. Financial Data Book 2015 85

Sony Bank Financial Data (Non-consolidated)

3- 02 Average balances, interests, yields and interest spreads of major investment andfinancing accounts

Domestic division(Millions of yen, %)2014
For the years ended March 31,

Investment accounts
Of which, loans
Securities
Call loans
Due from banks
Financing accounts
Of which, deposits
Call money
Borrowed money

Averagebalance

2015

Interest[7,021]¥1,493,116
1,002,013
361,440
6,690
115,951[̶]1,482,812
1,464,357
6,690
31,183Yield[13]¥16,755
14,087
2,538
8
107
[̶]
5,383
2,744
6
256

1.12%
1.40
0.70
0.13
0.09
0.36
0.18
0.10
0.82

Averagebalance

Interest[68,339]¥1,528,827
1,090,738
269,283
6,000
94,463[̶]
1,515,616
1,490,904
6,000
40,000

Yield

[113]
¥16,468
14,008
2,244
7
93
[̶]
4,827
2,478
6
253

1.07%
1.28
0.83
0.12
0.09
0.31
0.16
0.10
0.63

Notes: 1. [ ] indicates the average balance and interest of borrowed funds between the Domestic division and the International division, and the total ispresented in net.
2. In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥2,975 million—FY2013, ¥2,005 million—FY2014) is
excluded. In the financing accounts, the average balance of funds for investing monetary trusts (¥19,419 million—FY2013, ¥21,347 million—FY2014)
and the interest expenses on monetary trusts (¥54 million—FY2013, ¥67 million—FY2014) are excluded, respectively.
3. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

International division(Millions of yen, %)2014
For the years ended March 31,

Investment accounts
Of which, loans
Securities
Call loans
Due from banks
Financing accounts
Of which, deposits
Call money
Borrowed money

Averagebalance

2015
Yield

Averagebalance[̶]¥454,623
3,780
443,006[̶]¥9,585
46
9,538

2.10%
1.22
2.15

[̶]
¥502,476
5,712
489,164[̶]¥9,777
61
9,715

1.94%
1.07
1.98

[7,021]
382,622
376,026

[13]
3,647
2,161

0.95
0.57

[68,339]
417,281349,408

[113]
4,752
2,534

1.13
0.72

1

0

0.57

Interest

̶
̶

̶

̶
̶

̶

̶
̶

̶

Interest

̶
̶

Yield

̶
̶

̶
̶

̶
̶
̶
̶
̶
̶
Notes: 1. [ ] indicates the average balance and interest of borrowed funds between the Domestic division and the International division, and the total ispresented in net.
2. In the financing accounts, the average balance of funds for investing monetary trusts (¥472 million—FY2013, ¥517 million—FY2014) and the interest
expenses on monetary trusts (¥2 million—FY2013, ¥5 million—FY2014) are excluded, respectively.
3. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

Total(Millions of yen, %)2014
For the years ended March 31,

Averagebalance

Investment accounts
Of which, loans
Securities
Call loans
Due from banks
Financing accounts
Of which, deposits
Call money
Borrowed money¥1,940,719
1,005,793
804,446
6,690
115,951
1,858,413
1,840,383
6,690
31,185

2015

Interest

Yield¥26,328
14,134
12,077
8
107
9,017
4,905
6
256

1.35%
1.40
1.50
0.13
0.09
0.48
0.26
0.10
0.82

Averagebalance¥1,962,964
1,096,450
758,447
6,000
94,463
1,864,559
1,840,312
6,000
40,000Interest

Yield¥26,132
14,07011,960
7
93
9,466
5,012
6
253

1.33%
1.28
1.57
0.12
0.09
0.50
0.27
0.10
0.63

Notes: 1. In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥2,975 million—FY2013, ¥2,005 million—FY2014) is
excluded. In the financing accounts, the average balance of funds for investing monetary trusts (¥19,891 million—FY2013, ¥21,865 million—FY2014)
and the interest expenses on monetary trusts (¥57 million̶FY2013, ¥73 million̶FY2014) are excluded, respectively.
2. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

86 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Non-consolidated)

Interest spread

(%)

2014
For the years ended March 31,

Yield on investment
Yield on financing
Interest spread

Domestic
division

2015

International
division

1.12%
0.36
0.75

2.10%
0.95
1.15

Domestic
division

Total

1.35%
0.48
0.87

International
division

1.07%
0.31
0.75

1.94%
1.13
0.80

Total

1.33%
0.50
0.82

Note: As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified toreflect such change.

3- 03 Interest income and interest expenses
Domestic division(Millions of yen)

2014
For the years ended March 31,

Interest income
Of which, loans
Securities
Call loans
Due from banks
Interest expenses
Of which, deposits
Call money
Borrowed money

Increase(decrease)
due to balance

¥

20
1,679
(999)
(4)
55
26
60
(3)
241

2015

Increase(decrease)
due to yield¥ (314)(1,427)
392
(0)
(2)
201
(903)
(0)
(171)

Net increase(decrease)¥(294)
252
(606)
(4)
52
228
(843)
(3)
69

Increase(decrease)
due to balance

¥ 400
1,247
(647)
(0)
(19)
119
49
(0)
72

Increase(decrease)
due to yield¥ (688)(1,326)
353
(0)
5
(674)
(316)
(0)
(75)

Net increase(decrease)¥(287)
(79)
(293)
(0)
(13)
(555)
(266)
(0)
(2)

Notes: 1. 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 isincluded in “due to yield.”
2. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

International division(Millions of yen)

2014
For the years ended March 31,

Increase(decrease)
due to balance

Interest income
Of which, loans
Securities
Call loans
Due from banks
Interest expenses
Of which, deposits
Call money
Borrowed money

2015

Increase(decrease)
due to yield

Net increase(decrease)

Increase(decrease)
due to balance

Increase(decrease)
due to yield

Net increase(decrease)

¥367
26
952

¥ 255
(16)
(276)

¥ 623
10
676

¥1,00823993¥(817)
(8)
(816)

¥ 191
15
176

66
17

872
(565)

939
(547)

330
(152)

774
526

1,105
373

̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

̶
̶
̶
̶
̶
̶
̶
0
0
(0)
(0)
(0)
Notes: 1. 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 isincluded in “due to yield.”
2. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

Total(Millions of yen)

2014
For the years ended March 31,

Interest income
Of which, loans
Securities
Call loans
Due from banks
Interest expenses
Of which, deposits
Call money
Borrowed money

Increase(decrease)
due to balance

¥

523
1,705
(1,617)
(4)
55
151
92
(3)
241

Increase(decrease)
due to yield¥ (143)(1,442)
1,687
(0)
(2)
1,066
(1,483)
(0)
(171)

2015
Net increase(decrease)

¥ 379
262
69
(4)
52
1,218
(1,391)(3)
69

Increase(decrease)
due to balance

¥ 301
1,273
(690)
(0)
(19)
29
(0)
(0)
72

Increase(decrease)
due to yield¥ (497)(1,337)
573
(0)
5
419
107
(0)
(75)

Net increase(decrease)¥(196)
(63)
(116)
(0)
(13)
449
106
(0)
(2)

Notes: 1. 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 isincluded in “due to yield.”
2. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change.

Sony Financial Holdings Inc. Financial Data Book 2015 87

Sony Bank Financial Data (Non-consolidated)

3- 04 General and administrative expenses(Millions of yen)

For the years ended March 31,

2014

2015

¥ 3,323¥ 3,700

Employee retirement benefits

103

117

Fringe benefit expenses

454

496

Depreciation and amortization

1,217

1,192

Leases on land, buildings and machinery

1,004

1,087

Maintenance fees

2,475

2,300

Repairs and utilities

78

Supplies expenses

171

141

Heat, light and water

33

34

Travel expenses

13

8Communication expenses

685

719

Advertising expenses

990

979

Membership fees, donations and social expenses

13

15

1,503

1,731

560

745

Salaries

Outsourcing
Taxes and public dues
Deposit insurance

980

997

Others

1,145

1,069

Total

¥14,684¥15,346

4 Fair Value Information
4- 01 Fair value information on securities
Trading-purpose securities
Not applicable

Held-to-maturity bonds(Millions of yen)

2014
Balance sheet
amountFair value

Japanese government bonds¥7,961

Japanese corporate bonds

360

2015
Difference

Balance sheet
amountFair value

Difference¥8,403¥441¥7,971¥8,305

¥333

379

18

313

327

14

8,322

8,782

459

8,284

8,632

347

Japanese government bonds

̶

̶

̶

̶

̶

̶

Japanese corporate bonds

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥8,322¥8,782¥459¥8,284¥8,632¥347

As of March 31,

Held-to-maturity bonds of which fair value
exceeds balance sheet amount

Subtotal
Held-to-maturity bonds of which fair value
does not exceed balance sheet amount

Subtotal
Total

Note: Fair value is based upon the value measured at the year-end.

88 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Non-consolidated)

Available-for-sale securities(Millions of yen)2014
As of March 31,

2015

Balance sheet
amountAcquisition
cost

Unrealized
gains (losses)

Balance sheet
amountAcquisition
cost

Unrealized
gains (losses)

Available-for-sale securities of which balance sheet
amount exceeds acquisition costBonds

¥299,596¥292,815¥ 6,780¥218,017¥210,175¥ 7,841

Japanese government bonds

86,361

82,951

3,410

58,91055,466

3,443

Japanese municipal bonds

56,77055,212

1,558

56,66854,585

2,082

Japanese corporate bonds
OthersForeign bonds

156,463

154,652

1,811

102,438

100,1232,315

346,162

340,123

6,038

352,552

344,168

8,384

342,601

337,837

4,763

347,998

341,882

6,115

3,561

2,286

1,275

4,554

2,286

2,268

645,758

632,939

12,819570,569

554,344

16,225

5,200

5,200

(0)

20,995

21,262

(266)

2,500

2,500

(0)

15,997

16,261

(264)

̶

̶

̶

̶

̶

̶

OthersSubtotal
Available-for-sale securities of which balance sheet
amount does not exceed acquisition cost
Bonds
Japanese government bonds
Japanese municipal bonds

2,700

2,700

̶

4,998

5,000

(2)

112,478

113,017(538)

128,112

128,291(179)

112,478

113,017(538)

128,112

128,291

(179)

̶

̶

̶

̶

̶

̶

Japanese corporate bonds
OthersForeign bonds
OthersSubtotal
Total

117,678

118,217(538)

149,107

149,553(445)¥763,437¥751,157¥12,280¥719,677¥703,898¥15,779

Note: Fair value is based upon the value measured at the year-end.

