Contents of the Financial Data Book
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)
29 6. Fair Value Information on Securities(Company Total)
Performance Indicators of Sony Life (Non-consolidated)
35
36
43
44

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)
52 5. Status of Insurance Claims Paying Ability
53 6. Balance of Separate Account Assets
53 7. Status of Individual Variable Life Insurance andIndividual Variable Annuities
54 8. Number of Agencies
54 9. Number of Employees and Recruits
55 10. Average Salary

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

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

Sony Bank Financial Data (Consolidated)
72 Consolidated Balance Sheets
74 Consolidated Statements of Income
74 Consolidated Statements of Comprehensive Income
75 Consolidated Statements of Changes in Net Assets
77 Consolidated Statements of Cash Flows
Sony Bank Financial Data (Non-consolidated)
78 Balance Sheets
80 Statements of Income
81 Statements of Changes in Net Assets
83 1. Loans by Borrower Category
83 2. Risk-monitored Loans
83 3. Profit and Loss
86 4. Fair Value Information
Performance Indicators of Sony Bank (Non-consolidated)
91
91
92
94

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

MCEV Results for Sony Life
96
101
105
108
110
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.html

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

2010

2011

2012

2013

2014

¥ 978,991¥1,002,201¥1,078,070¥1,259,041¥1,319,766

Ordinary profit

84,37376,86074,62579,252

76,136

Net income

48,126

41,71632,81245,06440,504Comprehensive income

71,066

31,96360,37696,22544,794

Total net assets

269,439

294,877

347,800

435,444467,050

6,001,088

6,597,140

7,241,414

8,096,164

8,841,382

Net assets per share (yen)619.40677.88796.64997.94

1,070.75

Net income per share (yen)110.64

95.90

75.43

103.6093.11

Total assets

Diluted net income per share (yen)

̶

̶

̶

̶

̶

Cash flows from operating activities

494,225

527,582

524,264

580,882

601,738

Cash flows from investing activities(378,706)(559,771)(512,198)(550,159)(549,346)

Cash flows from financing activities(6,580)(6,560)

1,782(5,017)(13,522)200,593

161,803

175,651

201,404

240,279

6,982

7,181

7,485

7,841

8,150

Cash and cash equivalents at end of fiscal year
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, 2008.

%

For the years ended March 31,

2010

2011

2012

2013

2014

Consolidated adjusted ROE

70.2%(3.1%)

13.1%

3.3%

14.2%

Sony Life adjusted ROE

77.7

(3.8)

14.1

3.3

14.9

Sony Assurance adjusted ROE

11.6

5.5

(1.2)

(0.1)

9.8

Sony Bank ROE

2.2

2.7

2.9

4.3

4.8

Each ROE is calculated as follows:(1) Consolidated adjusted ROE• Numerator = Sony Life: (Net increase in MCEV + Dividends)+ Sony Assurance: (Net income (loss) + Increase in provision for catastrophe reserve (after tax) + Increase in reserve for pricefluctuations (after tax))+ Sony Bank: Net income (loss)• Denominator = Sony Life: The average of (MCEV at previous fiscal year-end – Dividends + MCEV at current fiscal year-end)+ Sony Assurance: The average of (Net assets + Catastrophe reserve (after tax) + Reserve for price fluctuations (after tax)) as ofthe previous fiscal year-end and the current fiscal year-end+ Sony Bank: The average of net assets as of the previous fiscal year-end and the current fiscal year-end(2) Sony Life adjusted ROE• Numerator = Net increase in MCEV + Dividends• Denominator = The average of (MCEV at previous fiscal year-end – Dividends + MCEV at current fiscal year-end)(3) Sony Assurance adjusted ROE• Numerator = Net income (loss) + Increase in provision for catastrophe reserve (after tax) + Increase in provision for reserve for price fluctuations (after tax)
• Denominator = The average of (Net assets + Catastrophe reserve (after tax) + Reserve for price fluctuations (after tax)) as of the previous fiscal
year-end and the current fiscal year-end(4) Sony Bank ROE• Numerator = Net income (loss)• Denominator = The average of net assets as of the previous fiscal year-end and the current fiscal year-end

Sony Financial Holdings Inc. Financial Data Book 20141

SFH Consolidated Financial Statements

Consolidated Balance Sheets
Sony Financial Holdings Inc.
As of March 31, 2013 and 2014
(Millions of yen)

2013

2014

Cash and due from banks¥ 104,142¥ 204,546

Call loans and bills bought

107,088

40,628

Monetary trusts

324,305

325,831

Securities

6,202,333

6,822,151

Loans

1,115,330

1,211,638

73,21771,565Land

31,08930,103

Buildings

39,69637,030

Leased assets

302

106

Construction in progress

672

947

Other tangible fixed assets

1,456

3,376

38,232

36,774

Software37,94436,571

Goodwill

258

179

Other intangible fixed assets

29

24

Due from reinsurers

110

158

Foreign exchanges

7,954

7,752

107,345

100,503̶

1,730

Deferred tax assets

17,98019,872

Reserve for possible loan losses(1,877)(1,769)¥8,096,164¥8,841,382

AssetsTangible fixed assets

Intangible fixed assets

Other assets
Net defined benefit asset

Total Assets

2

Sony Financial Holdings Inc. Financial Data Book 2014

SFH Consolidated Financial Statements(Millions of yen)

2013

2014

¥5,601,060¥6,263,315

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

53,246

57,4005,543,540

6,201,676

4,273

4,237

Due to agencies

2,431

2,169

Due to reinsurers

600

650

1,857,302

1,889,970

Deposits
Call money and bills sold

10,0006,000

Borrowed money

2,000

20,000Foreign exchanges

87

40

Bonds payable

20,00020,000

Other liabilities

106,365

95,725Reserve for employees’ bonuses

3,085

3,204

Reserve for employees’ retirement benefits

24,216̶̶

30,272

Net defined benefit liability
Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

411

250

32,34441,65732,34441,657

275

539

536

536

7,660,719

8,374,332

Net Assets
Shareholders’ equity
Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

135,160

164,790

̶Treasury Stock(0)350,337

379,967

Net unrealized gains on other securities, net of taxes

88,32992,002

Net deferred losses on hedging instruments, net of taxes(3,047)(2,388)Land revaluation, net of taxes(1,513)(1,513)

Total shareholders’ equity
Accumulated other comprehensive income

Foreign currency translation adjustments̶0Remeasurements of defined benefit plans, net of taxes̶(2,292)

83,76785,807

Total accumulated other comprehensive income
Minority interests

1,339

1,275

Total Net Assets

435,444467,050¥8,096,164¥8,841,382

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 20143

SFH Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Sony Financial Holdings Inc.
For the years ended March 31, 2013 and 2014

(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)

2013

2014

¥1,259,041¥1,319,766

1,140,184

1,194,315

925,075

959,911

923,672

958,585

1,402

1,325

199,549

211,829

Interest income and dividends

108,153

121,666

Income from monetary trusts, net

5,259

5,311

Gains on sale of securities

2,522

773

Investment income

Gains on redemption of securities̶2

Gains on derivatives, net

̶

172

Foreign exchange gains, net

̶

1,183

Other investment income
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
Investment income
Interest income and dividends

13

47

83,601

82,67015,55922,57584,71189,863

83,61588,63983,582

88,600

33

39

1,021

1,199

1,027

1,209

Gains on sale of securities

26

25

Gains on redemption of securities̶3Transfer to interest and dividends on deposits of premiums

(33)

(39)

Other ordinary income

74

24

34,14535,58625,954

26,328Interest income on loans

13,877

14,134

Interest income and dividends on securities

12,007

12,077

Ordinary Revenues from the Banking Business
Interest income

Interest income on call loans and bills bought

13

8Interest income on deposits with banks

55

107

Other interest income

00Fees and commissions

5,260

4,928

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

2,815

4,174

1,874

2,782

940

1,391

114

155

(Continued on next page)

4

Sony Financial Holdings Inc. Financial Data Book 2014

SFH Consolidated Financial Statements(Millions of yen)

2013

2014

¥1,179,789¥1,243,629

1,069,007

1,128,787

293,938

327,257

71,06577,413

Annuity payments

9,571

10,768Insurance benefits

46,80955,510Surrender payments

161,873

178,402

2,649

3,203

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

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
Investment expenses
Interest expenses

1,968

1,959

630,575

650,764607

55

629,955

650,70312

511,450

8,182

43

48

1,587

528

Devaluation losses on securities

327

̶

Losses on derivatives, net

226̶

Foreign exchange losses, net

1,253

̶

Provision for reserve for possible loan losses

21

6

Depreciation of real estate for rent and others

2,000

1,952

Other investment expenses

5,990

5,646

Operating expenses

108,849

113,442

Other ordinary expenses

24,192

29,140Losses on sale of securities

Ordinary Expenses from the Non-life Insurance Business

81,70486,189Underwriting expenses

61,40165,030Net losses paid

47,153

46,183

Loss adjustment expenses

5,656

6,367

Net commission and brokerage fees

945

948

Provision for reserve for outstanding losses

4,407

4,098

Provision for underwriting reserves

3,238

7,433

0

0

7

7

Losses on sale of securities

3

5

Losses on redemption of securities

3

2

20,27921,15016

0

Other underwriting expenses
Investment expenses

Operating, general and administrative expenses
Other ordinary expenses(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2014

5

SFH Consolidated Financial Statements(Millions of yen)

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

2013

2014

¥ 29,077¥ 28,652

Interest expenses
Interest expenses on deposits

7,811

6,286

6,296

4,905

Interest expenses on call money and bills sold

10

6Interest on borrowed money

86

26

Interest expenses on bonds
Interest expenses on interest rate swaps

61

119

1,355

1,227

0

0

Fees and commissions

Other interest expenses

1,546

1,735

Other operating expenses

2,568

3,411

General and administrative expenses

16,76016,920

Other ordinary expenses

389

298

Ordinary Profit

79,252

76,136Extraordinary Losses

9,257

9,508

Losses on disposal of fixed assets

113

137

Impairment losses

962

36

6,964

9,312

6,964

9,312

1,216

̶

Provision for special reserves
Provision for reserve for price fluctuations
Losses on sale of shares of subsidiaries and affiliates

020

Provision for Reserve for Policyholders’ Dividends

Others

2,104

2,232

Income before Income Taxes

67,89064,396
26,451

Income Taxes̶Current

29,366

Income Taxes̶Deferred(6,620)(2,517)

Total Income Taxes

22,74623,933

Income before Minority Interests

45,14340,462

Minority Interests in Income (losses)

78

(42)

Net Income¥ 45,064¥ 40,504(2) Consolidated Statements of Comprehensive Income

2013

2014

Income before Minority Interests¥45,143¥40,462(Millions of yen)

Other Comprehensive Income
Net unrealized gains on other securities, net of taxes

51,381

3,672

Net deferred gains or losses on hedging instruments, net of taxes

(633)

659

Land revaluation, net of taxes

(118)

̶

Foreign currency translation adjustments

453

0

Share of other comprehensive income of affiliates accounted for using equity method(1)

0

51,082

4,332¥96,225¥44,794

Comprehensive income attributable to parent company¥96,146¥44,837

Comprehensive income attributable to minority interests¥¥

Total other comprehensive income
Comprehensive Income(Details)

6

Sony Financial Holdings Inc. Financial Data Book 2014

78

(42)

SFH Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Sony Financial Holdings Inc.
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013
Shareholders’ Equity
Commonstock

CapitalsurplusRetainedearnings

Treasury
stock

Total
shareholders’equity¥19,900¥195,277¥ 98,677¥̶¥313,854

Dividends from surplus̶̶

(8,700)̶

(8,700)Net income̶̶

45,064

̶

45,064Purchase of treasury stock

̶

̶

̶

̶

̶

Reversal of land revaluation

̶

̶

118

̶

118

Net changes of items other than shareholders’ equity

̶

̶

̶

̶

̶

̶

̶

36,482

̶

36,482¥19,900¥195,277¥135,160¥̶

¥350,337

Balance at the beginning of the current period
Changes during the period

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

2013
Accumulated Other Comprehensive Income
Net unrealized
gains onother securities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes¥36,949

Dividends from surplus
Net incomeLandrevaluation,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes¥(2,414)¥(1,395)¥(453)

̶

̶

̶

̶

̶

̶

Purchase of treasury stock̶̶

Reversal of land revaluation̶̶

Net changes of items otherthan shareholders’ equity

51,380Total changes during
the period
Balance at the end of
the current period

Balance at the beginning of
the current period

Totalaccumulated
othercomprehensive
incomeMinority
Interests

Total Net
Assets¥̶¥32,685¥1,260¥347,800

̶

̶

̶

̶

(8,700)

̶

̶

̶

̶

45,064

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

118

(633)

(118)

453

̶

51,08278

51,161

51,380

(633)

(118)

453

̶

51,08278

87,643¥88,329¥(3,047)¥(1,513)¥ ̶¥̶¥83,767¥1,339¥435,444

Changes during the period(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 20147

SFH Consolidated Financial Statements

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

2014
Shareholders Equity
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

̶

̶

̶

̶

̶

̶

̶

29,629(0)

29,629¥19,900¥195,277¥164,790¥ (0)¥379,967

Balance at the beginning of the current period

Treasury
stock

Total
shareholders’equityCommonstock

Changes during the period

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

2014
Accumulated Other Comprehensive Income

Balance at the beginning of
the current period

Net unrealized
gains on othersecurities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes

Landrevaluation,
net of taxes

Foreigncurrencytranslation
adjustments¥88,329¥(3,047)¥(1,513)¥̶Remeasurements ofdefinedbenefit plans,
net of taxes

¥

Total
accumulated
othercomprehensive
incomeMinority
Interests

Total Net
Assets̶¥83,767¥1,339¥435,444

Changes during the period

8

Dividends from surplus

̶

̶

̶

̶

̶

̶

̶

(10,875)

Net income

̶

̶

̶

̶

̶

̶

̶

40,504Purchase of treasury stock

̶

̶

̶

̶

̶

̶

̶

(0)

Net changes of items otherthan shareholders’ equity

3,672

659

̶

0

(2,292)

2,039

(64)

1,975

Total changes during
the period

3,672

659

̶

0

(2,292)

2,039

(64)

31,605

Balance at the end of
the current period¥92,002¥(2,388)¥(1,513)¥ 0¥(2,292)¥85,807¥1,275¥467,050

Sony Financial Holdings Inc. Financial Data Book 2014

SFH Consolidated Financial Statements

Consolidated Statements of Cash Flows
Sony Financial Holdings Inc.
For the years ended March 31, 2013 and 2014
(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 in reserve for outstanding claims
Increase in policy reserve
Increase in interest portion of reserve for policyholders’ dividends
Increase in reserve for policyholders’ dividends
Increase (decrease) in reserve for possible loan losses
Increase in reserve for employees’ retirement benefits
Increase in net defined benefit liability
Increase (decrease) in reserve for directors’ retirement benefits
Increase in reserve for price fluctuations
Increase in reserve for financial products transaction liabilities
Interest income and dividends
Gains on securities
Interest expenses
Exchange gains
Losses on disposal of tangible fixed assets
Equity in losses of affiliates
Net increase in loans
Net increase in deposits
Net increase in borrowed money (excluding subordinated borrowings)
Net decrease in call loans and bills bought
Net decrease in call money and bills soldNet 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 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 used in investment transactions
Total of net cash provided by operating activities and investment transactions
Purchases of tangible fixed assets
Proceeds from sale of tangible fixed assets
Purchases of intangible fixed assets
Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation
Purchase of securities of a subsidiary
Purchase of securities of affiliates
OthersNet cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of bonds
Cash dividends paid
Net decrease in subordinated borrowings
Purchase of treasury stock
Balance from securitization of lease receivables
OthersNet cash 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 fiscal year
Cash and cash equivalents at the end of the fiscal year

2013

2014

¥ 67,890
2,000
7,784
962
580
5,015
633,193
12
2,104
28
2,913

¥ 64,396
1,952
9,147
36
79
4,153
658,136
5
2,232
(108)

̶

2,865
(161)
9,312

57
6,964
0
(135,136)(87,294)
7,855(35,508)
69
1,718(134,664)
96,408
̶
̶
̶

981
51
27,437
471,428
146,015(8,330)(1,966)(26,264)
580,882(4,942)5,300(973,738)
462,518(47,927)
21,144(53)(537,698)
43,184(1,599)̶(11,869)
1,035
(30)
̶

2
(550,159)
9,965(8,697)̶̶

(6,500)214(5,017)47
25,752
175,651¥ 201,404

̶̶(149,204)(74,996)
6,334(30,559)
146
1,538(87,193)
33,55920,0004,000(4,000)
202
(47)
7,043
478,874
160,737(6,465)(2,273)(29,134)
601,738(2,301)
5,100(990,899)
480,946(54,102)25,405
̶

(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

Note: The above Consolidated Statements of Cash Flows have been prepared based on Article 210-10 of Ordinance for Enforcement of the Insurance BusinessAct of Japan.