Securities without fair market value(Millions of yen)

As of March 31,

2014

2015

Balance sheet
amountBalance sheet
amount¥2,050¥2,050Stocks of subsidiaries and affiliated companies
Stocks of subsidiaries

4- 02 Fair value information on monetary trusts
Monetary trusts for investment(Millions of yen)2014
As of March 31,

Monetary trusts for investment

Balance sheet
amount¥484

2015
Net valuation gains(losses) recorded inincome for fiscal year¥̶Balance sheet
amount¥565

Net valuation gains(losses) recorded inincome for fiscal year¥̶Monetary trusts for held-to-maturity
Not applicableSony Financial Holdings Inc. Financial Data Book 2015 89

Sony Bank Financial Data (Non-consolidated)

Other monetary trusts(Millions of yen)

2014
Balance sheet
amountAs of March 31,

Other monetary trusts

Acquisition cost

¥20,000

Difference

Of which, balance sheet
amount exceeds
acquisition cost

Of which, balance sheet
amount does notexceed acquisition cost

¥̶

¥̶

¥̶

¥20,000

Note: “Difference” consists of “Of which, balance sheet amount exceeds acquisition cost” and “Of which, balance sheet amount does not exceed
acquisition cost.”(Millions of yen)

2015
Balance sheet
amountAs of March 31,

Other monetary trusts

Acquisition cost

¥23,000

Of which, balance sheet Of which, balance sheet
amount does notamount exceeds
exceed acquisition costacquisition cost

Difference¥̶¥23,000¥̶¥̶

Note: “Difference” consists of “Of which, balance sheet amount exceeds acquisition cost” and “Of which, balance sheet amount does not exceed
acquisition cost.”

4- 03 Fair value information on derivatives
Interest rate derivatives[For the year ended March 31, 2014]
Derivatives for which hedge accounting is not applied
Not applicable
Derivatives for which hedge accounting is applied(Millions of yen)

As of March 31,

2014

MethodType

Hedged item

Deferred hedge
accounting

Interest rate swaps
Floating rate receive/Fixed rate pay

Loans

Fair value hedge
accounting

Interest rate swaps
Floating rate receive/Fixed rate pay

Available-for-salesecurities (bonds)

Total

Notional amount

Notional amountover 1 year

Fair value¥ 46,974¥ 45,292¥ (1,446)

366,597¥̶

313,539(14,149)̶

¥(15,595)¥

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 of Japanese Institute of Certified
Public Accountants No. 24) and derivatives for which fair value hedge accounting is applied.
2. Fair market value is calculated using the discounted present value.

[For the year ended March 31, 2015]
Derivatives for which hedge accounting is not applied
Not applicable
Derivatives for which hedge accounting is applied(Millions of yen)

As of March 31,
Method2015
Type

Hedged item

Deferred hedge
accounting

Interest rate swaps
Floating rate receive/Fixed rate pay

Loans, deposits

Fair value hedge
accounting

Interest rate swaps
Floating rate receive/Fixed rate pay

Available-for-salesecurities (bonds)

Total

Notional amount

Notional amountover 1 year

Fair value¥ 39,000¥ 39,000¥ (1,095)

362,048¥

̶

321,092(24,635)

̶¥(25,731)¥

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 of Japanese Institute of Certified
Public Accountants No. 24) and derivatives for which fair value hedge accounting is applied.
2. Fair market value is calculated using the discounted present value.

90 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Bank Financial Data (Non-consolidated)

Currency derivatives[For the year ended March 31, 2014]
Derivatives for which hedge accounting is not applied(Millions of yen)

As of March 31,

2014
Notional amount

Notional amountover 1 year

Sold

¥ 75,611¥̶Bought126,400

̶

585

585

Sold

41,601̶(1,266)(1,266)

Bought25,375

̶

1,585

1,585

Sold

1,682

̶

(6)

2

Bought

2,570

̶

18

(2)

45

̶

(0)

(0)

Category

OTC:

Type

Fair value

Valuation gains(losses)¥¥

Forward foreign exchanges
(14)

(14)

Foreign exchange margin transactions

Currency options

Currency forwards
Sold
Bought
Total

9,560

̶

337

337

̶

¥̶

¥ 1,239¥ 1,226¥

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

Derivatives for which hedge accounting is applied(Millions of yen)

As of March 31,
MethodFair value hedge
accounting

2014
Type

Currency swaps

Hedged item

Available-for-sale securities (bonds)

Total

Notional amount

Notional amountover 1 year

¥12,209¥522¥1,340̶¥ ̶¥1,340¥Fair value

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

Sony Financial Holdings Inc. Financial Data Book 2015 91

Sony Bank Financial Data (Non-consolidated)[For the year ended March 31, 2015]
Derivatives for which hedge accounting is not applied(Millions of yen)

As of March 31,

2015
Notional amount

Notional amountover 1 year

Sold

¥123,229¥̶Bought188,611

̶

121

121

Sold

63,105

̶

(1,319)(1,319)Bought20,875

̶

1,624

1,624

Sold

503

̶

(3)

0

Bought

514

̶

3

0

Category

OTC:

Type

Fair value

Valuation gains(losses)¥¥

Forward foreign exchanges
49

49

Foreign exchange margin transactions

Currency options

Currency forwards
̶

̶

̶

̶

12,917

̶

(903)

(903)

̶

¥̶

¥ (427)¥ (426)

Sold
BoughtTotal¥

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

Derivatives for which hedge accounting is applied(Millions of yen)

As of March 31,
MethodFair value hedge
accounting

2015
Type

Currency swaps

Hedged item

Available-for-sale securities (bonds)

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

92 Sony Financial Holdings Inc. Financial Data Book 2015

Notional amount

Notional amountover 1 year

¥8,998¥2,168

¥435

̶

¥435

¥

̶

¥

Fair value

Sony Bank

Performance Indicators of Sony Bank (Non-consolidated)
1 Key Performance Indicators(Millions of yen)

For the years ended March 31,

2011

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

2012

¥

29,521
3,377
2,054
31,000620,000
59,971
1,761,830
1,649,106
722,452
940,12110.84%

2013¥

30,075
4,033
2,340
31,000620,000
62,796
1,890,503
1,762,282
835,582
912,933
11.58%

2014¥

31,351
4,282
879
31,000620,000
67,811
2,005,081
1,857,447
970,226
908,847
11.98%

2015¥

33,994
5,845
3,585
31,000620,000
72,774
2,056,704
1,890,022
1,057,419
773,81111.72%¥

35,7147,298
4,634
31,000620,000
77,0642,062,525
1,878,256
1,187,187
730,01310.66%
5

̶

̶

̶

̶

̶

288

321

371

430

455

Notes: 1. As a result of a change in the presentation method in the year ended March 31, 2015, figures for the year ended March 31, 2014 have been reclassified
to reflect such change. For ordinary revenues for the year ended March 31, 2014, please refer to the note on page 82.
2. The number of employees excludes temporary employees and subcontracted employees seconded to Sony Bank.

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

2014

2015

For the years ended March 31,

Domestic
divisionInternational
division

Total

Domestic
divisionInternational
division

Total

Floating deposits
Time and saving deposits
Other deposits
Total¥ 433,586
1,030,733
37¥1,464,357¥190,219
185,793
13¥376,026¥ 623,805
1,216,527
50¥1,840,383¥ 479,918
1,010,935
50¥1,490,904¥176,848
172,557
2¥349,408¥ 656,767
1,183,492
52¥1,840,312

Year-end balance(Millions of yen)2014
As of March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

2015

Domestic
divisionInternational
division¥ 509,503
1,014,426
17¥1,523,947¥184,136
181,938̶¥366,074

Total

Domestic
divisionInternational
division¥ 693,640
1,196,364
17¥1,890,022¥ 494,003
1,053,960
14¥1,547,978¥169,085
161,192̶

¥330,278

Total¥ 663,088
1,215,153
14¥1,878,256

Note: Floating deposits of the Domestic division include deposits from the parent company and its subsidiaries in the amount of ¥52 million and ¥5,395 million
as of March 31, 2014 and 2015, respectively.

2- 02 Balance of time deposit by remaining period(Millions of yen)

2014

2015

As of March 31,

Fixed rate
time deposits

Floating rate
time deposits

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

¥ 150,438
496,488381,41735,243
10,83061,490¥1,135,909

¥̶
̶
̶
̶
̶
̶

¥̶

Total

Fixed rate
time deposits

Floating rate
time deposits¥ 150,438
496,488381,41735,243
10,83061,490¥1,135,909¥ 135,469
529,308
384,084
29,534
11,11860,871¥1,150,387

¥̶
̶
̶
̶
̶
̶

¥̶

Total

¥ 135,469
529,308
384,084
29,534
11,11860,871¥1,150,387

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

Sony Financial Holdings Inc. Financial Data Book 2015 93

Performance Indicators of Sony Bank (Non-consolidated)

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

2014
Domestic
division

For the years ended March 31,

Loans on bills

̶¥

Loans on deeds

International
division¥̶

Domestic
division

Total

̶

¥

International
division

̶

¥

̶

¥

Total

̶

¥

995,555

3,779

999,335

1,085,184

5,712

1,090,896

6,457

0

6,457

5,553

̶

5,553

̶

̶

̶

̶

̶

̶

¥1,002,013¥3,780¥1,005,793¥1,090,738¥5,712¥1,096,450

Overdrafts
Bills discounted
Total

2015

Year-end balance(Millions of yen)