Sony Financial Holdings Inc. Financial Data Book 20149

Sony Life

Financial Data (Non-consolidated)
Balance Sheets
Sony Life Insurance Co., Ltd.
As of March 31, 2013 and 2014
(Millions of yen)

2013

2014
Composition(%)

AmountComposition(%)

AmountAssets:Cash and depositsCash¥27,373

0.5%¥

15,82728

4Deposits

27,344

15,823

Call loans

97,088

Monetary trusts
Securities

1.6

34,628306,1225.1

305,346

4.6

87.5

5,954,716

89.9

4,669,003

5,316,110

Japanese municipal bonds

10,208

3,869Japanese corporate bonds

41,092

38,746

Japanese stocks

61,88470,442Foreign securities

275,439

342,187

Other securities

153,906

Policy loans
Commercial loans
Tangible fixed assets

145,104

183,359
2.4

154,219

145,019

154,18085

38

70,9691.2

67,100Land

31,08930,103

Buildings

39,21236,429185

19

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

0.5

5,211,535

Japanese government bonds

Loans

0.2%

482
26,102

2.3

1.0

548
0.4

26,092

23,8690.4

23,859

9

9

100

0.0

138

0.0

53,0230.9

53,7870.8

31,35830,954

Prepaid expenses

1,543

1,532

Accrued income

15,377

16,600

Money on deposits

4,185

4,182

Advance payments

379

400

Others179

117

Prepaid pension costs

1,841

0.0

1,867

0.0

Deferred tax assets

13,7240.2

13,643

0.2

Reserve for possible loan losses
Total Assets

10 Sony Financial Holdings Inc. Financial Data Book 2014

(235)

(0.0)

(242)

(0.0)

¥5,952,750

100.0%¥6,624,903

100.0%

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

2013

2014

AmountComposition(%)

AmountComposition(%)¥5,501,850

92.4%¥6,152,574

92.9%

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

24,646

24,702

5,472,930

6,123,633

4,273

4,237

Due to agencies

2,431

0.0

2,169

0.0

Due to reinsurers

547

0.0

567

0.0

Other liabilities

49,8440.8

32,812

0.5

Accrued income tax

15,586

Other payables

1,222

8,702
1,213

Accrued expenses

14,07913,566

Unearned income

907

939

Deposits received

1,090

823

Deposits received for guarantee

5,307

5,058

172

̶

Derivative liabilities
Lease obligations

243

21

Asset retirement obligations

656

654

Policy suspense and other suspense

10,577

Reserve for employees’ retirement benefits

22,770Reserve for directors’ retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

1,832
0.4

25,389

0.4

171

0.0

66

0.0

32,264

0.5

41,5560.6

32,26441,556

536

0.0

536

0.0

5,610,417

94.2

6,255,673

94.4

Common stock

70,0001.2

70,0001.1

Capital surplus

5,865

0.1

5,865

0.1

3.2

211,461

Total Liabilities
Net Assets:

Capital reserve

5,865

Retained earnings

187,698

Earned reserve

15,47818,138Other retained earnings

172,219

193,323

Unappropriated retained earnings for the period

5,865

172,2193.2

193,323

Total shareholders’ equity

263,563

4.4

287,327

4.3

Net unrealized gains on other securities, net of taxes

80,283

1.3

83,416

1.3

Land revaluation, net of taxes(1,513)(0.0)(1,513)(0.0)
1.2

Total valuation and translation adjustments

78,7691.3

81,903

Total Net Assets

342,333

5.8

369,230

5.6¥5,952,750

100.0%¥6,624,903

100.0%

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2014 11

Sony Life Financial Data (Non-consolidated)

Statements of Income
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2013 and 2014
(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

2013

2014

¥1,142,274¥1,197,109

925,874

960,986

924,472

959,660

1,402

1,325

199,833

212,323

108,539

122,1600092,167106,187

Interest income from loans

5,450

5,691

Rent revenue from real estate

10,854

10,25067

31

Income from monetary trusts, net

Other interest income and dividends

5,259

5,311

Gains on sale of securities

2,420

773

Gains on redemption of securities̶2

Gains on derivatives, net

̶

172

Foreign exchange gains, net

̶

1,183

Other investment income
Gains on separate accounts, net
Other ordinary income

13

47

83,601

82,67016,566

23,799

Income for annuity riders

2,087

2,151

Income for deferred payment of claims

11,861

17,197

Other ordinary income

2,618

4,451

(Continued on next page)

12 Sony Financial Holdings Inc. Financial Data Book 2014

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

2013

2014

¥1,067,614¥1,127,904

293,929

327,257

Insurance claims

71,06077,413

Annuity payments

9,571

10,768

Ordinary Expenses
Insurance claims and other payments

Insurance benefits

46,80955,510Surrender payments

161,872

178,402

Refund to policyholders

2,649

3,203

Reinsurance premiums

1,965

1,959

630,529

650,764

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

607

55

629,909650,70312

5Investment expenses

11,686

8,506Interest expenses

43

48

1,587

528

327

̶

Losses on derivatives, net

226̶

Foreign exchange losses, net

1,176

̶

Provision for reserve for possible loan losses

21

6

Depreciation of real estate for rent and others

2,115

2,077

Other investment expenses

6,188

5,845

Operating expenses

109,060

113,868

Other ordinary expenses

22,40827,507

Payments of deferred claims

7,078

10,884

Taxes

7,929

7,981

Depreciation and amortization

4,150

5,064

Provision for reserve for employees’ retirement benefits

3,141

3,532

3

̶

Provision for policy reserves
Interest on policyholders’ dividend reserve

Losses on sale of securities
Devaluation losses on securities

Provision for reserve for directors’ retirement benefits
Others105

44

Ordinary Profit

74,65969,205(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2014 13

Sony Life Financial Data (Non-consolidated)

Statements of Income (Continued)(Millions of yen)

2013

Extraordinary Losses

2014¥ 8,961¥ 9,389

Losses on disposal of fixed assets

21

41

Impairment losses

962

36

6,945

9,291

6,945

9,291

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Losses on sale of shares of subsidiaries and affiliates

1,031

̶

̶

19

Provision for Reserve for Policyholders’ Dividends

2,104

2,232

Income Before Income Taxes

63,59457,583

Income Taxes̶current

28,774

21,953

Income Taxes̶deferred(7,624)(1,433)

Total Income Taxes

21,14920,519Net Income¥42,444¥37,063

Others14 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013
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¥13,238¥143,096¥156,335¥232,200

Dividends from surplus

̶

̶

̶

2,240

(13,440)(11,200)(11,200)

Net income

̶

̶

̶

̶

42,44442,44442,444

Reversal of land revaluation

̶

̶

̶

̶

118

118

118

Net changes of items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

̶

Balance at the beginning of the current
periodChanges during the period

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

̶

̶

̶

2,240

29,12331,36331,363¥70,000¥5,865¥5,865¥15,478¥172,219¥187,698¥263,563(Millions of yen)

2013
Valuation and Translation Adjustments
Net unrealized
gains on othersecurities,
net of taxes

Landrevaluation,
net of taxes

Totalvaluation andtranslation
adjustments

Total
Net Assets¥34,032¥(1,395)¥32,636¥264,836

Dividends from surplus

̶

̶

̶

(11,200)

Net income

̶

̶

̶

42,444

Balance at the beginning of the current period
Changes during the period

Reversal of land revaluation
Net changes of items other than shareholders’ equity

̶

̶

̶

118

46,251(118)

46,133

46,133

Total changes during the period

46,251(118)

46,13377,496

Balance at the end of the current period¥80,283¥(1,513)¥78,769¥ 342,333(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2014 15

Sony Life Financial Data (Non-consolidated)

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

2014
Shareholders’ Equity
Capital surplus

Retained earnings
Otherretainedearnings

Balance at the beginning of the current
periodCommonstock

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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

2,660

21,10323,76323,763¥70,000¥5,865¥5,865¥18,138¥193,323¥211,461¥287,327

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

2014
Valuation and Translation Adjustments

Balance at the beginning of the current period

Net unrealized
gains 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
Net income
Net changes of items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period

16 Sony Financial Holdings Inc. Financial Data Book 2014

̶

̶

̶

3,133

̶

3,133

3,133

3,133

̶

3,133

26,897¥83,416¥(1,513)¥81,903¥369,230

Sony Life Financial Data (Non-consolidated)

Statements of Cash Flows
Sony Life Insurance Co., Ltd.
For the years ended March 31, 2013 and 2014
(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 in reserve for outstanding claims
Increase in policy reserves
Increase in interest of reserve for policyholders’ dividends
Increase in reserve for policyholders’ dividends
Increase in reserve for possible loan losses
Increase in reserve for employees’ retirement benefits
Increase (decrease) in reserve for directors’ retirement benefits
Increase in reserve for price fluctuations
Interest income and dividends
Gains on securities
Interest expenses
Foreign exchange (gains) losses
Losses on disposal of tangible fixed assets
Increase in due from reinsurers
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 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 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
Proceeds from sales of investments in subsidiaries
Purchase of securities of a subsidiary
Purchase of securities of affiliates
Others, net
Net cash used in investing activities
Cash flows from financing activities
Cash dividends paid
Others, net
Net cash 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 fiscal year
Cash and cash equivalents at the end of the fiscal year

2013

2014

¥ 63,594
2,115
4,150
962
607
629,909
12
2,104
21
2,702
3
6,945
(108,539)(84,465)
43
1,176
14
(34)
18,110
766
(33)
9,697
2,531
552,398
115,520(43)(1,966)(5,821)(23,443)636,642¥ 57,583
2,077
5,064
36
55
650,703
5
2,232
6
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)
624,9265,300(666,251)
116,492(47,922)
21,142(53)(571,293)[65,349]
(481)

5,100
(770,519)
113,909(54,102)25,405̶̶(680,205)[(55,279)]
(682)
2,021

2,016
(30)

̶

̶

(7,282)(577,071)(3,500)(3,255)(685,622)(11,200)(18)(11,218)(0)
48,352
76,108¥ 124,461(13,300)(12)(13,312)2(74,006)
124,461¥ 50,455̶Sony Financial Holdings Inc. Financial Data Book 2014 17

Sony Life Financial Data (Non-consolidated)

1 Loans by Borrower Category(Millions of yen)

As of March 31,

Bankrupt and quasi-bankrupt loans

2013

¥

2014
̶

¥

̶

Doubtful loans̶̶Sub-standard loans̶̶

Subtotal̶̶[% to total]

[̶]

[̶]

Normal loans

147,608

156,815

Total¥147,608¥156,815

Notes: 1. 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 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,

2013

2014

¥ 6,897¥ 6,702

Insurance claims
Death benefits
Accidental benefits

209

595

Disability payments

1,158

1,405

Maturity benefits

1,402

1,272

Others

1,299

1,556

Subtotal

10,966

11,532

Annuity payments

514

163

Insurance benefits

4,982

5,323

Surrender payments

7,969

7,437

Deferred insurance benefits
Total, including others

18 Sony Financial Holdings Inc. Financial Data Book 2014

76

134

¥24,646¥24,702

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

2013

2014

¥5,207,101
4,707,813
499,288
149,711
106,528
43,18252
52¥5,840,272
5,257,428
582,844
164,451
115,818
48,6324141

̶̶

56,50356,50355,19655,196

̶
̶
̶
̶

̶
̶
̶
̶

5,413,369
4,870,898
542,471
59,561¥5,472,930¥4,930,459
542,471

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

3- 03 Breakdown of policy reserves(Millions of yen)
As of March 31,

Premium reserve
Unearned premiums
Refund reserve
Contingency reserve
Total

2013

2014

¥5,204,625
208,743¥5,859,446
200,515̶̶

59,561¥5,472,930

63,671¥6,123,633

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”

2013

2014

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 2014 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¥

Assumed interest rate̶%
6.00–6.25
6.00–6.25
2.75–6.25
1.90–4.00
1.50
1.50
1.50
1.50
1.00

̶

32,08451,722547,386
1,172,099
1,344,265
1,387,668
276,060
294,114
267,845

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)

2013

2014

¥30,991¥35,270

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 5, Paragraph 1-4 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)

2013

For the year ended March 31,

At the beginning of the current fiscal year
Increase due to interest
Decrease due to dividend payment
Provision for the current fiscal year
At the end of the current fiscal year

Individual life
insurance¥ 2,179
11
91
(161)
1,938
[1,468]

Individual
annuities

¥ 266
1
30
4
241
[131]

Asset-formation
insurance,
asset-formation
annuities

Group life
insuranceGroupannuities¥1,675
0
1,843
2,233
2,064
[0]

¥ 1

¥̶

¥̶

̶

̶
̶
̶
̶
[̶]

̶
̶
̶
̶
[̶]

1
28
28
[̶]

OthersTotal¥ 4,122
12
1,966
2,104
4,273
[1,599](Millions of yen)

2014

For the year ended March 31,

At the beginning of the current fiscal year
Increase due to interest
Decrease due to dividend payment
Provision for the current fiscal year
At the end of the current fiscal year

Asset-formation
insurance,
asset-formation
annuities

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥ 1,938
5
132
(27)
1,783
[1,412]

¥ 241
0
29
14
226
[131]

¥2,064
0
2,083
2,178
2,160
[0]

¥28

¥̶

¥̶

̶

̶
̶
̶
̶
[̶]

̶
̶
̶
̶
[̶]

Note: Figures in [ ] are accumulated dividends.