2014
Domestic
division

As of March 31,

̶

2015

International
division

̶

Total

̶

̶

̶

Total

̶

¥

Loans on deeds

1,047,572

4,124

1,051,697

1,172,605

7,814

1,180,420

5,722

̶

5,722

6,766

̶

6,766

¥

¥

¥

̶

̶

̶

̶

̶

̶

¥1,053,295¥4,124¥1,057,419¥1,179,372¥7,814¥1,187,187

Bills discounted
Total

¥

International
division

Loans on bills
Overdrafts¥

Domestic
division

3- 02 Balance of loans by remaining period(Millions of yen)2014
As of March 31,

Fixedinterest rates

Floating
interest rates

Less than 1 year¥

¥ 18,761

149

2015
Total

¥

Fixed
interest rates

18,911¥

Floating
interest rates

103¥ 34,140

Total¥

34,243

Over 1 year, not exceeding 3 years

1,566

45,34946,9152,507

36,82939,337

Over 3 years, not exceeding 5 years

3,841

25,12628,9673,474

22,02225,496

Over 5 years, not exceeding 7 years

7,430

10,397

17,827

8,658

16,80725,466

Over 7 years, not exceeding 10 years

21,25920,89942,15922,83017,86040,691

Over 10 years

550,360

352,277

902,637

537,722484,229

1,021,951

Total¥584,607¥472,812¥1,057,419¥575,297¥611,890¥1,187,187

3- 03 Balance of loans by collateral(Millions of yen)

As of March 31,

Pledged securities
Pledged receivables
Pledged merchandise
Pledged real estate
OthersSubtotal

2014

¥

2015
̶
̶

¥

̶
̶

̶

̶

715,013797,292̶̶

715,013797,292

Guaranteed

67,23994,738Credit275,165

295,156

Total¥1,057,419¥1,187,187

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

Customers’ liabilities for acceptances and guarantees classified by type of collateral
Not applicable

94 Sony Financial Holdings Inc. Financial Data Book 2015

Performance Indicators of Sony Bank (Non-consolidated)

3- 04 Balance of loans by industry(Millions of yen, %)2014
As of March 31,

2015

BalanceComposition

BalanceComposition

Individual¥ 955,161

90.33%¥1,079,643

90.94%

Corporation

102,257

9.67

107,543

9.06

Manufacturing industries

39,872

3.77

40,813

3.44

Construction

1,970

0.19

1,753

0.15

Electricity, gas, heat and water supplies

1,000

0.09

1,000

0.08

Information and telecommunications

620

0.06

620

0.05

Transportation/Mail services

9,921

0.94

7,995

0.67

Wholesalers/Retailers

12,156

1.15

12,537

1.06

Financial services/Insurance

10,933

1.03

13,780

1.16

Real estate/Goods leasing services

20,814

1.97

23,555

1.98

Various service

1,931

0.18

2,456

0.21

Local government

3,035

0.29

3,030

0.26

Total

¥1,057,419

100.00%¥1,187,187

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

(%)

2014
For the years ended March 31,

Domestic
divisionInternational
division

At the year-end

69.11%

Annual average

68.42

2015
Total

Domestic
divisionInternational
division

1.12%

55.94%

76.18%

2.36%

63.20%

1.00

54.65

73.15

1.63

59.57

Total

Loan balance at year-end (annual average) ×
Note: Loan-deposit ratio =100
Deposit balance at year-end (annual average)

3- 06 Allowance for loan losses: balance at the year-end and increase (decrease) during the year

(Millions of yen)

For the years ended March 31,

2014

Increase(decrease)

General allowance for loan losses¥ 790¥ (44)¥ 595¥(195)

Specific allowance for loan losses

737

(70)

559

(177)

̶

̶

̶

̶

¥1,527¥(114)¥1,154¥(373)

Allowance for loan losses from borrowers in specific foreign countries
Total

2015

Increase(decrease)3- 07 Write-off loans(Millions of yen)

For the years ended March 31,

Total

2014

2015

¥3

¥0

Sony Financial Holdings Inc. Financial Data Book 2015 95

Performance Indicators of Sony Bank (Non-consolidated)

4 Status of Operations (Securities)
4- 01 Average balance of securities under proprietary accounts by category
Not applicable

4- 02 Balance of securities by category and remaining period(Millions of yen)2014
As of March 31,

Japanese government bonds

Less than
1 year¥ 20,547

Over 1 year,
not exceeding
3 years

Over 5 years,
not exceeding
7 years

Over 7 years,
not exceeding
10 years

Over 10 years

Unspecified
term

̶

4,013

¥ 30,242¥ 3,147¥ 19,290¥19,581

500

2,719

̶

18,31835,231

̶̶

56,770Japanese corporate bonds

58,101

31,676

8,264

19,407

41,713360

̶

159,524

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities
Of which, foreign bonds¥ 96,823

114,013

193,807

115,637

15,127

16,494

̶

3,561

458,641

114,013

193,807

115,637

15,127

16,494̶̶

455,080

̶

̶

̶

̶

̶

̶

3,561

3,561

¥193,163¥232,217¥154,144¥56,001¥112,730¥19,942¥5,612¥773,811

Others
Total

¥

Total

Japanese municipal bonds
Japanese stocks¥

Over 3 years,
not exceeding
5 years(Millions of yen)2015
As of March 31,

Less than
1 yearJapanese government bonds¥

̶Over 1 year, Over 3 years, Over 5 years, Over 7 years,
not exceeding not exceeding not exceeding not exceeding
10 years
Over 10 years
7 years
5 years
3 years¥ 23,489¥ 11,579

¥

2,130

¥

̶

Unspecified
term¥45,679

̶

¥

Total

¥ 82,878

Japanese municipal bonds

̶

2,675

526

51,063

2,402

̶

̶

56,668Japanese corporate bonds

26,675

10,007

12,30339,323

19,127313

̶107,750

Japanese stocks

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities

139,369

168,507

109,667

21,83836,727

̶

4,554

480,665

139,369

168,507

109,667

21,83836,727̶̶

476,110

̶

̶

̶

̶

̶

̶

4,554

4,554

¥166,044¥204,679¥134,078¥114,355¥58,256¥45,992¥6,605¥730,013

Of which, foreign bonds
OthersTotal

4- 03 Average and year-end balance of securities by category
Average balance(Millions of yen)

2014

2015

For the years ended March 31,

Domestic
divisionInternational
division

Japanese government bonds¥117,504¥

Japanese municipal bonds

Total

Domestic
divisionInternational
division̶¥117,504¥ 73,978¥55,749̶

55,749Total

̶¥ 73,97854,926

̶

54,926135,985

179,579̶

179,579

135,985

̶

Japanese stocks

2,050

̶

2,050

2,050

̶

2,050

Other securities

6,555

443,006

449,562

2,342

489,164

491,506̶

443,006

443,006

̶

489,164

489,164

6,555

̶

6,555

2,342

̶

2,342

¥361,440¥443,006¥804,446¥269,283¥489,164¥758,447

Japanese corporate bonds

Of which, foreign bonds
OthersTotal

96 Sony Financial Holdings Inc. Financial Data Book 2015

Performance Indicators of Sony Bank (Non-consolidated)

Year-end balance(Millions of yen)

2014

2015

Domestic
divisionInternational
division

Japanese government bonds¥ 96,823

̶Japanese municipal bonds

56,770̶Japanese corporate bonds

159,524

Japanese stocks

2,050

Other securities

3,561
̶

As of March 31,

Of which, foreign bonds
Others
Total

Domestic
divisionInternational
division¥ 96,823¥ 82,878

̶

56,77056,668

̶

56,668

̶

159,524

107,750

̶

107,750

̶

2,050

2,050

̶

2,050

455,080

458,641

4,554

476,110

480,665

455,080455,080̶

476,110476,110

¥

Total

¥

Total

¥ 82,878

3,561

̶

3,561

4,554

̶

4,554

¥318,731¥455,080¥773,811¥253,902¥476,110¥730,013

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

2014

2015

For the years ended March 31,

Domestic
divisionInternational
division

Total

At the year-end

20.91%

124.31%40.94%

16.40%

144.15%38.86%

Annual average

24.68

117.81

43.71

18.06

139.9941.21

Domestic
divisionInternational
division

Total

Securities balance at the year-end (annual average)
Note: Securities-deposit ratio =× 100
Deposit balance at the year-end (annual average)

Sony Financial Holdings Inc. Financial Data Book 2015 97

Sony Life MCEVMCEV Results for Sony Life
1 MCEV Results
1- 01 MCEV resultsSony Life discloses market consistent embedded value (“MCEV”) as of March 31, 2015, compliant with the European Insurance CFO
Forum Market Consistent Embedded Value Principles©* (“MCEV Principles”).
Sony Life’s MCEV as of March 31, 2015 increased ¥101.6 billion due to the contribution of new business, the decrease in inflation
rates, the effect of the reduction in the corporate tax rate and other factors. While the value of existing business decreased significantly
due to a decline in interest rates, most of the decrease was offset with the benefit of ALM (by the increase in the adjusted net worth). The
breakdown is shown in the table below.
*Copyright © Stichting CFO Forum Foundation 2008
(Billions of yen)

As of March 31,

2014

2015

Change¥1,221.3¥1,322.9¥ 101.6

Adjusted net worth

722.1

1,119.2

397.1

Value of existing business

499.1

203.7

(295.5)

55.2

48.6

(6.6)

MCEV

New business value

1- 02 Adjusted net worth
Adjusted net worth is calculated as the market value of assets allocated for the covered business in excess of statutory policy reserves andother liabilities as of the valuation date. It is the total amount of the net assets line item on the balance sheets, adding reserve for price fluctuations, contingency reserve, reserve for possible loan losses, along with unrealized gains or losses on held-to-maturity securities andunrealized gains or losses on land and buildings, less unfunded pension liabilities and intangible fixed assets, and adjusting for the amountof tax effect equivalent to these seven items, on which valuation gains or losses on subsidiaries and affiliated companies are added. The
adjusted net worth at the end of the current fiscal year increased by ¥397.1 billion, primarily because of the increase in unrealized gain on
held-to-maturity securities caused by the decrease in interest rates. The breakdown is shown in the table below.
(Billions of yen)

As of March 31,

2014

2015

ChangeAdjusted net worth¥ 722.1¥1,119.2¥ 397.1

Total net assets

369.2

432.5

63.3

Reserve for price fluctuations

41.6

42.8

1.3

Contingency reserve

63.7

68.7

5.0

Reserve for possible loan losses

0.0

0.0

0.0

Unrealized gains or losses on held-to-maturity securities

430.3

839.5

409.1

Unrealized gains or losses on land and buildings

19.4

49.8

30.4

Unfunded pension liabilities

(3.2)

(1.9)

1.3

Intangible fixed assets(23.9)(21.6)

2.3

Tax effect equivalent of above seven items(162.5)(282.0)(119.5)

Valuation gain or loss on subsidiaries and affiliated companies(12.5)(8.7)

3.8(Billions of yen)

As of March 31,

2014

2015

ChangeAdjusted net worth¥722.1¥1,119.2¥397.1

Free surplus

566.2

597.6

31.4

Required capital

156.0

521.6

365.6

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 increase in required capitalat the end of the current fiscal year is due to an increase in the economic value of technical provisions that mainly resulted from the decrease
in interest rates. Please refer to Section 3-07 for the method used to calculate required capital.