20 Sony Financial Holdings Inc. Financial Data Book 2014

28
67
67
[̶]

OthersTotal¥ 4,273
5
2,273
2,232
4,237
[1,544]

Sony Life Financial Data (Non-consolidated)

3- 07 Other reserves(Millions of yen)

2013
Balance atthe end of
the current
periodBalance atthe beginningof the current
periodFor the years ended March 31,

2014
Balance atthe end of
the current
periodBalance atthe beginningof the current
periodIncrease(decrease)

Increase(decrease)

Reserve for possible loan losses
General reserve for possible loan losses¥

Specific reserve for possible loan losses

0

¥

214

0

¥

235

(0)
21

¥

0

¥

0

235

¥

0

242

6

Reserve for loan losses from borrowers
in specific foreign countries

̶

̶

̶

̶

̶

̶

Reserve for employees’ retirement benefits

20,31022,7702,459

22,77025,3892,619

Reserve for directors’ retirement benefits
Reserve for price fluctuations

168

171

3

171

66

(104)

25,31932,264

6,945

32,26441,5569,291

3- 08 Insurance premiums(Millions of yen)

For the years ended March 31,

2013

2014

Individual life insurance¥905,514¥936,009

Lump-sum payment

117,473

162,027

Annual payment

261,534

220,465

Semi-annual payment

9,485

9,986

Monthly payment

517,021543,530

Individual annuities

12,045

16,469

957

3,504

3,428

3,990

Lump-sum payment
Annual payment
Semi-annual payment

190

216

Monthly payment

7,469

8,757

Group life insurance

4,206

4,523

Group annuities
Total, including others

2,705

2,658

¥924,472¥959,660

3- 09 Insurance claims(Millions of yen)

2013

Asset-formation
insurance,
asset-formation
annuities

Total

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥42,178¥43,716¥̶

¥1,391¥̶¥̶¥̶For the years ended March 31,

Death benefits

2014

OthersTotal¥45,108

Accidental benefits

775

674

̶

0

̶

̶

̶

674

Disability payments

2,490

2,539

̶

127

̶

̶

̶

2,666

Maturity benefits

19,593

21,930

̶

̶

̶

̶

̶

21,930

Others

6,021

6,850

̶

183

̶

̶

̶

7,034

Total

¥71,060¥75,711¥̶

¥1,702¥̶¥̶¥̶

¥77,413

3- 10 Annuity payments(Millions of yen)

2013

For the years ended March 31,

Total

Annuity payments¥9,571

2014

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥̶¥8,659¥11¥2,097

Asset-formation
insurance,
asset-formation
annuities¥̶

Others¥̶

Total¥10,768

Sony Financial Holdings Inc. Financial Data Book 2014 21

Sony Life Financial Data (Non-consolidated)

3- 11 Insurance benefits(Millions of yen)

2013

2014

Total

Individual life
insurance

Individual
annuities

Group life
insurance¥ 1,699¥ 2,131¥ 79¥̶Hospitalization benefits

8,745

8,992

̶

0

̶

Surgery benefits

8,258

8,604

̶

̶

̶

80

169

̶

0

̶

̶

̶

169

15,77523,070

̶

̶

̶

̶

̶

23,070For the years ended March 31,

Death benefits

Disability benefits
Living benefitsGroupannuities

Asset-formation
insurance,
asset-formation
annuities¥

Others

¥̶

̶

Total

¥̶

¥ 2,210

̶

̶

8,992

̶

̶

8,604

Others12,250

9,806

454

̶

2,201

̶

̶

12,462

Total¥46,809¥52,774¥533¥0¥2,201¥̶¥̶

¥55,510

3- 12 Surrender payments(Millions of yen)

2013

Total

Individual life
insurance

Individual
annuities

Group life
insuranceGroupannuities¥161,872¥170,178¥8,223¥̶¥̶For the years ended March 31,

Surrender payments

2014
Asset-formation
insurance,
asset-formation
annuities

Others

¥̶

Total

¥̶

¥178,402

3- 13 Depreciation and amortization(Millions of yen)

2013

For the years ended March 31,

Acquisition
cost

Tangible fixed assets¥ 4,637

Acquisition
cost

Balanceat the end
Ratio of
Depreciation Accumulated of the current depreciation
expensesdepreciation
period(%)

49.7%¥ 4,807

1,399

2,043

40.7

3,528

̶

̶

̶

̶

̶

20

0

0

19

1.7

1,194

72

905

289

75.7

1,259

86

955

304

75.8

37,262

3,911

11,16926,09230.0

38,095

4,799

14,23523,859

37.4

15

3

8

6

55.6

11

2

6

5

52.6

Other tangible fixed assets
Others¥41,915¥ 235 ¥ 2,304 ¥ 2,333

Ratio ofdepreciation
(%)

163

Leased assets

Total

Accumulated
depreciation

3,442

Buildings

Intangible fixed assets

Depreciation
expenses

2014
Balanceat the endof the current
period¥4,150 ¥13,482 ¥28,432

32.2%¥42,915¥ 262 ¥ 2,446 ¥ 2,361
176

1,490

2,037

¥5,064 ¥16,688 ¥26,226

50.9%
42.3

38.9%

3- 14 Operating expenses(Millions of yen)

For the years ended March 31,

2013

2014

Sales and marketing expenses¥ 53,837¥ 56,713

Sales administrative expenses

14,181

14,887

General administrative expenses
Total

41,041

42,267¥109,060¥113,868

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,

2013

2014

Life Insurance Policyholders Protection Corporation of Japan

¥840

¥846

22 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Financial Data (Non-consolidated)

4 Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)

For the years ended March 31,

2013

2014

¥80,045¥72,365

2,420

2,130

Income from monetary trusts, net

̶̶

Income from trading securities, net

̶

̶

2,420

773

Gains on derivatives, net

̶

172

Foreign exchange gains, net

̶

1,183

Other capital gains

̶

̶

3,351

949

̶

̶

Core profit(A)

Capital gains

Gains on sale of securities

Capital losses
Losses on monetary trusts, net
Losses on trading securities, net

̶

̶

1,587

528

Devaluation losses on securities

327

̶

Losses on derivatives, net

226̶

Foreign exchange losses, net

1,176

̶

34

420

Losses on sale of securities

Other capital losses
Net capital gains (losses)
Core profit plus net capital gains (losses)(B)(A) + (B)

Other one-time gains

(931)

1,180

79,11473,545̶̶

Gains from reinsurance̶̶

Reversal of contingency reserve̶̶

Reversal of specific reserve for possible loan losses̶̶

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

̶

̶

4,454

4,340

̶

̶

4,223

4,110

Provision for specific reserve for possible loan losses

21

6

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)

209

223

(4,454)(4,340)¥74,659¥69,205

Notes: 1. Core profit for the fiscal year ended March 31, 2013 (A) includes income gains of ¥5,259 million in income from monetary trusts; other capital losses
include impairment losses of ¥34 million from investment partnership; “Others” of other one-time losses includes provision of additional policy reserveof ¥209 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 total amount of provision for policy reserve and others of ¥227 million, subject to foreign exchange fluctuations for foreign currencydenominated products, and impairment losses of ¥193 million from investment partnerships; “Others” of other one-time losses includes provision
for additional policy reserve of ¥223 million.

Sony Financial Holdings Inc. Financial Data Book 2014 23

Sony Life Financial Data (Non-consolidated)(Reference) Reconciliation to core profit(Millions of yen)

For the years ended March 31,

Core Revenues

2013

2014

¥1,139,854¥1,194,979

925,874

960,986

924,472

959,660

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

1,402

1,325

192,154

204,881108,539

122,160

Gain on redemption of securities

̶2

Reversal of general reserve for possible loan losses

0̶

Other investment income

13

47

83,601

82,67016,566

23,799Gains on separate accounts, net
Other ordinary income
Income for annuity riders

2,087

2,151

Income for deferred payment of claims

11,861

17,197

Other ordinary income

2,618

4,451

Other core revenues

5,259

5,311

1,059,808

1,122,613

293,929

327,257

Insurance claims

71,06077,413

Annuity payments

9,571

10,768Insurance benefits

46,80955,510Surrender payments

161,872

178,402

Refund to policyholders

2,649

3,203

Reinsurance premiums

1,965

1,959

626,096646,203

Investment expenses

8,313

7,777

Interest expenses

43

48

Provision for general reserve for possible loan losses̶0

Depreciation of real estate for rent and others

2,115

2,077

Other investment expenses

6,153

5,652

Operating expenses

109,060

113,868

Other ordinary expenses

22,40827,507

Payments of deferred claims

7,078

10,884

Taxes

7,929

7,981

Depreciation and amortization

4,150

5,064

Provision for reserve for employees’ retirement benefits

3,141

3,532

Core Expenses
Insurance claims and other payments

Provision for policy reserves and others

Provision for reserve for directors’ retirement benefits
Others

3

̶

105

44

Other core expenses
Core Profit̶¥80,045

̶

¥72,365(Reference) Positive spread and yields(Billions of yen)

For the years ended March 31,

2013

2014

Positive spread

¥2.1

¥8.4

Investment yield for core profit

2.31%

2.35%

Investment yield (general account)

2.12%

2.20%

Average assumed interest rate

2.27%

2.18%

24 Sony Financial Holdings Inc. Financial Data Book 2014

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
Not applicable

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

2013
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains¥3,874,232¥4,425,970¥551,737¥551,737¥̶

Policy reserve matching bonds

̶

̶

̶

̶

̶

Stocks of subsidiaries and affiliated companies

̶

̶

̶

̶

̶

955,999

1,079,296

123,296

123,344

47

Japanese government and corporate bonds

925,308

1,036,956

111,648

111,648

̶Japanese stocks

14,76020,994

6,233

6,281

47

Foreign securities

14,454

18,681

4,226

4,226

̶

14,454

18,681

4,226

4,226

̶

Stocks, etc.

̶

̶

̶

̶

̶

Other securities

As of March 31,

Held-to-maturity securities

Available-for-sale securities

Bonds

Unrealized
losses

1,476

2,664

1,188

1,188

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Total

¥4,830,232¥5,505,267¥675,034¥675,082¥47

Japanese government and corporate bonds¥4,756,200¥5,410,686¥654,486¥654,486¥̶Japanese stocks

14,76020,994

6,233

6,281

47

Foreign securities

57,79570,922

13,126

13,126̶̶

Bonds

57,79570,922

13,126

13,126

Stocks, etc.

̶

̶

̶

̶

̶

Other securities

1,476

2,664

1,188

1,188

̶

Monetary claims purchased

̶

̶

̶

̶

̶

Certificates of deposit

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

Sony Financial Holdings Inc. Financial Data Book 2014 25

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

2014
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

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

¥ 73

̶

̶

̶

̶

̶

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

̶

̶

̶

̶

̶

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

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

¥ 22

Bonds

¥5,385,143¥5,913,448¥528,305¥528,327

Japanese stocks

12,236

21,205

8,968

8,972

3

Foreign securities

76,323

92,695

16,371

16,45584

76,323

92,695

16,371

16,45584

Bonds
Stocks, etc.

̶

̶

̶

̶

̶

Other securities

1,474

2,533

1,059

1,059

̶

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. The above table includes monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as ofMarch 31, 2014 amounted to ¥268,668 million and ¥37,253 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

2013

¥

2014

̶

¥

̶

Unlisted foreign bonds

̶̶

Others̶̶

Policy reserve matching bonds

̶̶

Stocks of subsidiaries and affiliated companies

12,607

16,000Available-for-sale securities

20,372

17,289Unlisted domestic stocks (except OTC stocks)

4̶

Unlisted foreign stocks (except OTC stocks)

948

823

Unlisted foreign bonds
OthersTotal

26 Sony Financial Holdings Inc. Financial Data Book 2014̶

̶19,41916,466¥32,980¥33,289

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)2013

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¥3,874,232¥4,425,970¥551,737¥551,737

¥

̶

̶

̶

̶

̶

12,607976,372
925,308
14,765
15,403
14,454948
20,895

12,607
1,103,708
1,036,956
20,99820,083
18,681
1,401
25,669̶̶̶

127,335
111,648
6,233
4,679
4,226
452
4,774

128,555
111,648
6,281
4,679
4,226
452
5,946

1,219

1,171

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥4,863,212¥4,756,200
24,872
61,244
57,795
3,448
20,895¥5,542,285¥5,410,686
31,10674,82370,922
3,901
25,669¥679,073¥654,486
6,233
13,57813,126452
4,774¥680,292¥654,486
6,281
13,57813,126452
5,946¥1,219
¥ ̶
47

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

47
̶
̶
̶

̶
̶
̶

1,171

(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

Sony Financial Holdings Inc. Financial Data Book 2014 27

Sony Life Financial Data (Non-consolidated)

5- 02 Fair value information on monetary trusts (general account)(Millions of yen)2013
As of March 31,

Monetary trusts

Balance sheet
amount¥306,122

Fair value

Net unrealized
gains (losses)

Unrealized gains¥̶¥̶¥306,122

Unrealized losses¥̶(Millions of yen)2014
As of March 31,

Monetary trusts

Balance sheet
amount¥305,346

Fair value

Net unrealized
gains (losses)

Unrealized gains

Unrealized losses

¥̶

¥̶

¥̶

¥305,346

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)2013
As of March 31,

Monetary trusts for held-to-maturity
Monetary trusts for policy reserve matching
Other monetary trusts

Carrying amount¥̶̶

267,865

Fair value¥̶̶Net unrealized
gains (losses)

Unrealized gains¥¥

306,071̶̶38,206

Unrealized losses

¥̶

̶
̶

̶
̶

38,206(Millions of yen)2014
As of March 31,

Monetary trusts for held-to-maturity
Monetary trusts for policy reserve matching
Other monetary trusts

Carrying amount¥̶̶

268,042Fair value¥̶̶

305,296

Net unrealized
gains (losses)

Unrealized gains

¥

¥

̶
̶

37,253

Unrealized losses̶̶

37,253¥̶̶̶

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)
Qualitative Information
1. Transaction details: The main derivative transactions used by Sony Life are as follows:
Currency derivatives: Forward foreign exchange transactions
2. Transaction policy: Sony Life’s policy is to conduct derivative transactions for the purpose of reducing the risk associated with the held
assets and liabilities. Sony Life does not engage in speculative derivatives trading.
3. Purpose of use: Sony Life uses derivatives for the purpose of reducing the risk associated with the held assets and liabilities. Sony Life
does not apply hedge accounting to derivatives.
4. Risk details: The derivative transactions used by Sony Life are subject to the risk of fluctuations in market prices. However, given thatSony Life uses derivatives mainly to reduce the risk associated with the held assets and liabilities, the sum of the risk associated with
derivative transactions and the underlying risk of assets and liabilities is limited.
The act of trading in derivatives is intrinsically subject to credit risk. However, Sony Life selects counterparties who are highly unlikely todefault on agreements related to these transactions.
5. 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 the division in charge of investment, the administrative division receives reports directly from the transaction
counterparty. This system enables the administrative division and the investment division to independently determine derivative positions
and transaction profits and losses. In addition, the management of risks related to derivative transactions is conducted strictly by thedepartment in charge of supervision. Also, the risk management division regularly reports the overall risk status to the Company’s Boardof Directors and Executive Committee.
6. Supplemental information regarding quantitative information: Forward foreign exchange transactions are undertaken for the purpose of
reducing the risk of foreign exchange movements associated with foreign currency-denominated receivables and payables, etc. The
underlying assets held and gains and losses on derivatives are recognized on a cumulative basis. Sony Life has confirmed that derivativetransactions have the effect of offsetting foreign exchange movements to a certain extent.

28 Sony Financial Holdings Inc. Financial Data Book 2014

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)2013
As of March 31,

2014

Interest
rate
Currency
EquityBondderivatives derivatives derivatives derivatives

Derivatives to which hedge
accounting is applied
Derivatives to which hedge
accounting is not applied
Total

¥̶

¥ ̶

¥̶

̶

(172)
¥(172)

̶¥̶¥̶Others¥̶Interest
rate
Currency
EquityBondderivatives derivatives derivatives derivatives

Total

¥̶

¥̶

Others

¥̶

Total

¥̶

¥ ̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

̶

̶

̶

¥̶

(172)
¥(172)

̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

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

2. Interest rate derivatives
Not applicable
3. Currency derivatives(Millions of yen)2013

As of March 31,

Notional
amounttotal

Notional
amountover 1 year

¥1,2061,206¥̶Over-the-counter transactions
Forward foreign exchanges
Sold
U.S. dollars
Total

2014

Fair value¥(172)(172)

̶

Valuation
gains(losses)

Notional
amounttotal

Notional
amountover 1 year

Fair value

Valuation
gains(losses)¥(172)(172)¥(172)

¥̶

¥̶

¥̶

¥̶

̶

̶

̶

̶

¥̶

Note: The forward rate of exchange is used to value forward foreign exchange transactions at the end of the fiscal year.

4. Equity derivatives
Not applicable
5. Bond derivatives
Not applicable
6. Others
Not applicable<Reference> Holdings of securitized papers and other sub-prime related investments
2013
As of March 31,

SPEs
CDO
Other sub-prime or Alt-A exposure
CMBSs
Leveraged finance
RMBS
Credit link note/loan(Billions of yen)

2014

Fair Value

As of March
31, 2012

Unrealized
gains(losses)

Realized
gains(losses)

Fair Value

As of March
31, 2013

Unrealized
gains(losses)

Realized
gains(losses)

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

̶
̶
̶
̶
̶
̶

Notes: Other than the investments in the above table, Sony Life held:
1. As of March 31, 2013, principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair value of ¥52.2 billion and unrealized gain of ¥8.8
billion as of March 31, 2013).
2. As of March 31, 2014, principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair value of ¥56.0 billion and unrealized gain of ¥12.2
billion as of March 31, 2014).