98 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life MCEV

1- 03 Value of existing business
The value of existing business is the present value of certainty-equivalent profit less the time value of options and guarantees, and frictionalcosts and the cost of non-hedgeable risks. The value of existing business decreased by ¥295.5 billion primarily due to the decrease ininterest rates. The breakdown is shown in the table below.
(Billions of yen)

As of March 31,

2014

2015

ChangeValue of existing business¥ 499.1¥ 203.7¥(295.5)

Present value of certainty-equivalent profit

869.4

652.9

(216.5)Time value of options and guarantees(123.1)(154.9)(31.8)(9.2)(20.2)(11.0)(237.9)(274.1)(36.2)

Frictional costs
Cost of non-hedgeable risks

1- 04 New business value
Business included in the calculation of new business value covers only business acquired during the fiscal year ended March 31, 2015,
which is consistent with the financial information Sony Life has disclosed, and does not include the value of new business expected to beacquired in the future. The value of new business is the value as of March 31, 2015 and is calculated based on the same assumptions
used for the value of existing business on the same date. As the value of new business includes profits and losses from the point of sale tothe end of March 2015, actual investment gains and losses during the fiscal year ended March 31, 2015 are reflected. Despite the strong
sales, new business value decreased by ¥6.6 billion primarily because of the decrease in interest rates. A breakdown of the value of new
business is as follows:(Billions of yen)

As of March 31,

2014

2015

Value of new business¥ 55.2¥ 48.6

Change¥(6.6)

Present value of certainty-equivalent profit

84.9

92.5

7.7

Time value of options and guarantees(9.4)(17.2)(7.8)

Frictional costs

(0.3)

(0.4)

(0.1)

Cost of non-hedgeable risks(20.0)(26.3)(6.3)

1- 05 New business margin
The new business margin described below is the ratio of the value of new business to the present value of premium income. The present
value of premium income is calculated applying the same assumptions as those for the calculation of new business value, and is based onpremiums before the deduction of reinsurance premiums.
(Billions of yen)

As of March 31,

2014

Value of new business¥

Present value of premium income
Value of new business / Present value of premium income

55.2

2015

Change48.6¥ (6.6)

1,069.7

1,289.0

219.3

5.2%

3.8%

(1.4) points¥

Relationships between the annualized premiums from new policies and the present value of premium income from new business wereas follows:(Billions of yen)

As of March 31,

2014

2015

ChangeNew business single premium¥165.5¥ 73.9¥(91.6)

Annualized premiums from level premium new business

84.8

100.5

15.7

Average annualization multiplier 2

10.66

12.09

1.43

1

Annualized premiums from level premium new business is calculated by multiplying the number of payments in a year by the amount of premiums received at atime. It should be noted that the definition of annualized premiums here is different from that used in disclosures such as financial results and annual reports.
2
The average annualization multiplier is calculated as (Present value of premium income – New business single premium) / Annualized premiums from level
premium new business.
1

Sony Financial Holdings Inc. Financial Data Book 2015 99

Sony Life MCEV

1- 06 Reconciliation analysis from MCEV at the end of the previous fiscal year
The table below shows the reconciliation analysis of MCEV as of March 31, 2015, from MCEV as of March 31, 2014. The format of thetable is in line with the format prescribed by the MCEV Principles.

(Billions of yen)Free surplus

Required capital

Value of existing
business¥566.2¥156.0¥499.1¥1,221.3

Opening adjustments(20.0)

̶̶

(20.0)

Adjusted opening MCEV

1,201.3

Opening MCEV (MCEV as of March 31, 2014)

MCEV

546.2

156.0

499.1

New business value

̶

̶

48.6

48.6

Expected existing business contribution (risk-free rate)

0.4

0.1

14.1

14.7

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

0.9

0.3

6.2

7.3

(4.7)
(53.7)
10.0(23.8)(0.1)(17.3)
58.7
9.9
51.4

(35.0)

̶

365.6

39.8
53.7
(14.1)
1.7
(0.4)
95.9
(394.5)3.1(295.5)

121.5

̶

̶

̶

̶

¥597.6¥521.6¥203.7¥1,322.9

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

Of which, on new business
Experience variances
Assumption changes
Other operating variance
Operating MCEV earnings
Economic variances
Other non-operating varianceTotal MCEV earnings
Closing adjustments
Closing MCEV (MCEV as of March 31, 2015)

̶

(2.2)
23.8
0.1
(12.9)
363.7
14.9

̶

(6.3)
1.7
(0.4)
65.7
27.9
27.9

(1) Opening adjustments
These adjustments reflect changes in dividends paid to shareholders.
(2) New business value
This figure reflects increases resulting from the acquisition of new business during the fiscal year ended March 31, 2015. Please refer to
Section 1- 04 for information concerning the calculation method.
(3) Expected existing business contribution (risk-free rate)
This figure includes the release of the portion for the fiscal year ended March 31, 2015 of the time value of options and guarantees and thecost of non-hedgeable risks, in addition to the unwinding of the opening MCEV at a risk-free rate.
(4) Expected existing business contribution (in excess of risk-free rate)
This figure reflects the profit expected in excess of the risk-free rate generated by holding assets such as ordinary corporate bonds, loans,stocks, and real estate. The expected yield used for the fiscal year ended March 31, 2015 was 0.242%, which was developed by reflecting
Sony Life’s view of the market environment and annual investment plans for the year against the asset balance at the end of the previous
fiscal year.
(5) Transfer from value of existing business and required capital to free surplus
This figure tracks changes in free surplus that emerge over the course of a fiscal year due to transferring profit earned during the fiscal year
from existing business value to free surplus and to changes in required capital. The transfer of profit includes both the transfer of profit that
was anticipated during the current fiscal year under the MCEV calculation performed at the previous fiscal year-end and the transfer of
profit that was calculated as a component of new business value for the current fiscal year.
The value of MCEV itself does not change as a result of this transfer as the transfer merely constitutes an internal shift among MCEV
components.
(6) Experience variances
These variances show the impact on MCEV of the actual versus assumed differences in non-economic expected profit for the fiscal year
ended March 31, 2015 under the MCEV calculation as of March 31, 2014, and of the differences between actual policies in force as ofMarch 31, 2015, and those that were projected to be in force on March 31, 2014 using persistency assumptions.
(7) Assumption changes
This figure primarily indicates the impact of changes in assumptions based on experience data in mortality and morbidity rates, lapse andsurrender rates, and operating expense rates.
The value of existing business increased due to the improvements in mortality and morbidity rates and other factors.

100 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life MCEV

(8) Other operating varianceThis represents the impact of improvements and corrections of the model used in calculating MCEV.
(9) Operating MCEV earnings
This figure shows the aggregate amount of items (2) through (8).
(10) Economic variances
These variances show the impact of actual to assumed differences in economic assumptions, such as market interest rates and implied
volatilities that were reflected in the market environment when calculating MCEV as of March 31, 2014 on future values, and the impact of
the actual to assumed difference in expected asset investment income that were assumed to be realized during the year ended March 31,
2015 under MCEV as of March 31, 2014.
The major reasons for decreases in the value of existing business include an update of economic scenarios due to the change in themarket environment such as the decrease in interest rates, the increase in stock prices and changes in implied volatilities, accounting for adecrease in the present value of certainty-equivalent profit of ¥405.4 billion, a decrease in the time value of options and guarantees of ¥4.3
billion, an increase in frictional costs of ¥14.8 billion and an increase in the cost of non-hedgeable risks of ¥18.0 billion. Another factor is adecrease in expenses tied to the decrease in inflation rates, accounting for an increase in the value of existing business of ¥39.4 billion. The
major reason for the increase in the adjusted net worth was the increase in prices of government bonds caused by the decrease in interest
rates. While the value of existing business decreased significantly, most of the decrease was offset with the benefit of ALM (by the increasein the adjusted net worth). Overall MCEV changes are disaggregated into a decrease of ¥11.5 billion as a result of the change in the market
environment such as the decrease in interest rates and the increase in stock prices, and an increase of ¥39.4 billion as a result of thedecrease in inflation rates.
(11) Other non-operating varianceThis figure shows the effect of the change in the accounting standard for retirement benefits, the reduction of the corporate tax rate andthe change in the timing of the increase in the consumption tax rate. Please refer to Section 2-03 (6) and Section 2-03 (7) for details on the
reduction of the corporate tax rate and the change in the timing of the increase in the consumption tax rate.
(12) Closing adjustments
No items were included in closing adjustments.