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)2013
As of March 31,

Trading-purpose securities

2014

Balance sheet amount

Net valuation gains (losses)
recorded in income

Balance sheet amount

Net valuation gains (losses)
recorded in income¥527,787¥70,801¥620,666¥50,776

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

Sony Financial Holdings Inc. Financial Data Book 2014 29

Sony Life Financial Data (Non-consolidated)

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

2013
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains¥3,874,232¥4,425,970¥551,737¥551,737

¥̶

̶
̶

̶
̶

̶
̶

̶
̶

̶
̶

955,999925,308
14,76014,454
14,454

1,079,296
1,036,956
20,994
18,681
18,681

123,296
111,648
6,233
4,226
4,226

123,344
111,648
6,281
4,226
4,226

47

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

̶

̶

̶

̶

1,476

2,664

1,188

1,188

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

¥4,830,232¥4,756,200
14,76057,79557,795¥5,505,267¥5,410,686
20,99470,92270,922¥675,034¥654,486
6,233
13,126
13,126¥675,082¥654,486
6,281
13,126
13,126

̶

̶

̶

̶

1,476

2,664

1,188

1,188

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

Unrealized
losses

̶

47
̶
̶
̶
̶
̶
̶
̶

¥47
¥̶
47
̶
̶
̶
̶
̶
̶
̶
(Millions of yen)

2014
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥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

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

̶

̶

̶

̶

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

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

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. The above table includes monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as ofMarch 31, 2014 amounted to ¥268,668 million and ¥37,253 million, respectively.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

30 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Financial Data (Non-consolidated)

O Held-to-maturity securities(Millions of yen)2013
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

2014

Balance sheet
amountDifference

Balance sheet
amountFair value

Fair value

Difference¥3,874,232
3,830,891
43,341¥4,425,970
4,373,729
52,240¥551,737
542,837
8,899¥4,404,321
4,349,230
55,090¥4,834,716
4,766,691
68,024¥430,394
417,460
12,933

̶

̶

̶

̶

̶

̶

̶

̶

̶

5,341

5,267

(73)

̶

̶

̶

̶

̶

̶

̶

̶

̶

5,341

5,267

(73)

̶

̶

̶

̶

̶

̶

O Policy reserve matching bonds̶Not applicable
O Available-for-sale securities(Millions of yen)2013
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
Others2014

Carrying
amountBalance sheet
amountDifference

Carrying
amountBalance sheet
amountDifference¥952,101
925,308
10,862
14,454
1,476¥1,075,445
1,036,956
17,143
18,681
2,664¥123,344
111,648
6,281
4,226
1,188

¥1,017,996
989,552
12,041
14,9281,474¥1,142,416
1,100,419
21,01318,4502,533¥124,420
110,866
8,972
3,521
1,059

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

3,898

3,850

(47)

̶

̶

̶

3,898

3,850

(47)

̶

̶

̶

47,51846,360195
962

47,482
46,338
191
952

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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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
Others
Total

2013

¥

̶

2014

¥

̶

̶

̶

̶

̶

̶

̶

12,607
20,372
4948

16,00017,289
̶

823

̶

̶

19,419¥32,980

16,466¥33,289

Sony Financial Holdings Inc. Financial Data Book 2014 31

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)

2013
Carrying
amountFair value

Net unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥3,874,232¥4,425,970¥551,737¥551,737

¥

̶

̶

̶

̶

̶

12,607976,372
925,308
14,765
15,403
14,454948
20,895

12,607
1,103,708
1,036,956
20,99820,083
18,681
1,401
25,669̶̶̶

127,335
111,648
6,233
4,679
4,226
452
4,774

128,555
111,648
6,281
4,679
4,226
452
5,946

1,219

1,171

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥4,863,212¥4,756,200
24,872
61,244
57,795
3,448
20,895¥5,542,285¥5,410,686
31,10674,82370,922
3,901
25,669¥679,073¥654,486
6,233
13,57813,126452
4,774¥680,292¥654,486
6,281
13,57813,126452
5,946¥1,219
¥ ̶
47

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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

̶

̶

47
̶
̶
̶

̶
̶
̶

1,171

(Millions of yen)

2014
Carrying
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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

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
Others32 Sony Financial Holdings Inc. Financial Data Book 2014

̶

446

̶

446

Sony Life Financial Data (Non-consolidated)

6- 02 Fair value information on monetary trusts (company total)(Millions of yen)2013
As of March 31,

Balancesheet amount

Monetary trusts¥306,122 ¥306,122

Fair value

2014

Net
unrealized
gains (losses)

Unrealized
gains

¥̶

¥̶

Fair valueNet
unrealized
gains (losses)

Unrealized
gains

Unrealized
losses¥̶ ¥305,346 ¥305,346

¥̶

¥̶

¥̶

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(Millions of yen)2013
As of March 31,

Carrying
amountFair value

Monetary trusts for
held-to-maturity¥¥

Monetary trusts
for policy reserve
matching
Other monetarytrusts

̶

̶

2014

Net
unrealized
gains (losses)¥̶

Unrealized
gains

¥

Unrealized
lossesCarrying
amountFair value

̶

¥̶ ¥

̶ ¥

̶

Net
unrealized
gains (losses)¥̶

Unrealized
gains

¥

Unrealized
losses

̶

¥̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

267,865

306,071

38,20638,206

̶

268,042

305,296

37,25337,253̶

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:
Currency derivatives: Forward foreign exchange transactions
2. Transaction policy: Sony Life’s policy is to conduct derivative transactions for the purpose of reducing the risk associated with the held
assets and liabilities. Sony Life does not engage in speculative derivatives trading.
3. Purpose of use: Sony Life uses derivatives for the purpose of reducing the risk associated with the held assets and liabilities. Sony Life
does not apply hedge accounting to derivatives.
4. Risk details: The derivative transactions used by Sony Life are subject to the risk of fluctuations in market prices. However, given thatSony Life uses derivatives mainly to reduce the risk associated with the held assets and liabilities, the sum of the risk associated with
derivative transactions and the underlying risk of assets and liabilities is limited.
The act of trading in derivatives is intrinsically subject to credit risk. However, Sony Life selects counterparties who are highly unlikely todefault on agreements related to these transactions.
5. 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 the division in charge of investment, the administrative division receives reports directly from the transaction counterparty. This system enables the administrative division and the investment division to independently determine derivative positions andtransaction profits and losses. In addition, the management of risks related to derivative transactions is conducted strictly by the department in charge of supervision. Also, the risk management division regularly reports the overall risk status to the Company’s Board of
Directors and Executive Committee.
6. Supplemental information regarding quantitative information: Forward foreign exchange transactions are undertaken for the purpose of
reducing the risk of foreign exchange movements associated with foreign currency-denominated receivables and payables, etc. The
underlying assets held and gains and losses on derivatives are recognized on a cumulative basis. Sony Life has confirmed that derivativetransactions have the effect of offsetting foreign exchange movements to a certain extent.

Sony Financial Holdings Inc. Financial Data Book 2014 33

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)

2013

2014

Interestrate
derivatives

Currency
derivatives

Equityderivatives

Bond
derivatives

OthersOthers

Total

Derivatives to which
hedge accounting
is applied

¥̶

¥ ̶

¥̶

¥̶

¥̶

¥ ̶

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

Derivatives to which
hedge accounting
is not applied

̶

(172)

̶

̶

̶

(172)

̶

̶

̶

̶

̶

̶

Total

¥̶

¥(172)¥̶¥̶¥̶¥(172)

¥̶

¥̶

¥̶

¥̶

¥̶

¥̶

As of March 31,

Interest
rate
Currency
EquityBondderivatives derivatives derivatives derivatives

Total

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
Not applicable
Currency derivatives(Millions of yen)2013

As of March 31,

2014

Fair value

Valuation
gains(losses)

Notional
amounttotal

Notional
amountover 1 year

Fair value

Valuation
gains(losses)¥̶¥(172)¥(172)

¥̶

¥̶

¥̶

¥̶

̶

(172)

(172)

̶

̶

̶

̶

Notional
amounttotal

Notional
amountover 1 year

¥1,206
1,206

Over-the-counter transactions
Forward foreign exchanges
Sold
U.S. dollars
Total¥(172)

Note: The forward rate of exchange is used to value forward foreign exchange transactions at the end of the fiscal year.

Equity derivatives
Not applicable
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

34 Sony Financial Holdings Inc. Financial Data Book 2014¥̶Sony Life

Performance Indicators (Non-consolidated)
1 Key Performance Indicators for Past Five Years(Millions of yen)

For the years ended March 31,

Policy amount in force
Individual life insurance

2010

2011

2012

2013

2014

¥34,598,244¥35,947,326¥37,345,780¥39,124,675¥40,500,241

33,164,100

34,421,831

35,707,301

37,366,333

38,628,089

Individual annuities

306,661

326,699369,759

412,709466,915

Group life insurance

1,127,481

1,198,794

1,268,718

1,345,632

1,405,237

Policy amount in force for group annuities

72,34858,93757,81156,50355,196

Annualized premiums from insurance in force

573,331604,793

635,401

669,937

696,986

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

133,023

140,776

148,954

158,686

167,075

New policy amount

4,056,495

4,213,996

4,207,045

4,460,210

3,894,484

4,017,527

4,166,278

4,145,663

4,396,676

3,814,291

Individual annuities

31,70932,746

57,66457,93175,088Group life insurance

7,258

14,971

3,717

5,602

5,104

68,78071,23070,85473,263

63,992

16,264

16,67917,101

18,397

13,486

Individual life insurance

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

881,798

900,091

967,400

1,142,274

1,197,109

Of which, income from insurance
premiums

700,101

770,330

816,106

925,874

960,986

Of which, investment income

175,397

119,500

133,945

199,833

212,323

801,698

826,914897,964

1,067,614

1,127,904

Of which, insurance claims andother payments

274,278

297,966

287,431

293,929

327,257

Of which, investment expenses

20,584

19,303

14,37011,686

8,506

Of which, operating expenses

96,86099,374105,492

109,060

113,868

Ordinary profit

80,09973,17669,43674,65969,205

Net income

46,13840,22031,42642,44437,063

Core profit

64,51756,29571,68580,04572,365

Common stock

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

Number of shares issued and outstanding(thousands of shares)

70,00070,00070,00070,00070,0004,286,540

4,723,332

5,222,846

5,952,750

6,624,903

373,604

398,124444,289

550,624

640,562

3,985,610

4,371,484

4,843,020

5,472,930

6,123,633

127,599

134,419

138,909145,104

154,219

Securities

3,539,114

4,017,583

4,545,019

5,211,535

5,954,716

Solvency margin ratio

2,637.3%

2,900.1%[1,720.0%]

1,980.4%

2,281.8%

2,358.7%

Number of employees

5,835

5,921

6,060

6,323

6,553

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 figures for the years ended March 31, 2010 and 2011 and the figures for the years ended March 31, 2012 to 2014 are calculated basedon 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 asof 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 2014 35

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)2013
As of March 31,

Individual life
insurance
Individual annuities
Group life insuranceGroup annuities

NumberChange fromMarch 31,2012 (%)

5,958,963
82,261
̶̶

106.4%
115.0
̶
̶

2014
Change fromMarch 31,2012 (%)

Amount¥37,366,333
412,709
1,345,632
56,503

Change fromMarch 31,2013 (%)

Number

104.6%
111.6
106.1
97.7

6,236,000
94,413104.6%
114.8

̶
̶

̶
̶

Change fromMarch 31,2013 (%)

Amount¥38,628,089
466,915
1,405,237
55,196103.4%
113.1
104.4
97.7

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)

2013

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

YoYchange(%)

Number

607,184
13,343̶̶

Amount105.1%98.5
̶̶

¥4,396,676
57,931
5,602

Amount,of which,increase fromconversion

YoYchange(%)

Amount,of which,
new policies

106.1%
100.5
150.7¥4,396,676
57,931
5,602

̶

̶

¥̶
̶
̶
̶

̶

(Millions of yen)

2014

For the year ended March 31,

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

YoYchange(%)

Number

517,946
15,719̶̶YoYchange(%)

Amount

85.3%
117.8
̶
̶

¥3,814,291
75,088
5,104

86.8%
129.6
91.1

̶

Amount,of which,increase fromconversion

Amount,of which,
new policies¥3,814,291
75,088
5,104

̶

¥̶
̶
̶
̶

̶

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)2013
As of March 31,

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

Amount2014

Change fromMarch 31, 2012 (%)

Change fromMarch 31, 2013 (%)

Amount¥654,723
15,214¥669,937

105.3%
110.6
105.4%¥680,005
16,980¥696,986

103.9%
111.6
104.0%

158,686106.5

167,075

105.3

New policies(Millions of yen)

2013
For the years ended March 31,

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

Amount2014

YoY change (%)

AmountYoY change (%)¥71,069
2,193¥73,263103.5%
99.6
103.4%¥61,269
2,723¥63,992

86.2%
124.1
87.3%

18,397

107.6

13,48673.3

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.).

36 Sony Financial Holdings Inc. Financial Data Book 2014

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)2013
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)
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
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

2014
Amount

4,569,665
577,454

Number¥34,556,341
3,039,828

Amount̶̶1,073,206[̶]5,958,963

1,694,524
37,366,333

4,743,523
610,296
18,49415,090332,430
1,245
564,387
4,317
511,682
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
67,867
1,114,202
13,317
1,100,885[̶]
6,236,000

47,25927,566
7,436
82,261

210,974
146,358
55,375
412,70955,94130,281
8,191
94,413

247,101
160,834
58,979466,915

119,023
127,330
1,881,666
57
2,128,076

240,853
74,381
1,030,367
29
1,345,632

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

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

25,944
165,990
191,934

4,071
52,43156,50325,437
159,268
184,705

3,872
51,32455,196

̶
̶

̶
̶

̶
̶

̶
̶

̶

̶

15,557
326,084
1,274
561,924
4,537
453,085
1,398
203,903
3,599
90,312
66,044
48,994
19,17527,92953,979106
29,897
3,614
38,192
14,538
121,8828,758
219,666
56,00933,387
1,575,595
12,70865[514,361]
316,092
43,327

147,918
2,714,103
11,8233,189,482
8,221
1,542,262
45,0785,376,396
57,892
1,881,168
1,246,725
435,942
782,864
657,075
1,629,338
8,159
1,328,486
124,883
698,601
10,914
461,963
1,625
30,277
5,264

̶
̶

̶
̶

202,663
70,102
1,073,206

809,770
182,868
1,694,524

̶694,977
5,301
1,329
8,418,435
1,115,467
122,828

̶

¥35,556,338
3,188,877
165,529
140,607
2,711,866
11,522
3,179,370
7,738
1,763,371
44,3055,764,089
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
29,2515,713
̶

675,752
5,025
1,221
8,345,638
1,315,664
137,093
8,058
9,485
983,264
177,764
1,756,085
15,6801,740,405
̶

38,628,089

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 2014 37

Sony Life Performance Indicators (Non-consolidated)

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

2013
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)
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
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

2014
Amount471,677
42,542

Number¥4,118,758
175,568

̶

̶

85
4

1,580
22

Amount369,707
48,54918,725
1
13,610¥3,424,239
213,026
164,923
10
70,372̶̶̶̶

71,004351
97,26672
34,840420,177484
382,026
2,266
1,065,331

21,388314
71,72228
28,617

121,846463
273,274
1,547
868,575

̶

̶

̶

̶

4,020
9,275
12,238995

97,588233,433
125,21355,416

4,107
7,430
13,035919

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

̶
̶
̶

̶
̶
̶

̶
̶
̶

̶
̶
̶

6,758
582
8,245
3,928
42,5093,642
3,241
11,5052,250
116,325

301,579
19,985
151,982
3,164
157,066
698
274
962

373,702
6,658
147,705
3,067
48,199928
365
761

27,937

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

̶
̶

̶
̶

̶
̶

̶
̶

[56,941]
33,8192,993

895,997
114,312
8,424

̶
̶

̶
̶

18,516
12,310101,688

78,96426,923
163,604

652,550
304,877
23,461
7,954
9,417
254,597
9,446
85,174
15,693
69,481
3,814,291
45,78029,308̶̶̶

101,688[̶]607,184

163,604
4,396,676[36,234]
91,693
8,095
1,870
2,272
76,511
2,945
56,546
13,32643,220[̶]
517,946

11,816
1,527

49,516
8,414

10,4865,233

̶̶

19,756

̶

̶

̶

̶

̶

13,34357,931

15,71975,088

9,903
2,822

1,796
3,805

828
14,997

6
5,098

̶
̶

̶
̶

̶
̶

̶
̶

12,725

5,602

15,825

5,104

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

̶
̶
̶
̶
̶

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.

38 Sony Financial Holdings Inc. Financial Data Book 2014

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

2013

2014

¥35,671,808[97,350]
1,345,602¥36,872,003[108,424]
1,405,218

̶̶

37,017,411

38,277,222[7,054,856][6,815,689]

̶̶[1,779]

[730]

̶

̶

[7,056,635][6,816,420][1,413,006][1,345,860]

̶
̶
̶

̶
̶
̶

[1,413,006][1,345,860]

1,694,524
357,730

1,756,085
408,466̶̶̶̶

2,052,255

2,164,552

̶̶

[49,550][9][55,275][7]

̶̶

[49,559][55,282]̶̶

54,97829
56,503
111,51158,44818
55,196113,664[18,031][18,095]

̶

̶

[15]

[12]

̶

̶

[18,047][18,108][18,031][18,095]

̶
̶
̶

̶
̶
̶

[18,031][18,095][7,611][7,419]

̶
̶
̶

̶
̶
̶

[7,611][7,419]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 2014 39

Sony Life Performance Indicators (Non-consolidated)

2- 05 Number of policies in force by insurance function(Number)

As of March 31,

2013

2014

Disability protection
Individual life insurance

501,082

496,356

Individual annuities̶̶Group life insurance

74,39449,321

̶̶

575,476545,677

1,670,518

1,677,071

Individual annuities̶̶Group life insurance̶̶Group annuities̶̶

1,670,518

1,677,071

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,

2013

2014

Pure death-protection insurance
Whole life insurance
Whole life insurance with term rider¥ 7,613,811¥ 7,980,007

̶̶Term life insurance

14,169,640

14,722,876

Total

34,556,341

35,556,338

Mixed insurance
992,639

1,169,086

Endowment insurance with term rider̶̶Term life insurance with living benefits̶̶Endowment insurance

Total

1,115,467

1,315,664

1,694,524

1,756,085

412,709466,915

Rider to cover accidental death

3,632,540

3,484,766

Injury rider

3,422,316

3,330,923

Comprehensive protection riders covering hospitalization

513

489

Comprehensive protection riders covering hospitalization for family

23

21

Comprehensive protection riders covering lifestyle-related disease

55

52

Medical treatment rider for adults

1,340

1,295

Medical treatment rider for women

Pure endowment insurance
Annuity products
Individual annuities
Riders for disaster and disease

1,303

1,281

Lifestyle diseases medical treatment rider

17

16

New medical treatment rider for women

5

4

241

241

6,376

6,514

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.

40 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)

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

2013

2014

For the years ended March 31,

NumberAmountNumberAmountBalance at the beginning of the fiscal year

5,602,189¥35,707,301

5,958,963¥37,366,333

New policy amount

607,184

4,396,676

517,946

3,814,291

Increase from renewal

15,44953,97815,01355,283

Increase from reinstatement

19,216

111,453

19,558111,830

Increase in policy amount

[196]

1,639

[248]

2,523

Increase from conversion

̶

̶

̶

̶

Increase for other reasons

6,084

62,621

13,612

191,967

Decrease from death

8,945

56,515

9,719

60,056

Decrease for maturity

29,089107,644

30,587

114,426

Decrease in policy amount[41,135]

197,491[37,478]

171,793

Decrease from conversion

̶

̶

̶

̶

202,965

1,652,869

193,104

1,495,343
224,789

Surrender amount
Lapse amount

39,002

243,673

37,362

Decrease for other reasons

11,158709,142

18,320847,729

5,958,963

37,366,333

6,236,000

38,628,089[6.4%][4.6%][4.6%][3.4%]Net increase

356,774

1,659,032

277,037

1,261,755[Increase ratio (%)]

[12.0%][29.1%][(22.3%)][(23.9%)]Balance at the end of the fiscal year
[Increase ratio (%)]

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

Individual annuities(Millions of yen)

2013
For the years ended March 31,

Number

2014
AmountNumberAmountBalance at the beginning of the fiscal year

71,560¥369,759

82,261¥412,709

New policy amount

13,34357,931

15,71975,088

134

657

141

632

Increase from reinstatement
Increase from conversion

̶

̶

̶

̶

Increase for other reasons

1,179

4,332

1,311

4,019

40

188

61

317

Decrease from death
Decrease for maturity

248

157

528

325

Decrease in annuity amount

[208]

1,211

[401]

1,858

Decrease from conversion
Surrender amount

̶

̶

̶

̶

2,739

14,011

3,416

18,231
1,122

Lapse amount

281

1,381

245

Decrease for other reasons

647

3,020

769

3,679

Balance at the end of the fiscal year

82,261

412,709

94,413466,915[Increase ratio (%)]

[15.0%][11.6%][14.8%][13.1%]Net increase

10,701

42,94912,152

54,205[Increase ratio (%)][(3.8%)][(0.3%)][13.6%][26.2%]

Notes: 1. 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.
2. “Decrease for maturity” is presented separately in this data book.

Sony Financial Holdings Inc. Financial Data Book 2014 41

Sony Life Performance Indicators (Non-consolidated)

Group life insurance(Millions of yen)

2013

2014

For the years ended March 31,

NumberAmountNumberAmountBalance at the beginning of the fiscal year
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 fiscal year
[Increase ratio (%)]
Net increase[Increase ratio (%)]

2,300,322
12,725
246,49359
92,916[1,826]173
10,543
258,782
254,015[424,221]
997
89
186
2,128,076[(7.5%)](172,246)[̶]¥1,268,718
5,602
320,024226
211,370
787
58
1,388
335,333
65,59157,450994
338
60
1,345,632[6.1%]
76,913[10.0%]

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

̶̶

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%)]

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)

2013

2014

For the years ended March 31,

NumberAmountNumberAmountBalance at the beginning of the fiscal year
New policy amount
Annuity payment
Lump-sum payment
Surrender amount
Balance at the end of the fiscal year
[Increase ratio (%)]
Net increase[Increase ratio (%)]

181,316¥57,811

191,934¥56,503

̶

̶

̶

̶

246,949
9,483

2,038
2,457

244,140
8,398

2,097
2,201

̶

̶

̶

̶

191,934[5.9%]
10,618[̶]56,503[(2.3%)](1,308)[̶]

184,705[(3.8%)](7,229)[̶]55,196[(2.3%)](1,306)[̶]Notes: 1. The amounts at the beginning and end of the fiscal year 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

2013

2014

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, 2014.
<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

42 Sony Financial Holdings Inc. Financial Data Book 2014

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

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%
1.50
1.50
1.50
1.50
1.50
1.50
1.50

1 year
2
3
4
5
6
7
8

Ongoing policy
¥ ̶
̶
̶
̶

Policies to which nursing care applies,
ending at death of policyholder¥7,533
0
0
0
3,220
0
0
0

3,220
̶
̶
̶

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, 2014.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount (policy reserve × dividend participation ratio) and interest throughNovember 2, 2014 (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, 2014.
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,

2013

2014

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

4.6%
11.6
6.1
(2.3)

3.4%
13.1
4.4
(2.3)

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

For the years ended March 31,

2013

2014

Average policy amount for new policies
Average policy amount for policies in force¥7,241
6,270¥7,364
6,194

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,

2013

2014

Individual life insurance
Individual annuities
Group life insurance

12.3%
18.2
0.4

10.2%
21.0
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,

2013

2014

Individual life insurance
Individual annuities
SubtotalGroup life insurance

5.55%
5.00
5.54
4.55

4.76%
5.75
4.77
4.90

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,

2013

2014

Individual life insurance + Individual annuities

5.31%

4.61%

(%)

Sony Financial Holdings Inc. Financial Data Book 2014 43

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,

2013

2014

Average premiums for new policies¥11,031¥11,311For the years ended March 31,

2013

2014

Based on number of policies
Based on policy amount

1.55‰
1.55

1.59‰
1.58

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

3- 06 Mortality rate (individual life insurance: primary coverage)( ‰)3- 07 Incidence rates of riders (individual life insurance)

( ‰)

2013
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

0.094‰
0.075
3.576
35.236
13.58040.561
8.458

2014
Policy amount0.110‰
0.028
83.789573.425
379.866

Number ofpolicies

0.095‰
0.126
3.543
36.15714.16640.357
9.465

Policy amount

0.101‰
0.041
86.717588.196399.877

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

For the years ended March 31,

2013

2014

Operating expense ratio

11.8%

11.9%

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, 2014(1) Investment Environment
During the fiscal year ended March 31, 2014, the Japanese economy continued to grow. In the first half, public investment as well as
exports showed sizable growth thanks to the government’s economic stimulus package and the still depreciating yen. In addition, private
consumption was solid thanks to the improvement in consumer confidence supported by the buoyant stock market. In the second half,
there was a last-minute surge in demand in view of the coming consumption tax hike from April 2014, resulting in substantial increases inthe sales of durable goods and private housing investment. While the real GDP growth rate temporarily stalled at one stage due to a deceleration of the growth momentum in public investment and exports, which have been driving the economy, it proved to be generally solid
throughout the fiscal year.
The real GDP growth rate, year on year, was 2.9% for the April–June quarter of last year, 1.3% for the July–September quarter, 0.3% for
the October–December quarter, and 6.7% in the January–March quarter.
The Japanese bond market remained under the strong influence of the quantitative and qualitative monetary easing policy of the Bank ofJapan (BoJ) implemented in April last year. As the BoJ announced that it would double in two years the monetary base, as well as its holding of long-term Japanese government bonds (JGBs) and exchange traded funds (ETFs), while more than doubling the period of the average remaining maturity of its long-term JGBs, concern grew over the potential decline of market liquidity immediately after the introductionof this new BoJ policy, triggering temporary interest rate volatility. On the other hand, since the BoJ announced “it would aim to realize thetwo percent consumer price stability target, and continue its quantitative and qualitative monetary easing until such time the Japanese
economy can maintain a two percent inflation rate over the long term,” the interest rate rise in the short and mid-term maturity sector
turned out to be limited thanks to the time axis effect, which in turn spread to the long-term maturity sector, slightly reducing interest rate
volatility in the bond market. As the market settled down in the period up to the fiscal year-end, the interest rate was on a gradual decline
trend. The yield on 10-year JGBs, which is the bellwether for the long-term interest rate, went down to 0.325% at one point in April 2013,
then soared up to 0.996% at one point in May 2013, before it declined to 0.642% (up 0.082 of a percentage point year on year) at the endof March 2014.
The Japanese stock markets soared. The Nikkei Stock Average went up from ¥12,397.91 at the end of March 2013 to ¥15,942.60 in the
middle of May 2013, encouraged by the quantitative and qualitative monetary easing policy by the BoJ implemented in April last year, alongwith the government’s growth strategies. Then the index went down to a level below the ¥13,000 mark in a correction phase, discouraged
by tapering quantitative easing in the U.S. and concern over emerging economies, before a recovery trend gradually prevailed on the backof solid domestic corporate earnings. As of March 31, 2014, the Nikkei stood at ¥14,827.83, up ¥2,429.92 from its level a year earlier.
In foreign exchange markets, the yen further depreciated. The dollar to yen exchange rate soared from ¥94.22 against the U.S. dollar at
the end of March 2013, to ¥103.74 against the U.S. dollar at one point in May 2013, encouraged by the quantitative and qualitative monetary easing policy of the BoJ implemented in April last year. Then investors bought back yen in a risk-off market sentiment, discouraged bytapering quantitative easing in the U.S. and growing geopolitical tension, resulting in the yen appreciating against the U.S. dollar to around

44 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)the ¥94 level at one point, before soaring again beyond ¥100 through the period into the second half, encouraged by developments in the
U.S., including the economic recovery and the agreement between the ruling and opposition parties over the debt ceiling issues. This trendof a weak yen has generally prevailed to date, and the yen was trading at ¥103.23 against the U.S. dollar as of March 31, 2014, weakening¥8.97 against the U.S. dollar from a year earlier.
(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 the concept of 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 suchinsurance liabilities. On the other hand, it is our policy to invest within certain limits in riskier assets including stocks.
(3) Results of Investment
As of March 31, 2014, general account assets totaled ¥5,984.3 billion, up 10.8%, or ¥582.2 billion, from a year earlier. Within generalaccount assets, Japanese government and corporate bonds totaled ¥5,190.0 billion (accounting for 86.7% of total general accountassets), foreign bonds ¥79.8 billion (1.3%), Japanese stocks ¥33.2 billion (0.6%), monetary trusts ¥305.3 billion (5.1%), policy loans¥154.1 billion (2.6%), real estate ¥66.5 billion (1.1%) and cash and deposits and call loans ¥32.6 billion (0.5%).

Portfolio of general account assets
General account assets(Millions of yen)2013
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

Amount2014% of total¥ 103,321
̶̶̶̶

306,122
4,683,747
4,561,048
31,10687,42862,022
25,406
4,164
145,104
145,01985
70,301
13,72480,038(235)¥5,402,126
41,756

1.9%

Amount

¥

̶
̶
̶
̶

5.7
86.7
84.4
0.6
1.6
1.1
0.5
0.1
2.7
2.7
0.0
1.3
0.3
1.5
(0.0)
100.0%
0.8% of total

32,617̶̶̶̶

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

Changes in general account assets by categories

0.5%
̶
̶
̶
̶

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(Millions of yen)

For the years ended March 31,

2013

2014

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¥ 38,452¥ (70,704)

̶
̶
̶
̶

̶
̶
̶
̶

17,824569,218585,292(13,946)(2,733)
2,389(5,123)
606
6,195
6,236
(41)
(2,658)(13,261)
7,819(21)¥623,569(1,239)(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
16,438Sony Financial Holdings Inc. Financial Data Book 2014 45

Sony Life Performance Indicators (Non-consolidated)

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

For the years ended March 31,

2013

2014

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

0.06%

0.05%

̶

̶

̶

̶

̶

̶

̶

̶

1.96
2.09
2.09
5.98
0.93
3.86
0.71
5.13
2.12%

1.98
2.18
2.06
2.22
8.30
3.80
0.64
5.65
2.20%

Notes: 1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment income minus investment
expenses.
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

2013

¥

2014

57,825Interest 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

46 Sony Financial Holdings Inc. Financial Data Book 2014

54,814

̶

̶

̶

̶

̶

̶

̶

̶

268,616
4,319,240
4,199,159
30,637
86,275141,034
107
69,071¥4,926,539
86,281

268,6114,900,002
4,784,298
26,29786,600149,675314
64,367¥5,512,218
87,8254- 04 Investment income (general account)
For the years ended March 31,¥(Millions of yen)

2013

2014

¥108,539¥122,160

̶

̶

5,259

5,311

̶

̶

2,420

̶

773
2
172
1,183

̶

̶

13
¥116,232

47¥129,652

̶̶Sony Life Performance Indicators (Non-consolidated)

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

For the years ended March 31,

2013

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

¥

2014

43

¥

48

̶

̶

̶

̶

̶

̶

1,587
327

528

̶

̶

226
1,176
21

̶

̶

̶

2,115
6,188
¥11,686

2,077
5,845
¥8,506̶̶

6

4- 06 Interest income and dividends (general account)(Millions of yen)

For the years ended March 31,

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

2013

2014

0
92,167
87,634
536
3,746
5,450
10,854¥108,539¥
0
106,187
98,588
397
6,740
5,691
10,250¥122,160¥