1- 07 Sensitivity analysis
The impact of changing the underlying assumptions of MCEV is as follows:

Sensitivities(Billions of yen)
Assumption

Change in assumption

MCEV

Change in amountRate of change

Base

No change¥1,322.9¥

̶̶%Interest rates

50bp decrease

1,191.1(131.8)(10%)

50bp increase

1,390.5

67.6

5%

Swap rates

1,294.7(28.2)(2%)

Stock / Real estate market value

10% decrease

1,302.1(20.8)(2%)

Stock / Real estate implied volatility

25% increase

1,302.2(20.6)(2%)

Interest swaption implied volatility

25% increase

1,303.4(19.5)(1%)

Maintenance expenses

10% decrease

1,343.8

20.9

2%

Lapse and surrender rates

× 0.9

1,321.0

(1.9)

(0%)

Mortality rates

Death protection products × 0.95

1,371.2

48.3

4%

Third-sector and annuity products × 0.95

1,316.1

(6.8)

(1%)

Morbidity rates

× 0.95

1,367.945.0

3%Required capital

Regulatory minimum

1,338.5

15.6

1%

Changes in adjusted net worth within the amount of change in MCEV are shown in the table 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)Interest rates

50bp decrease¥ 545.2

50bp increase(484.0)Stock / Real estate market value

10% decrease(13.7)

Stock / Real estate implied volatility

25% increase(0.4)

Sony Financial Holdings Inc. Financial Data Book 2015 101

Sony Life MCEV

Sensitivity of new business value(Billions of yen)
Assumption

Change in assumption

Base

No change

Interest rates

50bp decrease
50bp increase
Swap rates

New Business
Value

Change in amountRate of change

̶

̶%

0.4

(48.2)

(99%)

82.4

33.8

70%

39.6

(9.0)

(19%)

10% decrease

48.5

(0.1)

(0%)

Stock / Real estate implied volatility

25% increase

46.3

(2.3)

(5%)

Interest swaption implied volatility

25% increase

46.6

(2.0)

(4%)

Maintenance expenses

10% decrease

50.5

1.9

4%

Lapse and surrender rates

× 0.9

52.1

3.5

7%

Mortality rates

Death protection products × 0.95

53.1

4.5

9%

Third sector and annuity products × 0.95

48.3

(0.3)

(1%)

Morbidity rates

× 0.95

50.4

1.8

4%

Required capital

Regulatory minimum

48.6

(0.0)

0%

Stock / Real estate market value

¥48.6

¥

(1) Interest rates
This sensitivity represents the impact of an immediate parallel shift of the Japanese and foreign government bond yield curves as of theend of March 2015, and the impact if swap rates were used instead of government bond yields. In each parallel shift sensitivity, adjusted
net worth changes as the market value of bonds and other assets changes; this is not applicable to the case where swap rates are used.
In each of the interest rate sensitivities, the value of existing business changes as interest rates, the discount rate, yields of new bonds tobe purchased in the future as existing bonds mature, and the investment returns on stocks, real estate, and other assets change. The
sensitivities are calculated for a 50bp increase and decrease rather than a 100bp increase and decrease as required in the MCEV
Principles, considering the level of interest rates in Japan. Here, the sensitivity scenarios were made so that the parameters related tointerest rate volatility were equal to those derived for the base case. Only the parameters related to the interest rate term structure werealtered when scenarios were developed using the interest rate model. The floor for downward changes in interest rates was set at 0%.
(2) Stock and real estate market value
This sensitivity represents the impact of an immediate drop in market values of stock and real estate as of the end of March 2015. Adjusted
net worth is directly affected by the change in market value of stock and real estate. The value of existing business would also be affectedby the change in the value of assets.
(3) Implied volatility of stock and real estateThis sensitivity represents the impact of an increase in the implied volatilities of stock used in calculating the time value of options andguarantees. Changes in stock implied volatilities affect the adjusted net worth and the time value of options and guarantees.
(4) Interest swaption implied volatility
This sensitivity represents the impact of an increase in the implied volatility of interest swaption used in calculating the time value of options
and guarantees. The value of existing business would change as the time value of options and guarantees change.
(5) Maintenance expenses
This sensitivity represents the impact of a decrease in maintenance expenses. It should be noted that maintenance expenses do not include
sales commissions from the in-force policies payable to Sony Life’s Lifeplanner sales employees and other sales force in future periods.
(6) Lapse and surrender rates
This sensitivity represents the impact of a decrease in lapse and surrender rates.
(7) Mortality rates
This sensitivity represents the impact of a decrease in mortality rates. Sony Life has shown the impact on death protection products andthe impact on third-sector insurance and annuity products separately, as they would have different impacts. Sony Life has covered basepolicies and riders of which the principal benefits are accidental death, disability, cancer, medical and nursing care benefits, and individual
annuities with respect to third-sector insurance and the annuity product segment. No management actions were reflected.
(8) Morbidity rates
This sensitivity represents the impact of a decrease in the morbidity rates of sickness and others in third-sector products.
(9) Required capitalThis sensitivity represents the impact in the event that required capital is changed to the regulatory minimum level, which is a solvency
margin ratio of 200%.

102 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life MCEV

(10) Other
The following points should be noted regarding the sensitivities:• Frictional costs and the cost of non-hedgeable risks do not change in the sensitivity tests, with the exception of frictional costs, which arechanged in terms of (9) required capital.
• Values of subsidiaries and affiliated companies are not changed except in the case of the stock market value sensitivity, where the stock
value of subsidiaries and affiliated companies are altered.
• The impact of changing more than one assumption at a time is not equal to the sum of the impacts for each assumption.

2 Assumptions
2- 01 Economic assumptions
Sony Life has made economic assumptions in its calculation of MCEV as of the end of March 2015.
(1) Risk-free rate
Sony Life has used the JGB yields and the U.S. Treasury yields as of the end of March 2015 as risk-free rates for the certainty-equivalentprojections. It is assumed that forward rates in the 41st year and beyond were equal to those in the 40th year for JGB yields and forward
rates in the 31st year and beyond were equal to those in the 30th year for U.S. Treasury yields. Sony Life has used Bloomberg’s
government bond yields as its data source.
The government bond yields for key terms are as follows:(%)
Japanese yen

As of the end of March,

U.S. dollar

2014

2015

2014

2015

1

0.08%

0.03%

0.11%

0.23%

5

0.20

0.13

1.72

1.37

10

0.64

0.40

2.72

1.92

20

1.50

1.14

3.37

2.30

Term (in years)

30

1.70

1.36

3.56

2.54

40

1.78

1.46

̶

̶

The swap rates for key terms which are used for the sensitivity result with swap rates in Section 1-07 (1) are as follows. It is assumed thatforward rates in the 41st year and beyond were equal to those in the 40th year for swap rates in Japanese yen and forward rates in the
51st year and beyond were equal to those in the 50th year for swap rates in U.S. dollars.
(%)
Japanese yen

U.S. dollar

2015

2015

1

0.15%

0.46%

5

0.28

1.53

10

0.58

2.02

20

1.15

2.32

30

1.36

2.39

40

1.44

2.41

50

̶

2.39

As of the end of March,

Term (in years)

Sony Life has not added a liquidity premium on the risk-free rate as there are no products which are considered to have reasonably
predictable and illiquid cash flows and would therefore be appropriate to apply a liquidity premium.
(2) Interest-rate modelSony Life has calibrated the interest rate model to the market as of the end of March 2015. Sony Life has estimated parameters for theinterest rate model from the yield curve and the implied volatilities of interest swaptions with different terms. Sony Life has used 1,000
scenarios generated by Milliman, Inc. in calculating the time value of options and guarantees under the stochastic method.

Sony Financial Holdings Inc. Financial Data Book 2015 103

Sony Life MCEV

The implied volatilities of the interest swaption used in Sony Life’s estimation are presented below. Please note that the implied volatility
for the Euro with a 1-year term of swap and a 1-year term of option was not used in the calibration because reliable data was not available.
(%)

As of the end of March,

2014

Term of swap (in years)

Term of option (in years)

1
5
5
5
5
5
5
10
10
10
10
10
10
15
15
15
15
15
15
20
20
20
20
20
20

1
1
5
7
10
15
20
1
5
7
10
15
20
1
5
7
10
15
20
1
5
7
10
15
20

Japanese yen

U.S. dollarEuro

UK pound

78.4%
57.2
36.8
29.1
23.9
22.1
24.2
37.2
27.8
24.6
22.5
21.2
22.7
28.0
23.9
22.6
21.6
22.1
21.9
25.1
22.9
22.4
21.6
22.0
22.2

72.6%
35.4
23.5
21.4
19.2
16.6
15.2
24.5
21.0
19.7
18.3
16.3
15.0
20.6
19.1
18.2
17.0
14.9
13.5
19.3
18.3
17.4
16.3
14.5
13.5

88.6%
48.2
30.9
26.1
23.4
23.4
23.8
31.8
26.8
24.7
23.7
23.8
23.6
25.6
24.8
23.4
22.7
22.1
21.0
23.2
24.2
22.8
22.2
20.7
19.0

54.1%
34.4
23.2
20.5
18.6
17.1
16.8
24.7
20.4
19.1
17.8
16.6
15.9
21.4
19.2
18.2
17.2
15.7
14.9
19.3
18.3
17.5
16.6
15.0
14.1
(%)

As of the end of March,

2015

Term of swap (in years)

Term of option (in years)

1
5
5
5
5
5
5
10
10
10
10
10
10
15
15
15
15
15
15
20
20
20
20
20
20

1
1
5
7
10
15
20
1
5
7
10
15
20
1
5
7
10
15
20
1
5
7
10
15
20

104 Sony Financial Holdings Inc. Financial Data Book 2015

Japanese yen

U.S. dollar

95.3%
62.3
47.2
38.5
32.7
26.5
27.4
54.3
38.6
33.7
29.7
27.5
29.4
42.8
33.5
31.1
29.4
27.4
28.9
39.7
33.1
31.4
30.0
27.8
29.3

60.5%
46.7
37.3
34.7
32.0
27.9
24.9
39.4
34.7
32.8
30.2
27.1
24.1
37.2
32.3
30.4
28.2
25.2
22.6
35.9
31.3
29.3
27.1
24.3
22.4

Euro

̶%

107.4
84.6
83.5
95.0
109.6
68.3
89.8
83.6
84.3
101.0
128.4
65.6
84.1
78.9
80.9
93.7
123.6
289.7
84.9
81.5
82.4
91.1
155.0
129.2

UK pound

76.6%
57.3
42.8
39.4
34.7
30.4
29.1
48.7
39.2
36.5
32.7
29.6
27.9
45.5
37.2
34.9
31.5
28.4
26.8
44.3
36.7
34.3
30.6
27.5
25.8

Sony Life MCEV

(3) Implied volatilities of foreign exchange rates and stocks
Sony Life has obtained spot implied volatilities from options with different terms. Implied volatilities are all those for at-the-money options.
Bloomberg is the source of data for foreign exchange rates and the stock price index is the average of the implied volatilities provided by
securities firms.
Sony Life has assumed that forward implied volatilities in the 11th year and beyond are equal to those in the 10th year for both foreignexchange rates and the stock price index as these derivatives have low liquidities for the period over 10 years.
Implied volatilities used for the estimation are as follows:

(%)

2014
Foreign exchange

As of the end of March,

Term (in years)
1
5
10

StocksU.S. dollar /Japanese yen

Euro /
Japanese yen

UK pound /Japanese yen

Japan TOPIX

U.S. S&P

Euro SX5E

UK FTSE

9.9%
13.2
16.6

11.1%
15.0
17.3

10.7%
14.5
16.2

19.7%
18.6
19.9

15.1%
18.8
23.4

17.3%
18.7
19.6

13.6%
17.2
20.1
(%)

2015
Foreign exchange

As of the end of March,

Term (in years)
1
5
10

StocksU.S. dollar /Japanese yen

Euro /
Japanese yen

UK pound /Japanese yen

Japan TOPIX

U.S. S&P

Euro SX5E

UK FTSE

9.9%
11.4
14.1

11.2%
13.0
15.0

11.7%
13.8
15.9

18.5%
18.6
20.1

16.6%
22.0
27.3

19.4%
21.4
21.7

15.6%
19.4
22.0

(4) Correlation factors
Sony Life has calculated correlation factors from the monthly return of each index for a period of five years from April 2010 to the end of
March 2015 as there is no market-consistent data for correlation factors.
2014

As of the end of March,

Japanese yen Interest rate 1Y
U.S. dollar Interest rate 1Y
Euro Interest rate 1Y
UK pound Interest rate 1Y
U.S. dollar / Japanese yen
Euro / Japanese yen
UK pound / Japanese yen
TOPIX
S&P
SX5E
FTSE

JapaneseyenInterest
rate 1Y

U.S.
dollarInterest
rate 1Y

Euro
Interest
rate 1YUK
pound
Interest
rate 1Y

1.00(0.05)
0.02
0.23
0.11
0.03
0.04
(0.01)(0.09)(0.15)(0.22)(0.05)
1.00
0.10(0.02)
0.54
0.25
0.24
0.35
0.11
0.12
0.11

0.02
0.10
1.00
0.27
0.08
0.48
0.33
0.22
0.39
0.47
0.30

0.23
(0.02)
0.27
1.00
0.06
0.24
0.18
0.10
0.02
(0.00)(0.11)

JapaneseyenInterest
rate 1Y

U.S.
dollarInterest
rate 1Y

Euro
Interest
rate 1YUK
pound
Interest
rate 1Y

1.00(0.18)
0.02
0.30
0.08
(0.04)
0.09
0.22
0.01
0.23
0.00

(0.18)
1.00
0.15
0.09
0.40
0.22
0.25
0.32
0.18
0.05
0.03

0.02
0.15
1.00
0.27
0.10
0.47
0.37
0.25
0.41
0.51
0.34

0.30
0.09
0.27
1.00
0.14
0.30
0.20
0.28
0.20
0.30
0.15

UK
U.S.
pound /
Euro /
dollar /Japanese Japanese Japanese
yen
yen
yen

TOPIX

S&P

SX5E

FTSE

0.04
0.24
0.33
0.18
0.67
0.82
1.00
0.66
0.40
0.37
0.23

(0.01)
0.35
0.22
0.10
0.61
0.62
0.66
1.00
0.54
0.53
0.47

(0.09)
0.11
0.39
0.02
0.18
0.59
0.40
0.54
1.00
0.81
0.89

(0.15)
0.12
0.47(0.00)
0.19
0.52
0.37
0.53
0.81
1.00
0.85

(0.22)
0.11
0.30(0.11)
0.16
0.50
0.23
0.47
0.89
0.85
1.00

UK
U.S.
pound /
Euro /
dollar /Japanese Japanese Japanese
yen
yen
yen

TOPIX

S&P

SX5E

FTSE

0.22
0.32
0.25
0.28
0.59
0.58
0.65
1.00
0.56
0.52
0.45

0.01
0.18
0.41
0.20
0.24
0.65
0.55
0.56
1.00
0.72
0.84

0.23
0.05
0.51
0.30
0.21
0.49
0.42
0.52
0.72
1.00
0.80

0.00
0.03
0.34
0.15
0.18
0.53
0.37
0.45
0.84
0.80
1.00

0.11
0.54
0.08
0.06
1.00
0.65
0.67
0.61
0.18
0.19
0.16

0.03
0.25
0.48
0.24
0.65
1.00
0.82
0.62
0.59
0.52
0.50
2015

As of the end of March,

Japanese yen Interest rate 1Y
U.S. dollar Interest rate 1Y
Euro Interest rate 1Y
UK pound Interest rate 1Y
U.S. dollar / Japanese yen
Euro / Japanese yen
UK pound / Japanese yen
TOPIX
S&P
SX5E
FTSE

0.08
0.40
0.10
0.14
1.00
0.66
0.71
0.59
0.24
0.21
0.18

(0.04)
0.22
0.47
0.30
0.66
1.00
0.86
0.58
0.65
0.49
0.53

0.09
0.25
0.37
0.20
0.71
0.86
1.00
0.65
0.55
0.42
0.37

Sony Financial Holdings Inc. Financial Data Book 2015 105

Sony Life MCEV

(5) Foreign exchange
Assets denominated in foreign currencies and the value of U.S. dollar-denominated products are converted to Japanese yen using the TTM(telegraphic transfer middle exchange rate) as of the end of March 2015.
The table below shows foreign exchange rates of major currencies.
(Yen)

As of the end of March,

2014

2015

U.S. dollar / Yen¥102.92¥120.17

Euro / Yen

141.65130.32UK pound / Yen

171.31178.072- 02 Future asset allocation(1) Asset allocation in the general accountSegment accounting is conducted for individual life insurance and individual annuity based on the classifications of the non-participatingproduct segment, the semi-participating product segment, the interest rate-sensitive whole life insurance segment, and the foreigncurrency-denominated product segment. Asset allocation in the general account under the stochastic method was determined based on
the actual asset allocation in each segment as of the end of March 2015 with an assumption of no changes in asset allocation thereafter.
(2) Asset allocation in the separate account
There are eight funds established in the separate account. The asset allocation for each fund at the beginning of the projection is determined based on the actual fund allocation as of the end of March 2015 and no rebalancing adjustments are applied to maintain the initialfund allocation thereafter.

2- 03 Other assumptions
Assumptions including mortality and morbidity rates, lapse and surrender rates, and operating expense rates, were developed based onbest estimates by product as of the end of March 2015. Best-estimate assumptions are developed to reflect past and current experiences
as well as expected experiences in the future. Expected future changes in assumptions should be reflected only when they are supported
by sufficient reasons. Except for a deteriorating trend in morbidity rates, no other expected future changes are assumed in the bestestimate assumptions applied. Assumptions were developed as follows:(1) Mortality and morbidity rates
Developed based on experiences over the past three years. Deteriorating trends in morbidity rates are taken into account for those A&H
products for which deteriorating trends were observed when the experience data were analyzed in conducting the statutory stress test.
(2) Lapse and surrender rates
Lapse and surrender rates for the base case were developed based on experience over the past three years. Sony Life has also developed
dynamic assumptions in accordance with the level of interest rate or investment performance. The dynamic assumptions are made for thefollowing products:• Variable life insurance• Interest rate sensitive whole life insurance• Semi-participating products• Non-participating whole life insurance• Non-participating endowment insurance• Non-participating educational endowment insurance• U.S. dollar-denominated insurance
Since Sony Life has not identified explicit correlations that relate interest rates or the level of account value against minimum guarantee
amount to lapse and surrender rates for policies other than variable insurance, Sony Life has developed dynamic surrender rates by examining experience on similar products, and taking into account current domestic and overseas practice. Going forward, Sony Life will strive toimprove its approach to dynamic surrender assumptions for the relevant products by carefully monitoring experience data and referring toexperience with similar products and trends of practice in Japan and other countries.
(3) Flexible premiums
There are no flexible premium products and thus no assumptions were developed.
(4) Renewal rates
Because there is very little renewable business and it does not have a significant impact on results, some policy renewals were reflected ina simplified manner.

106 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life MCEV

(5) Operating expense rates
Sony Life has developed unit costs of the expenses incurred for maintenance and administration of policies and payments of claims basedon the actual operating expenses in the past fiscal year and the depreciation costs over the past three years. For expected system-related
expenses in the future, the unit costs reflect the average of depreciation costs over the past three years excluding one-off expenses thatare not expected to recur in the future. The one-off expenses excluded from the depreciation costs are ¥1.5 billion (fiscal 2014 base), which
are for system revisions.
MCEV Principles require that, where costs of managing the covered business are incurred within group companies, profit or losses tothose companies are to be valued on a “look through” basis. In relation to the parent company, Sony Financial Holdings Inc., unit cost
includes management administration charges payable to the parent company. In relation to subsidiaries and affiliated companies, unit cost
includes the cost incurred at Sony Life to manage those companies. Other look-through effects are not considered.
(6) Effective tax rate
With “The Law to Revise the Income Tax, etc.,” promulgated on March 31, 2015, the corporate tax rate was reduced. Reflecting thischange, the effective tax rate is set at 30.78% in the fiscal year 2014 and 28.85% in and after the fiscal year 2015.
(7) Consumption tax rate
With “The Law to Revise the Income Tax, etc.,” promulgated on March 31, 2015, the increase in the consumption tax rate to 10% was
postponed to April 1, 2017. Future expenses were increased by reflecting the increase in the consumption tax rate to 10% on and after
April 1, 2017.
(8) Inflation rate
Inflation rates in the future were set at 0.719% by referring to a 10-year inflation swap rate and removing the effect of the increase in the
consumption tax rate. A single inflation rate is applied for all years considering the current market for inflation swaps.

3 Calculation Method of MCEV
3- 01 Covered business
The covered business is the business operated by Sony Life, its subsidiaries, and its affiliated companies.