4- 07 Gains on sale of securities (general account)(Millions of yen)

For the years ended March 31,

2013

2014

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

¥

¥

3
2,066
349
¥2,420

1
673
98
¥773

4- 08 Losses on sale of securities (general account)(Millions of yen)

For the years ended March 31,

2013

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

¥

2014

0
412
1,174
¥1,587

¥ ̶
487
41
¥528

4- 09 Devaluation losses on securities (general account)(Millions of yen)

For the years ended March 31,

Devaluation losses on Japanese bonds (including JGBs)
Devaluation losses on Japanese stocks, etc.
Devaluation losses on foreign securities
Total

2013

2014

¥ ̶
327

¥̶
̶

̶

̶

¥327

¥̶

Sony Financial Holdings Inc. Financial Data Book 2014 47

Sony Life Performance Indicators (Non-consolidated)

4- 10 Securities (general account)(Millions of yen)2013
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

2014

Amount% of total

Amount% of total¥4,527,332
3,490
30,224
27,10831,10687,42862,022
25,406
4,164¥4,683,747

96.7%
0.1
0.6
0.6
0.7
1.9
1.3
0.5
0.1
100.0%¥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%

4- 11 Balance of securities by remaining period (general account)(Millions of yen)2013

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

¥7,8403,631
2,472

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)¥37,071
23,197
1,018
8,373¥29,686
15,528¥9,392¥4,570,224
4,468,860

̶

̶

̶

̶

̶

637

̶

̶

¥4,683,747
4,527,332
3,490
30,224
31,10687,42862,022
25,406
4,164

̶

̶

̶

̶

̶

1,736

4,393

13,5204,338
9,182

13,401
12,024
1,376
13

21,213
31,106
46,38043,341
3,039
2,664

̶

Total

¥29,531
16,115

̶

̶

1,736
̶

4,393
89

̶

7,995
2,318
5,677
1,397

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥7,840¥37,071¥29,686¥9,392¥29,531¥4,570,224¥4,683,747(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
Due after
Due after
3 years through 5 years through 7 years through10 years
7 years
5 years¥16,389¥5,175,193
5,055,455

Total¥21,985
12,297¥29,574
15,285

̶

̶

̶

̶

̶

2,058

105

̶

1,639

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

̶

¥70,532
65,346

Due after
10 years(including nofixed maturity)

̶

̶

̶

̶

̶

2,007

7,629

16,38912,371
4,017

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

̶

̶

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

4- 12 Fiscal year-end yields on bonds (general account)(%)

As of March 31,

2013

2014

Japanese government and corporate bonds
Foreign bonds

2.11%
1.36

2.08%
3.70

48 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)

4- 13 Japanese stock holdings by industry (general account)(Millions of yen)2013
As of March 31,

AmountFisheries, 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

¥

̶

2014
Composition(%)

̶%

Amount¥̶Composition
(%)

̶%

124
1,388

0.4
4.5

̶

̶

1,838

5.5

326

1.1

554

1.7

̶

̶

̶

̶

̶

̶

̶

̶

444
645

1.4
2.1

750
736

2.3
2.2

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

270

0.9

357

1.1

̶

̶

̶

̶

1,114
3,416
2,544
131

3.6
11.0
8.2
0.4

3.5
12.5
6.9
0.7
0.3
1.9

̶

̶

631

2.0

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

807

2.6

1,062

3.2

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,786

5.7

3,041

9.2

1,038
4,613

3.3
14.8

277
1,482

0.8
4.5

̶

̶

̶

̶

̶

̶

̶

̶

10,107
363

32.5
1.2

12,000
846

36.1
2.6

̶

1,349
¥31,106̶

4.3
100.0%

̶

1,685¥33,205̶

5.1
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)

2013

2014

¥145,019
129,523
15,49585[̶]¥154,180
138,236
15,944
38
[̶]

̶

̶

[̶]

[̶]

̶

̶

̶

̶

̶

̶

̶

̶

85
¥145,10438¥154,219

Sony Financial Holdings Inc. Financial Data Book 2014 49

Sony Life Performance Indicators (Non-consolidated)

4- 15 Tangible fixed assets (general account)
Tangible fixed assets(Millions of yen)

2013
Balance at the
beginning of the
fiscal year

Increase in thecurrent period

Decrease in thecurrent periodLand¥31,469¥ 55

Buildings

41,491

401

¥ 434
[434]
526
[512]

207
̶

̶
̶

511

93

¥73,678¥549

69,942224

For the year ended March 31,

Leased assets
Construction in progress
Other tangible assets
Total
Of which, investment
and rental properties

Amount ofdepreciation in
the current period

Balance atthe end of thecurrent period¥̶¥31,089¥

2,153

39,212

20,734

34.6

̶
̶

21

185

141

43.3

̶

̶

̶

̶

4
[3]
¥ 965
[951]

117

482

1,487

75.5

¥2,293¥70,969¥22,363

35.9%

2,057

67,231

20,058

34.8

885
[877]

Amount ofaccumulated
depreciation

̶% ofaccumulated
depreciation̶%(Millions of yen)

2014
For the year ended March 31,

Balance at the
beginning of the
fiscal year

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

Increase in thecurrent period¥31,089
39,212

¥ ̶
464

185
̶

Amount of
Decrease in the depreciation incurrent period the current period

Balance atthe end of thecurrent period

Amount ofaccumulated
depreciation% ofaccumulated
depreciation

̶¥
21,972

37.6
1.7

¥ ̶
2,129

¥30,10336,429

20

¥ 986
1,118
[31]
171

14

19

0

̶

̶

̶

̶

̶

̶

482

216

140

548

1,524

73.6

¥70,969

¥700

10
[5]
¥2,285[36]¥2,284¥67,100¥23,497

38.8%

67,231346

2,021

63,334

21,050

37.8

2,223

̶%

Note: Figures in [ ] in the “Decrease in the current period” describe the amount of impairment losses.
(Millions of yen)

Balance of real estate and number of buildings for rent
As of March 31,

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

2013

2014

¥70,301
3,448
66,853
4¥66,532
3,442
63,0903

4- 16 Overseas investment (general account)(Millions of yen)

Details by assets
2013
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

Amount2014% of total¥18,681
1,401
21,67341,756
̶
̶
̶

21.0%
1.6
24.4
47.0
̶
̶
̶

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

33.6%
1.6
19.1
54.3
̶
̶
̶

̶

̶

̶

̶

47,16947,16953.0
53.0

49,05949,05945.7
45.7¥88,926

100.0%¥107,254

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 determined atsettlement with foreign exchange forward contracts.

50 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)

Overseas investment by region(Millions of yen)

2013
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¥18,757

21.5%¥10,967

17.7%¥ 7,790

30.7%

¥̶

̶%

Europe50,441

57.7

43,341

69.9

7,100

27.9

̶

̶

Oceania

7,714

8.8

7,714

12.4

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

10,51512.0

̶̶

10,51541.4

̶̶Middle East

̶

̶

̶

̶

̶

̶

̶

̶

Africa

̶

̶

̶

̶

̶

̶

̶

̶

International organizations

̶

̶

̶

̶

̶

̶

̶

̶

100.0%

¥̶

̶%

Asia
Latin America

Total¥87,428100.0%¥62,022100.0%¥25,406(Millions of yen)

2014

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

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

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

Asia
Latin America

12,40011.6

̶̶

12,40046.1̶̶Middle East

̶

̶

̶

̶

̶

̶

̶

̶

Africa

̶

̶

̶

̶

̶

̶

̶

̶

International organizations

̶

̶

̶

̶

̶

̶

̶

̶

100.0%

¥̶

̶%

Total

¥106,752

100.0%¥79,835

100.0%¥26,916

Foreign-currency-denominated assets by currency(Millions of yen)

2013

2014

As of March 31,

Amount% of total

Amount% of total

U.S. dollar¥27,360

65.5%¥45,301

77.8%

Euro

5,992

14.4

9,148

15.7

Australian dollar

7,782

18.6

3,270

5.6

British pound

617

1.5

469

0.8

Offshore renminbi

2

0.0

3

0.0

New Taiwanese dollar

1

0.0

1

Total

¥41,756

100.0%

0.0¥58,195

100.0%For the years ended March 31,

2013

2014

Yield on overseas investments

0.93%

8.19%

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 2014 51

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)

2013

2014

¥ 872,502
252,363
32,26459,561
0
114,602(2,012)¥ 954,157
274,027
41,556
63,671
0
118,354
75

̶

̶

464
70,604
372,561

174
78,868400,056̶̶(27,907)̶

(20,626)(2,000)76,472
21,871
8,307
29,054
11,474
27,592
1,966

80,90422,512
8,368
29,616
12,89630,023
2,068

2,281.8%

2,358.7%

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,

2013

2014

(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)¥6,503.4
5,952.7
551.7
(1.0)

¥7,056.2
6,624.9
430.3
1.0

̶

̶

̶

̶

5,106.5
5,610.4
32.2
59.5
373.0
372.5
0.4
39.0
1,396.8
551.7
845.1

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

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.

52 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)

6 Balance of Separate Account Assets(Millions of yen)

As of March 31,

2013

2014

Individual variable life insurance and individual variable annuities¥550,624¥640,562

̶̶¥550,624¥640,562

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)

2013

2014

As of March 31,

NumberAmountNumberAmountVariable life insurance (whole life type)577,454¥7,113,036

610,296¥7,302,062

Variable life insurance (limited term type)43,327

146,778

47,944

164,508

Variable life insurance (term type)

1,398

46,8101,352

45,807622,179¥7,306,626

659,592¥7,512,377

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

Individual variable annuities(Millions of yen)2013
As of March 31,

NumberIndividual variable annuities

27,6772014
Amount¥146,759

NumberAmount30,502¥161,758

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)2013
As of March 31,

Amount2014% of total

Amount% of total

Cash and deposits, call loans¥ 21,139

3.8%¥ 17,838

2.8%

Securities

527,78795.9

620,666

96.9

159,25628.9

168,661

26.3

Japanese government and corporate bonds
Japanese stocks

30,778

5.6

37,237

5.8

Foreign securities

188,01034.1

235,435

36.8

Bonds

44,775

8.1

51,863

8.1

Stocks, etc.

143,235

26.0

183,571

28.7

Other securities

28.0

149,741

27.2

179,332

Loans

̶

̶

̶

̶

Others

1,697

0.3

2,057

0.3

̶

̶

̶

̶

Reserve for possible loan losses
Total¥550,624

100.0%¥640,562

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 2014 53

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)

¥

2013

2014

9,147
8,033
15
103,039̶¥ 11,773
16,052
74
143,031
5,036

̶

̶

0
2,558
117
32,237
1,390

0
680
141
92,255̶̶̶

331¥ 83,601

221¥ 82,670

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)

2013

2014

As of March 31,

Balance sheet
amountNet valuation
gains (losses)
recordedin income

Trading-purpose securities¥527,787¥70,801

Balance sheet
amountNet valuation
gains (losses)
recordedin income¥620,666¥50,776

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,

2013

2014

Number of agencies

1,973

1,974

As of March 31,

2013

2014

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

1,694
[887]
[807]
4,629
[4,590]
[39]

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

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
4,216 as of March 31, 2014.

54 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life Performance Indicators (Non-consolidated)

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

2013

2014

Office employees

290

245

[Male][42][48][Female]

[248]

[197]

Sales employees

388

444

[Male]

[380]

[422]

[Female]

[8]

[22]

9- 03 Average age and years of service
2013
As of March 31,

Office employees

Average age

2014
Average yearsof service

Average age

Average yearsof service

39.4

8.8

39.9

8.9

[Male][41.7][11.0][41.9][11.4][Female][36.9][6.5][37.9]

[6.4]

45.4

10.4

45.5

10.2

[Male][45.4][10.5][45.6][10.3][Female][40.0][5.0][40.3][2.4]

Sales employees

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

For the years ended March 31,

2013

2014

Office employees

¥424

¥399

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,

2013

2014

Sales employees

¥662

¥594

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 2014 55

Sony Assurance

Financial Data
Balance Sheets
Sony Assurance Inc.
As of March 31, 2013 and 2014
(Millions of yen)

2013

2014
Composition(%)

AmountAmountComposition(%)

Change4.84%¥ (1,531)

70.94

12,574

2.18

1,944

5.80

768

12.93

772

Assets:Cash and deposits
Cash

¥

8,443

6.63%

0

Deposits

8,443

Securities

88,670

¥

6,912
0
6,911

69.59

101,245

Japanese government bonds

68,646

79,685

Japanese municipal bonds

9,648

11,579Japanese corporate bonds

8,452

7,661

Japanese stocks

1,251

1,016

Foreign securities

497

197

Other securities

174

1,105

Tangible fixed assets

1,160

0.91

3,105

Buildings

249

243

Construction in progress

672

947

Other tangible fixed assets
Intangible fixed assets

238
7,515

1,914
5.90

8,283

Software

6,285

5,318

Software in progress

1,226

2,963

Other intangible fixed assets
Other assets
Accrued premiums

3
17,6771
13.87

18,450

1,199

1,250

Due from reinsurers

910

Due from foreign reinsurers

0

9

11,892

12,304129

132

Accounts receivable
Accrued income
Deposits
Suspense payments
Deferred tax assets
Total Assets

56 Sony Financial Holdings Inc. Financial Data Book 2014

419

448

4,026

4,294

3,953
¥127,421

3.10
100.00%4,716¥142,714

3.31
100.00%763¥15,293

Sony Assurance Financial Data

(Millions of yen)

2013

2014

AmountComposition(%)

AmountComposition(%)

Change¥ 99,209

77.86%¥110,741

77.60%¥11,531

5.99

2,006

0.68

119

Liabilities:
Underwriting reserves
Reserve for outstanding losses

28,599Underwriting reserves

70,609Other liabilities
Due to reinsurers

6,537

32,69878,043
5.13

45

8,543
67

Due to foreign reinsurers

7

16

Income taxes payable

227

2,159

Deposits received

11

12

Accounts payable

1,980

2,364

Suspense receipt

4,264

Reserve for employees’ retirement benefits

850

3,923
0.67

969

Reserve for directors’ retirement benefits

53

0.04

22

0.02

(31)

Reserve for employees’ bonuses

756

0.59

918

0.64

161

Reserve for price fluctuations and others

80

0.06

101

0.07

21
13,808Reserve for price fluctuations
Total Liabilities

80

101

107,487

84.36

121,295

84.99

Common stock

20,00015.70

20,00014.01

Capital surplus

20,00015.70

20,00014.01(16.08)(18,828)

Net Assets:

Capital reserve

20,000Retained deficits(20,492)

Other retained deficits
Unappropriated retained deficits
Total shareholders’ equity

20,000(20,492)(13.19)1,664(18,828)(20,492)(18,828)

19,50715.31

21,171

14.84

1,664

Net unrealized gains on other securities,
net of taxes

426

0.33

246

0.17

(179)

Total valuation and translation adjustments

426

0.33

246

0.17

(179)

Total Net Assets
Total Liabilities and Net Assets

19,93415.64

21,418

15.01

1,484

¥127,421

100.00%¥142,714

100.00%¥15,293

Sony Financial Holdings Inc. Financial Data Book 2014 57

Sony Assurance Financial Data

Statements of Income
Sony Assurance Inc.
For the years ended March 31, 2013 and 2014
(Millions of yen)

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

2013

2014

Change¥84,711¥89,864¥ 5,152

83,61588,6395,024

83,582

88,600

5,017

33

39

6

1,021

1,198

177

1,027

1,209

181

Gains on sale of securities

26

25

(1)

Gains on redemption of securities

̶

3

3

Transfer to interest and dividends on deposits of premiums

(33)

(39)

(6)

74

25

(48)

82,34086,8604,520

Underwriting expenses

61,83065,4693,639

Net losses paid

47,153

46,183(970)

Loss adjustment expenses

5,656

6,367

711

Net commissions and brokerage fees

1,373

1,387

13

Provision for reserve for outstanding losses

4,407

4,098

(309)