3- 02 Treatment of subsidiaries and affiliated companies
Sony Life’s calculations include the following values regarding its subsidiaries and affiliated companies in the calculation of adjusted
net worth:• AEGON Sony Life Insurance Co., Ltd. is valued at ¥(2.1) billion, which is equal to net asset value minus intangible fixed assets,
reinsurance credits on modified coinsurance (to be amortized in the future) and Insurance Business Law Article 113 deferred assets,
multiplied by the participation rate.
• Other companies are valued at book value under Japanese GAAP, which is ¥5.5 billion.
There are no other values reflected in the values of Sony Life’s subsidiaries and affiliated companies except for the above, and all otherresults solely reflect Sony Life (on a non-consolidated basis).

3- 03 Treatment of reinsuranceSony Life has designated reinsurance premiums as expenses and reinsurance benefits as income in its projections, as Sony Life has ceded
as reinsurance the mortality risks of certain death protection insurance products.

3- 04 Treatment of semi-participating policies
Sony Life has calculated dividends in accordance with the level of future investment returns, based on the same method used to determine
the dividend rate for the accounting closure of March 31, 2015, reflecting the present value of certainty-equivalent profit and the time valueof options and guarantees.

3- 05 MCEVMCEV is defined as the expected present value of distributable earnings to shareholders generated from assets allocated to the coveredbusiness after making appropriate allowance for aggregate risks in the covered business. MCEV is presented as the sum of adjusted net
worth and value of existing business.

Sony Financial Holdings Inc. Financial Data Book 2015 107

Sony Life MCEV

3- 06 Adjusted net worth
Adjusted net worth is calculated as the market value of assets allocated for the covered business in excess of statutory policy reserves andother liabilities as of the valuation date. Specifically, it is equal to the total amount of the net assets section on the balance sheets, adding
reserve for price fluctuations, contingency reserve, reserve for possible loan losses, unrealized gains or losses on held-to-maturity securities,
and unrealized gains or losses on land and buildings, less unfunded pension liabilities and intangible fixed assets, and adjusting for theamount of tax effect equivalent of these seven items, on which valuation gains or losses on subsidiaries and affiliated companies areadded. Adjusted net worth can be split into required capital and free surplus.

3- 07 Required capital
The MCEV Principles define required capital as the amount of assets that should be held in addition to the assets corresponding to thestatutory liability to fulfill in-force policy obligations, which by nature is restricted from distribution to shareholders. The level of required capital should be the larger of the solvency capital to meet the regulatory minimum level or the capital required to meet the internal objectives interms of marketing or risk management purposes, or to achieve the company’s targeted credit rating.
Sony Life sets its required capital as the larger of the amount of capital required for the Japanese regulatory minimum at the solvency
margin ratio of 200% or the amount of capital to cover risks based on the internal model on an economic value basis. The latter is larger asof the end of March 2015.
Sony Life defines the amount of capital to cover risks based on the internal model as the total amount of technical provision and solvency
risk capital on an economic value basis in excess of statutory policy reserves (excluding contingency reserves). The solvency risk capital onan economic value basis is calibrated at VaR (99.5%) over one year and based on the internal model, which is a similar but modified model
based on the EU Solvency II (QIS5) standard method.
The solvency risk capital on an economic value basis as of the end of March 2015 was ¥745.5 billion (after tax). The effective tax rateused to adjust to the after-tax basis is 28.85%. The required capital is ¥521.6 billion, which is 1,692.4% of the regulatory minimum capitalrequirement.
Sony Life will also revise the internal model itself as appropriate, taking into account domestic and overseas conditions, including developments in international accounting standards, valuation methods of insurance liability on an economic value basis and solvency margin
standard trends, as well as the analysis of Sony Life’s internal mortality and morbidity rates data.
Major differences between the internal model approach and the QIS5 approach are as follows:(1) Market risk
Market risk quantification follows the QIS5 approach in principle. However, Sony Life modified risk factors specified in QIS5 standard
methodology to make them more suitable in light of the market risk attribute to which Sony Life is exposed, where risk factors specified in
QIS5 or its previous risk measure is considered unable to reflect enough of the risk amount at a 99.5% confidence level.
For interest rate risk in Japanese yen, principal component analysis is employed, where yield curve changes are disaggregated into threecomponents—parallel shift, twist, and butterfly—and the yield curve is shocked by each component, to capture the risk of yield curvechanges more precisely. For other risks, major stress parameters different from QIS5 include 45% for listed stocks, 100% for subsidiaries
and affiliated companies’ stocks, and 30% for currency risk.
(2) Insurance underwriting risk
Quantification of mortality and longevity risks follows the QIS5 approach.
Quantification of morbidity, lapse, expense, and catastrophe risks follows the QIS4 approach. In particular, for the lapse up/down stress inthe Health module, because QIS5 sets the parameters at 20%, which is significantly lower than for other products, Sony Life has chosen to
keep the parameters at 50%.
(3) Operational risk
QIS5 is followed.
(4) Correlation parameters
Correlation parameters follow QIS5 except that the correlation parameter between Global and Other equities is set to one to exclude any
diversification effect while it is set to 0.75 under QIS5.

3- 08 Free surplus
Free surplus is the amount of adjusted net worth other than that for required capital.

3- 09 Value of existing business
The value of existing business is calculated as the present value of certainty-equivalent profit less the time value of options and guarantees,
the frictional costs and the cost of non-hedgeable risks. New business value is calculated using the same method.

3- 10 Present value of certainty-equivalent profit
The present value of certainty-equivalent profit is the present value of profit based on the future cash flows generated from the coveredbusiness. The risk-free rate is used as the assumed investment return on all assets and the discount rate.
The present value of certainty-equivalent profit reflects the intrinsic value of options and guarantees.

108 Sony Financial Holdings Inc. Financial Data Book 2015

Sony Life MCEV

3- 11 Time value of options and guarantees
Sony Life has calculated the time value of options and guarantees using the stochastic method with risk-neutral scenarios. The time valueof options and guarantees is calculated as the difference between the present value of certainty-equivalent profit and the present value ofstochastic future profits.
The time value of options and guarantees considers the following items:• Minimum guarantees of variable life insurance
The excess of account value over the scheduled policy reserves is attributed to policyholders. However, when the account value is lessthan the scheduled policy reserves, the cost incurred from executing guaranteed minimum death benefits for variable life insurance isattributed to shareholders.
• Minimum interest rate guarantee for interest rate sensitive whole life insurance
When the investment return exceeds the assumed interest rate, the outperforming portion is credited to policyholder account value.
However, when the investment return underperforms the assumed interest rate, the cost for the difference is attributed to shareholders,
as the assumed interest rate is guaranteed.
• Interest dividend for semi-participating products
When the investment return exceeds the assumed interest rate, the outperforming portion is credited to the fund for policyholder dividends and paid to policyholders every five years as interest dividends. Accordingly, none of such interest gains would be attributed toshareholders, while interest losses would be attributed to shareholders.
• Surrender options
Policyholders have various options in insurance contracts. Reflected among them are the costs of policyholders’ exercising the right ofsurrender in the event of increased interest rates. Since Sony Life has not identified explicit correlations that relate interest rates or thelevel of account value against the minimum guarantee amount to lapse and surrender rates for policies other than variable insurance,
Sony Life has developed dynamic surrender rates by examining experience on similar products, and taking into account current domestic
and overseas practices. Going forward, Sony Life will strive to improve its approach to dynamic surrender assumptions for the relevant
products by carefully monitoring experience data and referring to experience with similar products and trends of practice in Japan andother countries.

3- 12 Frictional costs
Sony Life has calculated frictional costs as the present value of investment costs and taxes on assets backing the required capital at eachpoint of time in the future.

3- 13 Cost of non-hedgeable risks
As risks regarding the asymmetric nature of cash flows not reflected in the present value of certainty-equivalent profit are fully reflected in
the time value of options and guarantees, Sony Life has reflected an allowance for the uncertainty of non-economic assumptions and the
portion of economic assumptions considered non-hedgeable with respect to the cost of non-hedgeable risks.
Specifically, Sony Life has assumed a risk margin based on the method prescribed in QIS5 of the EU Solvency II framework as the costof non-hedgeable risks and calculated it using the cost of capital approach. It should be noted that the following points are different fromthe method prescribed in QIS5:• Unavoidable market risk which is not clearly defined in QIS5 specifications is set to the uncertainty of the risk-free rates beyond the 40thyear for Japanese yen and the 30th year for U.S. dollars.
• Catastrophe risk and lapse risk in the Health module follows the QIS4 approach as described in Section 3-07 (2).
• Counterparty default risk has not been reflected in the non-hedgeable risks as its impact is limited.
• Sony Life has used risk amounts quantified after taking into consideration the risk mitigation effect through policyholder dividends without
any adjustments.
• Sony Life has used the cost of capital rate described in Section 3-14.

3- 14 Cost of capital rate
QIS5 of the EU Solvency II has set a cost of capital rate at 6%, which is used for the cost of capital calculation. On the other hand, theCRO (Chief Risk Officer) Forum comprising CROs from leading insurance companies in Europe proposed that 2.5% to 4.5% would be theappropriate level based on several trial calculations. Following the philosophy of the CRO Forum’s approach, Sony Life has decided to use
2.5% for the cost of capital rate consistent with the MCEV framework considering Japanese long-term stock risk premiums, the beta ofSony Financial Holdings Inc. and the anticipated impact of the equity risk exposure of Sony Life on the beta of Sony Financial Holdings Inc.,
which is a hedgeable risk. However, Sony Life may revise the method of setting the cost of capital rate in the future as an industry standard
has not yet been established.

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. Sony Life has received an opinion from Milliman, Inc. For further details,
please refer to Sony Life’s press release of “Disclosure of Market Consistent Embedded Value as of March 31, 2015” (http://www.
sonyfh.co.jp/index_en.html)

Sony Financial Holdings Inc. Financial Data Book 2015 109

一般的な生命保険の収支イメージ図

Sony Life MCEV

収益の発生

契約日
期間

4 Overview of MCEV

一般的な生命保険の収支イメージ図

4- 01 What is EV?