Provision for underwriting reserves

3,238

7,433

4,195

0

0

0

7

7

(0)

Losses on sale of securities

3

5

1

Losses on redemption of securities

3

2

(1)

20,485

21,378

892

17

4

(12)
632

Interest income and dividends

Other ordinary income
Ordinary Expenses

Other underwriting expenses
Investment expenses

Operating, general and administrative expenses
Other ordinary expenses

2,371

3,003

Extraordinary Gains

Ordinary Profit

̶

̶

̶

Extraordinary Losses

59

106

46

41

85

44
2

Losses on sale or disposal of fixed assets
Provision for reserve for price fluctuations and others

18

21

18

21

2

2,311

2,897

585

Income Taxes̶current

25

1,916

1,890

Income Taxes̶deferred

831

(683)

(1,514)

Total Income Taxes

856

1,232

¥ 1,454¥ 1,664

Provision for reserve for price fluctuations
Income Before Income Taxes

Net Income

58 Sony Financial Holdings Inc. Financial Data Book 2014

375
¥

209

Sony Assurance Financial Data

Statements of Changes in Net Assets
Sony Assurance Inc.
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013
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¥(21,946)¥(21,946)¥18,053¥ (44)¥ (44)¥18,009

Net income

̶

̶

̶

1,454

1,454

1,454

̶

̶

1,454

Net changes of
items other thanshareholders’ equity

̶

̶

̶

̶

̶

̶

470

470

470

Total changes during
the period

̶

̶

̶

1,454

1,454

1,454

470

470

1,925

Balance at the endof the current period¥20,000¥20,000¥20,000¥(20,492)¥(20,492)¥19,507

¥426

¥426

¥19,934

Balance at the beginningof the fiscal year
Changes during
the period(Millions of yen)

2014
Valuation and Translation
Adjustments

Shareholders’ Equity
Capital surplus

Retained deficits
Other retained
deficits

Unappropriated retained
Total
deficits
capital surplus

Total
retained
deficits

Total
shareholders’equityNet unrealized
Total
gains (losses)
valuation andon othertranslation
securities,
adjustments
net of taxes

Commonstock

Capitalreserve¥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

Balance at the beginningof the fiscal year

Total
Net Assets

Changes during
the period

̶

̶

̶

̶

̶

̶

(179)

(179)

(179)

Total changes during
the period

̶

̶

̶

1,664

1,664

1,664

(179)

(179)

1,484

Balance at the endof the current period¥20,000¥20,000¥20,000¥(18,828)¥(18,828)¥21,171

¥ 246

¥ 246

¥21,418

Sony Financial Holdings Inc. Financial Data Book 2014 59

Sony Assurance Financial Data

Statements of Cash Flows
Sony Assurance Inc.
For the years ended March 31, 2012 and 2013
(Millions of yen)

2013

2014

ChangeIncome before income taxes¥ 2,311¥ 2,897¥

Depreciation and amortization

1,697

2,137

440

Increase in reserve for outstanding losses

4,407

4,098

(309)

Increase in underwriting reserves

Cash flows from operating activities
585

3,238

7,433

4,195

Increase in reserve for employees’ retirement benefits

133

119

(13)

Increase (decrease) in reserve for directors’ retirement benefits

12

(31)

(43)

Increase in reserve for employees’ bonuses

48

161

112

Increase in reserve for price fluctuations
Interest income and dividends
Gains on securities

18

21

2

(1,027)(1,209)

(181)

(19)

(21)

(2)

Losses on tangible fixed assets

1

85

84

Losses on intangible fixed assets

40

̶

(40)

(755)

(970)

(215)

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

27

(3)

(31)

Subtotal

10,134

14,7184,583

Interest and dividends received

1,264

1,396

131

Income taxes (paid) refund

(323)

201

524

11,075

16,315

5,239

Purchases of securities(25,178)(30,964)(5,785)

Proceeds from sale and redemption of securities

21,166

18,891(2,274)

Total of net cash used in investment transactions(4,011)(12,072)(8,060)[Total of net cash provided by operating activities and investment transactions][7,064][4,243][(2,820)](813)(2,169)(1,356)

Others, net(3,268)(2,674)594

Net cash used in investing activities(8,094)(16,916)(8,822)

̶

̶

̶

̶

̶

̶

2,981

(600)

(3,582)

Net cash provided by operating activities
Cash flows from investing activities

Purchases of tangible fixed assets

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 fiscal year
Cash and cash equivalents at the end of the fiscal year

60 Sony Financial Holdings Inc. Financial Data Book 2014

5,635

8,617

2,981

¥ 8,617¥ 8,017¥ (600)Sony Assurance Financial Data

1 Loans by Borrower Category(Millions of yen)

As of March 31,

2013

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Normal loans
Total

2014

¥̶

¥̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

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,

2013

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

2014

¥̶

¥̶

̶

̶

̶

̶

̶

̶

¥̶

¥̶

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)

2013

2014

As of March 31,

AmountComposition(%)

AmountComposition(%)

Japanese government bonds
Japanese municipal bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Total¥68,646
9,648
8,452
1,251
497
174
¥88,670

77.4%
10.9
9.5
1.4
0.6
0.2
100.0%¥ 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%For the years ended March 31,

2013

2014

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

1.17%

1.25%

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

̶

̶

1.95
0.10
1.17%
1.19
1.96

2.41
0.06
1.24%
1.26
0.99

Sony Financial Holdings Inc. Financial Data Book 2014 61

Sony Assurance Financial Data

3- 03 Balance of securities by remaining period(Millions of yen)2013

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)¥3,1051,015
1,206¥14,205
3,430
1,936

¥2,044919
851¥ 6,945
1,463
1,926

¥5,551
1,202
1,070¥36,793
1,617
1,461
1,251

̶

̶

̶

̶

̶

299

̶

̶

103

93

̶

̶

̶

̶

̶

̶

¥5,627¥19,572¥3,815¥10,439¥7,918174¥41,297

Total¥68,646
9,648
8,452
1,251
497
174
¥88,670(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, 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¥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

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

As of March 31,

2013

2014

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Others
Total

¥

¥

1
152
648
27,415
382

3
108
575
31,575435

̶̶

¥28,599¥32,698

Underwriting reserves(Millions of yen)

As of March 31,

2013

2014

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
OthersTotal¥¥

62 Sony Financial Holdings Inc. Financial Data Book 2014254
42
30,061
38,880
1,370

352
91
34,35841,754
1,486

̶

̶

¥70,609¥78,043

Sony Assurance Financial Data

Breakdown of the balance of underwriting reserves(Millions of yen)2013

As of March 31,

Fire
MarinePersonal accident
Voluntary automobile
Compulsory automobile liability
Others
Total

Unearnedpremium
reserve

Catastrophe
reserve¥

230
36
28,08433,654
1,370

Contingency
reserve¥

Reserve forpolicyholders’dividends

Refundreserve

Total

23
5
1,909
5,225

¥ 0

¥̶

¥̶

¥

̶

̶

̶

254
42
30,061
38,880
1,370

62

4

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥63,377¥7,164

¥63

¥4

¥̶

¥70,609(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¥

Reserve forpolicyholders’dividends

Refundreserve

Total

31
9
2,185
6,225

¥ 0

¥̶

¥̶

¥

̶

̶

̶

352
91
34,35841,754
1,486

72

4

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥69,514¥8,451

¥73

¥4

¥̶

¥78,043

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

2013

2014

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)
2012

2013
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

As ofMarch 31,

Increase̶specific

Decrease

Decrease̶otherAs ofMarch 31,

¥ ̶

¥ ̶

¥ ̶

¥ ̶

¥ ̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

40
707
61

12
756
18

̶

̶

707

̶

̶

̶

53
756
80

Sony Financial Holdings Inc. Financial Data Book 2014 63

Sony Assurance Financial Data

(Millions of yen)

2013

2014
For the year ended March 31,

As ofMarch 31,

Increase̶specific

Decrease̶otherAs ofMarch 31,

¥ ̶

¥ ̶

¥ ̶

¥ ̶

¥ ̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

53
756
80

10
918
21

41
756

̶

̶

̶

22
918
101

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

Decrease̶

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

2013
For the years ended March 31,

2014

Gains onsales

Losses on
sales

Devaluation
lossesGains onsales

Losses on
sales

Devaluation
losses

¥26

¥3

¥̶

¥25

¥5

¥̶

̶

̶

̶

̶

̶

̶

Japanese government bonds, etc.
Japanese stocks
Foreign securities
Total

̶

̶

̶

̶

̶

̶

¥26

¥3

¥̶

¥25

¥5

¥̶

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,

2013

2014

Personnel expenses¥ 7,725¥ 8,511

Non-personnel expenses

17,787

18,571

629

662

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

1,373

1,387

¥27,515¥29,133

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)

2013
For the years ended March 31,

Gains

2014
Losses

Gains

LossesLand and buildings

¥̶

¥ 0

¥̶

¥̶

Other tangible fixed assets

̶

0

̶

85

Intangible fixed assets

̶

40

̶

̶

Total

¥̶

¥41

¥̶

¥85

64 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Assurance Financial Data

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

Held-to-maturity securities(Millions of yen)

2013

2014

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference¥73,019¥79,207¥6,188¥73,217¥77,844¥4,626

497

516

19

197

216

18

73,516

79,723

6,207

73,41478,0604,645Japanese government and corporate bonds

̶

̶

̶

873

869

(3)

Foreign securities

̶

̶

̶

̶

̶

̶

As of March 31,

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

Subtotal
Total

̶

̶

̶

873

869

(3)

¥73,516¥79,723¥6,207¥74,288¥78,930¥4,642

Stock of subsidiaries and affiliated companies
Not applicable

Available-for-sale securities(Millions of yen)2013
As of March 31,

2014

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference¥12,524¥12,421

1,251

729

¥102

¥19,414¥19,341

¥ 73

522

1,016

729

̶

286

̶

̶

̶

̶

̶

13,775

13,151624

20,43020,071

359

1,204

1,212

(8)

5,421

5,425

(3)

̶

̶

̶

̶

̶

̶

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

174

174

̶

1,105

1,105

̶

Subtotal

1,378

1,387

(8)

6,526

6,530

(3)

¥15,154¥14,538¥616¥26,957¥26,601

¥356

Total

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

2013
For the year ended March 31,

Amountof salesJapanese government and corporate bonds¥1,6052014

Total gains
on salesTotal losses
on salesAmountof salesTotal gains
on salesTotal losses
on sales¥26¥3¥4,121¥25¥5Sony Financial Holdings Inc. Financial Data Book 2014 65

Sony Assurance

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

For the years ended March 31,

2010

2011

2012

2013

2014

Net premiums written¥67,440¥73,343¥79,141¥83,582¥88,600

Year-on-year change

10.4%

8.8%

7.9%

5.6%

6.0%

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

1,979

1,469

2,109

1,398

1,874

18.9%

(25.8%)

43.5%(33.7%)

34.0%

68,174

74,16680,09684,71189,864

10.2%

8.8%

8.0%

5.8%

6.1%

2,565

2,144

2,859

2,371

3,003

17.8%

(16.4%)

33.3%(17.1%)

26.7%

1,604

1,297

1,299

1,454

1,664

̶

(19.2%)

0.2%

11.9%

14.4%

Net loss ratio

57.2%

60.0%

63.3%

63.2%

59.3%

Net expense ratio

26.1%

25.5%

25.7%

26.0%

25.6%

688

784

873

1,027

1,209

Year-on-year change
Net income
Year-on-year changeInterest income and dividends

0.6%

13.9%

11.4%

17.6%

17.7%

Yield on investments (income basis)

Year-on-year change

0.93%

0.95%

0.98%

1.09%

1.17%

Yield on investments (realized basis)

0.94%

0.97%

1.01%

1.11%

1.19%

Securities

73,23480,60884,47488,670101,245

̶

̶

̶

̶

̶

Underwriting reserves

58,12564,07367,37170,60978,043

Common stock

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

400,000

400,000

400,000

400,000

Loans

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

15,482

16,77218,00919,934

21,418

Total assets

98,340109,382

118,612

127,421

142,714

Assets accounted for as deposit premium accounts
Capital adequacy ratio

̶

̶

̶

̶

̶

15.7%

15.3%

15.2%

15.6%

15.0%

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

̶

̶

̶

̶

̶

1,018.5%

981.4%

557.8%

504.2%

527.6%

814

922

979

1,079

1,090

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)

2013
Composition(%)

YoY change
(%)

236

0.3%

34.1%

̶

̶

̶

For the years ended March 31,

AmountFire¥

Marine2014
Composition(%)

YoY change
(%)

275

0.3%

16.4%

̶

̶

̶

Amount¥Personal accident

7,898

9.6

6.4

8,360

9.6

5.8

Voluntary automobile

74,40690.1

5.2

78,73590.1

5.8

Compulsory automobile liability

̶

̶

̶

̶

̶

̶

Others

̶

̶

̶

̶

̶

̶

100.0%

5.9%

Total

¥82,541

Direct net premiums written per employee¥

76

100.0%

5.4%¥87,370(4.4%)¥

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.

66 Sony Financial Holdings Inc. Financial Data Book 20144.8%

Performance Indicators of Sony Assurance

2- 02 Net premiums written(Millions of yen)

2013
For the years ended March 31,

AmountFire¥

Marine2014

Composition(%)

YoY change
(%)

0.1%

19.3%

86

Amount¥Composition(%)

YoY change
(%)

0.1%

19.9%

104

142

0.2

56.9

153

0.2

8.0

Personal accident

8,138

9.7

6.7

8,613

9.7

5.8

Voluntary automobile

74,14088.7

5.2

78,47388.6

5.8

Compulsory automobile liability

1,075

1.3

20.3

1,255

1.4

16.8

OthersTotal

̶¥83,582̶̶

100.0%

5.6%

̶

¥88,600̶̶

100.0%

6.0%

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)

2013
For the years ended March 31,

AmountFire¥

Marine2014

Composition(%)

Net loss ratio
(%)

0.0%

22.1%

1

Amount¥Composition(%)

Net loss ratio
(%)

0.0%

12.1%

3

185

0.4

130.7

129

0.3

84.3

Personal accident

1,957

4.2

27.0

2,066

4.5

27.2

Voluntary automobile

44,004

93.3

66.6

42,86092.8

62.4

Compulsory automobile liability

1,004

2.1

93.5

1,123

2.4

89.5

̶

̶

̶

̶

̶

̶

100.0%

63.2%

100.0%

59.3%

OthersTotal¥47,153¥46,183

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,

2013

2014

Expenses related to underwriting¥21,760¥22,681

20,386

21,293Operating, general and administrative expenses related to underwriting
Net commissions and brokerage fees
Net expense ratio

1,373

1,387

26.0%

25.6%

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

2- 05 Underwriting profit(Millions of yen)

For the years ended March 31,

2013

2014

Underwriting income¥83,615¥88,639

Underwriting expenses

61,83065,469Operating, general and administrative expenses

20,386

21,293(0)(1)¥ 1,398¥ 1,874

Other income (expenses)
Underwriting profit

Notes: 1. Operating, general and administrative expenses is the amount related to underwriting in “Operating, general and administrative expenses” in 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 2014 67

Performance Indicators of Sony Assurance

Underwriting profit by type of policy(Millions of yen)

For the years ended March 31,

2013

2014

Fire

¥

¥

Marine

(80)
(19)

14

9

(204)

Personal accident
Voluntary automobile

(51)

1,490

2,116

Compulsory automobile liability̶̶

Others̶̶¥1,398¥1,874Total

2- 06 Net loss ratio, net expense ratio and combined ratio%2013
For the years ended March 31,