収益の発生
費用の発生

Embedded value (EV) is an indicator used to evaluate the corporate value of a life insurance business. Many insurance companies
契約日
EV の構造in Europe
disclose EV as part of their financial reports and use EV as an internal management tool. Under Japanese GAAP for life
貸借対照表等から計算される保有契約の将来価値
insurance companies, the balance sheets do not indicate the present value of future profits from existing business, while EV
修正純資産（保有契約価値）EV ＝期間
indicates, the present value of future profits
from existing business along with total
net assets of an insurance company.
（今までの事業活動の成果）（保有している契約から、将来見込まれる利益）
The CFO Forum, formed by the Chief Financial Officers (CFOs) of major European insurance companies published the European
ソニー生命は、毎年新しいお客さまからご契約をいただいていますが、EV は、ある計算日時点の純資産と保有契約の将来価値の合計です
Embedded Value Principles(EEV Principles) in May 2004. This led to the disclosure by many leading European insurers of EEV
ので、将来獲得するであろう新契約の価値は、含まれていません。
費用の発生
based on market consistent methods.
However,as the EEV Principles allow various calculation methodologies, the CFO Forum published the MCEV Principles in June
EV の構造保有契約の将来価値2008 in order to make EV information 貸借対照表等から計算される
more effective and appropriate for investors by streamlining
MCEV disclosure standards for
修正純資産（保有契約価値）EV ＝international use.
（今までの事業活動の成果）（保有している契約から、将来見込まれる利益）
MCEV represents the present value of the current and future distributable profits to shareholders generated from assets allocated
ソニー生命は、毎年新しいお客さまからご契約をいただいていますが、
to the covered businessafter sufficient
allowance for the aggregate risksEV
in は、
theある計算日時点の純資産と保有契約の将来価値の合計ですcovered business. MCEV is calculated as the sum
ので、将来獲得するであろう新契約の価値は、含まれていません。
of adjusted net worth and the value of existing business. However, MCEV is calculated based on the policies in force on the calculation date, and does not include the value of new business it may write in the future. (It is generally believed that the value of new
business must be taken into consideration when evaluating the corporate value of an insurance company.)++

MCEV structure

MCEV ＝Adjusted net worth calculated
from balance sheets, etc.
(Results of business activities to date)+

Future value of existing business(Value of existing business)(Expected future profits from existing business)

SonystructureLife concludes policies with new customers each year, but MCEV represents the future value of net assets and existing
MCEV
business on a certain balance sheet date, and does not include the value of new business it may write in the future.

MCEV ＝Adjusted net worth calculated
from balance sheets, etc.
(Results of business activities to date)+

Future value of existing business(Value of existing business)(Expected future profits from existing business)

The correlation between MCEV and balance sheets (under Japanese GAAP) is as follows. Adjusted net worth is the total amount of
the net assets line item on the balance sheets, adding items such as reserve for price fluctuations, contingency reserve and unrealCorrelation
betweensheets(underJapanese
GAAP)
and
MCEV
ized gains
or Lifelosseson balanceheld-to-maturity
securities
and other
items,
intangible
fixed
and otherSonyconcludes
policieswith newcustomers
each year,
butminus
MCEV
represents
the assets
future valueof netitems,
assetsandand adjusting
existing forbusinessoneffect.
a certainbalancedate, anddoes notincludethe value
business it may writein thefuture.the present value
the amountof taxThe
value sheetof existing
businessis thepresent
valueofofnew
certainty-equivalentprofit,namelyof profit basedon future cash
flows generated from the covered business, minus
the time value of options and guarantees, the cost
JapaneseGAAP
MCEV
of non-hedgeable risks and other items, which approximately equates to the value of statutory policy reserves minus policy reservebased on market value (after tax).
Market value-based
policy reserve
Statutory (book value)policy reserve
Correlation between balance
sheets (under Japanese GAAP) and MCEV
Statutory
Correlation
between balance sheets (under JapaneseGAAP) and MCEV
Marketasset
value-based
Value of existing businessasset
Japanese GAAPMCEVNet assets

Statutory
asset

Adjusted net worth

Statutory (book value)policy reserve
Marketvalue-based
asset
Net assets

Adjusted net worth

Net assets
Market value-based
reserve
Unrealizedpolicy
gains orlosses on heldto-maturity securities and other items
Value of existing businessNet assets
Unrealized gains or losses on heldto-maturity securities and other items

110 Sony Financial Holdings Inc. Financial Data Book 2015

Marketvalue-based
net assets(=MCEV)

Marketvalue-based
net assets(=MCEV)Sony Life MCEV

4- 02 Sony Life’s Initiatives
Recognizing EV as a useful indicator of corporate value, and a supplementary to the financial information based on Japanese
GAAP from an early stage, Sony Life has been disclosing traditional embedded value (Traditional EV) from March 31, 2005, andthen MCEV based on MCEV Principles from March 31, 2008.
Meanwhile, Sony Life engages in profit and risk management on the basis of economic value, and has been disclosing risk
amount based on economic value since March 31, 2012, to promote better understanding of its financial soundness based on
economic value. The risk amount based on economic value* refers to the total amount of Sony Life’s risks, comprehensively examined
and including insurance risk and market-related risk. Sony Life’s risk amount based on economic value (after tax) amounted to¥745.5 billion as of March 31, 2015.
The breakdown of the risk amount is as follows:(Billions of yen)

As of March 3 1,

Insurance risk
Market-related risk

Of which interest rate risk 1
Operational risk
Counter party risk
Variance effectRisk amount based on economic value
1

2014

2015

¥ 654.5¥ 724.2

240.0

287.0
218.5
25.9
1.8
(293.4)
745.5

180.9
26.3
1.3
(257.8)664.3

Interest rate risk is calculated as the amount before excluding the variance effect within market-related risk.

As of March 3 1,

MCEV

2014

2015

¥1,221.3¥1,322.9

Sony Life is making every effort to ensure its financial soundness by maintaining the risk amount based on economic value at an
appropriate level relative to MCEV, which is capital based on economic value.
Note: The solvency risk capital on an economic value basis is calibrated at VaR (99.5%) over one year and based on the internal model, which is asimilar but modified model based on the EU Solvency II (QIS5) standard method.

Sony Financial Holdings Inc. Financial Data Book 2015 111

Sony Life MCEV

5 Glossary of MCEV-related Terminology

A

I

R

Appraisal value

Implied volatility

Required capital• Corporate value based on projected cash
flows receivable for shareholders fromexisting business and future new business.
It is defined as the current MCEV plus new
business value acquired in the future.

Asymmetric risk

• The risk where symmetric upward anddownward changes on assumptions do not
result in symmetric changes in cash flow.
Such risk includes minimum guarantee ofvariable life insurance and policyholder dividend payment. These risks are evaluatedwith a stochastic method and presented asa time value of options and guarantees.

B
Best estimate assumption• The assumption that is most likely to occur
in the future.

C
Calibration• To set various stochastic model parameters
in a market-consistent manner.

Cost of capital approach• One of the approaches to calculate the risk
margin. The cost of risk is determined bytaking the present value of the cost to holdcapital required in future periods.

Cost of non-hedgeable risk

• The present value of the cost to holdrequired capital to cover future non-hedgeable risks. As risks regarding the asymmetricnature of cash flows not reflected in thepresent value of certainty-equivalent profit
are fully reflected in the time value of options
and guarantees, Sony Life has reflected thefollowing in this cost: allowance for uncertainty of non-economic assumptions andthe portion of economic assumptions considered non-hedgeable with respect to thecost of non-hedgeable risks.

E
EU Solvency II• A new solvency regulation based on economic value to be applied uniformly within
the EU that the European Commission ispreparing to implement.

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

Frictional costs• The present value of investment costs andtaxes on assets backing the required capitalat each point of time in the future.

• The expected rate of future variability
embedded in current option prices, andrepresents the expected value of the market
against the price fluctuation.

L
Look through• To measure the impact of an action on an
entire business group rather than only on aparticular part of the group.

N
Non-financial risk

• Examples are mortality risk, longevity risk,
disability risk, operating expense risk,surrender risk, and operational risk.

Non-hedgeable non-financial risk
• A non-financial risk such that deep andliquid capital markets do not exist to hedge
such risk.

Non-hedgeable risk

• Non-hedgeable risk is composed of
non-hedgeable financial risk andnon-hedgeable non-financial risk.

O
Options and guarantees• The following are some features of options
and guarantees:
・Policy cash flow would be changed byexercising options granted to the policyholder. An example of such features is theexercise of the surrender option.
・It includes guarantee of benefits orpolicyholder values. An example is aminimum death benefit guarantee forvariable life insurance.

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

Q
QIS4• Quantitative Impact Study. Conducted prior
to implementation of the EU Solvency II. The
4th study was conducted in May 2008 andis referred to as QIS4.

QIS5• Quantitative Impact Study following the
QIS4. It was executed between August andNovember 2010.

112 Sony Financial Holdings Inc. Financial Data Book 2015

• The MCEV Principles define required capitalas the capital necessary to hold in excess
of statutory policy reserves (excluding contingency reserve), and it is considered to be
the larger of the solvency capital to meetthe statutory required minimum level orthe capital necessary to meet internal objectives or to achieve the company’s targeted
credit rating.
The required capital of Sony Life is set as
the larger of the amount of capital corresponding to the solvency margin ratio of
200% or the amount of capital to cover risks
based on the internal model on an economic
value basis.

Risk-free rate

• The reference rate defined in the MCEV
Principles. The MCEV Principles state that itshould be the swap rate of the currency of
cash flows.

Risk margin• The cost to hold capital to cover nonhedgeable risks reflected in evaluating theinsurance liability on an economic value
basis.

Risk neutral probability• A pseudo probability derived so that thepresent value of future expected values
under multiple scenarios discounted withcurrent risk-free rates is equal to the current
value.

Risk neutral scenario• An interest rate scenario generated underrisk-neutral probabilities.

T
Technical provision• The value of liability on an economic value
basis, which equals the present value ofbest estimate cash flows plus the risk
margin.

Time value and intrinsic value• An option value that has two elements: timevalue and intrinsic value. Intrinsic value is theoption value under certainty-equivalent conditions. Time value is the value of options
other than intrinsic value, which is calculated
as the difference between the present valueof certainty-equivalent profit and the present
value of stochastic future profit.

Sony Life MCEVSony Financial Holdings Inc. Financial Data Book 2015 113

Sony Financial Group