Net loss
ratio

2014

Net expense
ratio

Combinedratio

Net loss
ratio

60.2%

82.3%

12.1%

Net expense
ratio

Combined
ratio

40.9%

53.0%

Fire

22.1%

Marine

130.7

3.4

134.1

84.3

3.7

88.0

Personal accident

27.0

25.0

52.0

27.2

26.1

53.3

Voluntary automobile

66.6

26.5

93.2

62.4

26.0

88.3

Compulsory automobile liability

93.5

̶

93.5

89.5

̶

89.5

Others

̶

̶

̶

̶

̶

̶

Total

63.2%

26.0%

89.2%

59.3%

25.6%

84.9%

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)2013
As of March 31,

Cash and deposits

Amount

¥

8,443

2014
Composition
(%)

6.6%

Amount¥6,911

Composition
(%)

4.8%

Call loans

̶

̶

̶

̶

Bond trading with repurchase agreement

̶

̶

̶

̶

Bonds paid for transactions in debentures

̶

̶

̶

̶

Monetary claims purchased

̶

̶

̶

̶

Securities under proprietary accounts

̶

̶

̶

̶

Monetary trusts

̶

̶

̶

̶

88,67069.6

101,245

70.9

̶

̶

̶

̶

249

0.2

243

0.2

97,363

76.4

108,400

76.0¥127,421

100.0%¥142,714

100.0%

Securities
Loans
Land and buildings
Total
Total assets

68 Sony Financial Holdings Inc. Financial Data Book 2014

Performance Indicators of Sony Assurance

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

2013

2014

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%

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

1,026

1.17

1,208

1.24

̶

̶

̶

̶

̶

̶

̶

̶

1,027
0
¥1,027

1.09

1,209
0
¥1,209

1.17

1.11%
1.84

1.19%
0.93

Notes: 1. Total revenues are equal to interest income and dividends of statements of income of Sony Assurance.
2. In principle, 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)2013
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)

2014

AmountComposition(%)

AmountComposition
(%)

¥ ̶

̶%

¥ ̶

̶%

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

497

100.0

197

100.0

̶

̶

̶

̶

497
¥497

100.0
100.0%

197
¥197

100.0
100.0%

1.95%
1.95%
1.95%

2.41%
2.41%
2.41%

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 2014 69

Performance Indicators of Sony Assurance

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

As of March 31,

2013

2014

(A) Total non-consolidated solvency margin¥27,370¥30,118

19,507

21,171

Reserve for price fluctuations

80

101

Contingency reserve

63

73

Catastrophe reserve

7,164

8,451

̶

̶

Capital or treasury

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

554

320

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

10,855

11,416

Ordinary insurance risk

R1

9,865

10,386

Third-sector insurance risk

R2

̶

̶

Assumed interest rate risk

R3

67

77

Asset management risk

R4

485

662

Business management risk

R5

331

353

Major catastrophe risk

R6

643

649

504.2%

527.6%(C) Non-consolidated solvency margin ratio[(A)/{(B) × (1/2)}] × 100

Note: The figures for each fiscal year end 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 applicable for respective fiscal year ends.

• 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.

70 Sony Financial Holdings Inc. Financial Data Book 2014

Performance Indicators of 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.

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 2014 71

Sony Bank

Financial Data (Consolidated)
Consolidated Balance Sheets
Sony Bank Inc. and consolidated subsidiaries
As of March 31, 2013 and 2014
(Millions of yen)

2013

2014

Assets:Cash and due from banks

62,322¥ 174,865

Call loans and bills bought

10,0006,000

Monetary trusts

18,182

20,484

Securities

906,796

771,760

Loans

970,226

1,057,419

Foreign exchanges

7,954

7,752

Other assets

32,99726,012

Tangible fixed assets

1,108

1,186

Buildings

262

263

Leased assets

117

87

Other tangible fixed assets

729

836

4,587

4,594

Software

4,325

4,412

Goodwill

258

179

3

3

91

165

(1,641)(1,527)¥2,012,627¥2,068,713

Intangible fixed assets

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

72 Sony Financial Holdings Inc. Financial Data Book 2014¥

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

2013

2014

¥1,857,447¥1,890,022

Liabilities:
Deposits
Call money and bills sold

10,0006,000

Borrowed money

22,00040,000Foreign exchanges

87

40

52,33856,731

Reserve for employees’ bonuses

619

658

Reserve for employees’ retirement benefits516

̶Other liabilities

Net defined benefit liability

̶

727

Reserve for directors’ retirement benefits

108

51

Provision for point card certificates98

87

Deferred tax liabilities

275

553

1,943,493

1,994,872

Common stock

31,00031,000Capital surplus

21,00021,000Retained earnings

12,48915,939Total shareholders’ equity

64,48967,939Net unrealized gains on other securities, net of taxes

6,536

7,255

Net deferred losses on hedging instruments, net of taxes(3,231)(2,571)

Total Liabilities
Net Assets:

Foreign currency translation adjustment

̶0Remeasurements of defined benefit plans, net of taxes

̶

(57)

3,304

4,626

Total accumulated other comprehensive income
Minority interests

1,339

1,275

Total Net Assets

69,13473,840¥2,012,627¥2,068,713

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2014 73

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2013 and 2014
(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
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
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 (loss)
Net Income

2013

2014

¥34,328
25,954
13,877
12,007
13
55
0
5,444
2,815
114
15
99
29,874
7,886
6,296
10
222
1,356
2,648
2,534
16,419
385
325
60
4,454
367
51
315
0
4,086
490
240
730
3,356
78
¥ 3,277¥35,795
26,32814,134
12,077
8
107
0
5,137
4,174
155
21
134
30,159
6,400
4,905
6
260
1,227
2,957
3,411
17,090
298
246
52
5,636
12
10
̶

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

Consolidated Statements of Comprehensive Income
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2013 and 2014

Income Before Minority Interests
Other Comprehensive Income
Net unrealized gains 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

74 Sony Financial Holdings Inc. Financial Data Book 2014

(Millions of yen)

2013

2014

¥3,356
4,135
4,768
(633)

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

̶
̶

7,492
7,413
78

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Changes in Net Assets
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013
Shareholders’ Equity
Commonstock

CapitalsurplusRetainedearnings

Total
shareholders’equity¥31,000¥21,000¥ 9,212¥61,212Net income

̶

̶

3,277

3,277

Net changes of items other than shareholders’ equity

̶

̶

̶

̶

̶

̶

3,277

3,277

¥31,000¥21,000¥12,489¥64,489

Balance at the beginning of the current period
Changes during the period

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

2013
Accumulated Other Comprehensive Income

Balance at the beginning of
the current period

Net unrealized
gains on othersecurities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income¥1,767¥(2,597)

¥̶

¥̶

̶

̶

̶

Minority
Interests

Total Net
Assets¥ (830)¥1,260¥61,642

̶

̶

̶

3,277

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

4,768

(633)

̶

̶

4,135

78

4,214

Total changes during the period

4,768

(633)

̶

̶

4,135

78

7,492

Balance at the end of the current period¥6,536¥(3,231)¥̶¥̶¥3,304¥1,339¥69,134(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2014 75

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Changes in Net Assets (Continued)(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

̶

̶

̶

̶

̶

̶

3,449

3,449

¥31,000¥21,000¥15,939¥67,939

Balance at the beginning of the current period
Changes during the period

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

2014
Accumulated Other Comprehensive Income

Balance at the beginning of
the current periodNet
unrealized
gains on othersecurities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes

Foreigncurrencytranslation
adjustments

Remeasurements ofdefinedbenefit plans,
net of taxes

Total
accumulated
othercomprehensive
income¥6,536¥(3,231)¥̶¥ ̶¥3,304¥1,339¥69,134

̶

̶

̶

̶

̶

̶

3,449

719

659

0

(57)

1,321

(64)

1,256

Minority
Interests

Total Net
AssetsChanges during the period
Net income
Net changes of items other thanshareholders’ equity
Total changes during the period
Balance at the end of the current period

719

659

0

(57)

1,321

(64)

4,706

¥7,255¥(2,571)

¥0

¥(57)

¥4,626¥1,275¥73,840

76 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Bank Financial Data (Consolidated)

Consolidated Statements of Cash Flows
Sony Bank Inc. and consolidated subsidiaries
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013

2014

Cash flows from operating activities
Income before income taxes¥

Depreciation and amortization

4,086

¥

5,624

1,809

1,808

79

79

Increase (decrease) in allowance for loan losses

6

(114)

Increase in reserve for employees’ bonuses

17

39

Increase in reserve for employees’ retirement benefits75̶

Increase in net defined benefit liability

̶86

Increase (decrease) in reserve for directors’ retirement benefits

15

(56)

Increase (decrease) in provision for point card certificates

3

(10)

Interest income(25,954)(26,328)

Interest expenses

7,886

6,400

(Gains) losses on securities(2,562)

2,908

Gains on monetary trusts

(15)

(21)

(36,761)(29,375)

57

13

Net increase in loans(134,664)(87,193)

Net increase in deposits

96,271

33,466

̶

20,000Net decrease in foreign exchange (assets)

981

202

Net increase (decrease) in foreign exchange (liabilities)

51

(47)

Interest income

29,56030,180Interest expenses(8,349)(6,551)

Amortization of goodwill

Exchange gains
Losses on disposal of fixed assets

Net increase in borrowed money (excluding subordinated borrowings)

Others, net

2,620

9,542

Subtotal(64,783)(39,345)

Income taxes paid

(2,073)46

Net cash used in operating activities(66,857)(39,299)

Cash flows from investing activities
Purchases of securities(279,518)(189,416)

Proceeds from sale of securities

82,954

183,378

Proceeds from redemption of securities

238,488

164,766

Investments in monetary trusts(4,942)(2,301)

Purchases of tangible fixed assets

(302)

(262)

Purchases of intangible fixed assets(1,310)(1,682)505

̶Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation
Others2(11)35,876

154,470

10,000̶Net decrease in subordinated borrowings

̶(2,000)

Payments for leased obligations

(42)

(31)

(6,500)

(600)

276

̶

3,733

(2,631)

Net cash provided by investing activities
Cash flows from financing activities
Increase in subordinated borrowings

Proceeds from securitization of receivables
Proceeds from sale and leaseback
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

3

3

Net increase (decrease) in cash and cash equivalents(27,244)

112,543

Cash and cash equivalents at the beginning of the fiscal year

89,56762,322¥ 62,322¥ 174,865

Cash and cash equivalents at the end of the fiscal year

Sony Financial Holdings Inc. Financial Data Book 2014 77

Sony Bank

Financial Data (Non-consolidated)
Balance Sheets
Sony Bank Inc.
As of March 31, 2013 and 2014
(Millions of yen)

2013

2014

Assets:Cash and due from banks
Cash¥61,936¥ 171,22730

28

61,905

171,198

Call loans

10,0006,000

Monetary trusts

18,182

20,484

Securities

908,847

773,811

194,000

96,823Due from banks

Japanese government bonds
Japanese municipal bonds

61,251

56,770Japanese corporate bonds

202,401

159,524

Japanese stocks

2,050

2,050

Other securities

449,142458,641

970,226

1,057,419

963,371

1,051,697

6,854

5,722

7,954

7,752

7,954

7,752

26,062

17,995

74

719

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

62

123

Accrued income

4,751

4,195

̶

100

Derivatives

11,514

5,608

Accounts receivable

5,385

3,358

Others

4,273

3,890

Initial margins of futures markets

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

78 Sony Financial Holdings Inc. Financial Data Book 2014

838

795

238

221

0

0

598

573

2,674

2,746

2,671

2,743

2

2

(1,641)(1,527)¥2,005,081¥2,056,704

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

2013

2014

¥1,857,447¥1,890,022

Liabilities:
Deposits
Ordinary deposits

382,611509,503

Time deposits

1,082,392

1,014,426

Other deposits

392,444366,092

Call money

10,0006,000

Borrowed money

22,00040,000Borrowed money

22,00040,000Foreign exchanges

87

40

Foreign bills sold̶

9Foreign bills payable87

30

46,23846,021Other liabilities
Unsettled exchange payable67̶Income taxes payable

5

2,284

Accrued expenses

4,224

4,239

Unearned revenue0̶

Initial margins of futures markets

16,975

19,846

Derivatives

24,18818,62400Asset retirement obligations

118

120

Others657

906

Reserve for employees’ bonuses

561

598

Reserve for employees’ retirement benefits

461

544

Reserve for directors’ retirement benefits

98

44

Provision for point card certificates98

87

Deferred tax liabilities

275

568

1,937,270

1,983,929

Common stock

31,00031,000Capital surplus

21,00021,00021,00021,000

Leased obligation

Total Liabilities
Net Assets:

Capital reserves
Retained earnings
Other retained earnings
Unappropriated retained earnings
Total shareholders’ equity

12,506

16,091

12,506

16,091

12,506

16,09164,506

68,091

Net unrealized gains on other securities, net of taxes

6,536

7,255

Net deferred losses on hedging instruments, net of taxes(3,231)(2,571)

Total valuation and translation adjustments

3,304

4,683

Total Net Assets

67,811

72,774¥2,005,081¥2,056,704

Total Liabilities and Net Assets

Sony Financial Holdings Inc. Financial Data Book 2014 79

Sony Bank Financial Data (Non-consolidated)

Statements of Income
Sony Bank Inc.
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013

2014

Ordinary Revenues¥31,351¥33,303

Interest income

25,94826,328Interest income on loans

13,871

14,134

Interest income and dividends on securities

12,007

12,077

Interest income on call loans

138Interest income on deposits with banks

55

107

Other interest income

̶0Fees and commissions

2,465

2,645

Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating income

148

149

2,316

2,496

2,815

4,174

1,874

2,782

Gains on sale of bonds

794

1,354

Gains on redemption of bonds

145

0

Gains on derivatives

̶36

Other ordinary income

122

155

Gains on foreign exchange transactions

Income from monetary trusts, net

14

21

Others107

134

Ordinary Expenses

27,06827,458Interest expenses

7,850

6,396

Interest expenses on deposits

6,297

4,905

Interest expenses on call money

10

6Interest expenses on borrowed money

186

256

Interest expenses on interest rate swaps

1,355

1,227

Other interest expenses
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions

̶

0

2,344

2,668

93

107

2,250

2,560

Other operating expenses

2,534

3,411

Losses on sale of bonds

2,091

2,358

̶

1,053

442

̶

13,955

14,684384

297

Provision of allowance for loan losses

325

246

Write-off of loans

113

Others47

47

Ordinary Profit

4,282

5,845

Extraordinary Losses

2,791

̶

2,743

̶

Losses on redemption of bonds
Expenses from derivatives other than for trading or hedging
General and administrative expenses
Other ordinary expenses

Losses on valuation of stocks of subsidiaries and affiliates
Losses on disposal of fixed assets
Income Before Income Taxes
Income Taxes̶current

47

̶

1,491

5,845

487

2,460

Income Taxes̶deferred

125

(200)

Total Income Taxes

612

2,260

879

¥ 3,585

Net Income

80 Sony Financial Holdings Inc. Financial Data Book 2014¥

Sony Bank Financial Data (Non-consolidated)

Statements of Changes in Net Assets
Sony Bank Inc.
For the years ended March 31, 2013 and 2014
(Millions of yen)

2013
Shareholders’ Equity
Capital surplus

Retained earnings
Other retained
earnings

Commonstock

Capitalreserve¥31,000

Net income
Net changes of items otherthan shareholders’ equity

Balance at the beginning of
the current period

Unappropriatedretainedearnings

Total
retainedearnings

Total
shareholders’equity¥̶¥11,627¥11,627¥63,627

̶

̶

879

879

879

Other
capital surplus

Total
capital surplus¥21,000¥̶

¥21,000̶̶̶Earnedreserve

Changes during the period

̶

̶

̶

̶

̶

̶

̶

̶

Total changes during
the period

̶

̶

̶

̶

̶

879

879

879

Balance at the end of
the current period¥31,000¥21,000¥̶

¥21,000¥̶

¥12,506¥12,506¥64,506(Millions of yen)

2013
Valuation and Translation Adjustments

Balance at the beginning of the current period

Net unrealized
gains on othersecurities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes

Totalvaluationand translation
adjustments¥1,767¥(2,597)¥ (830)¥62,796

̶

̶

̶

879
4,135

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

4,768

(633)

4,135

Total changes during the period

4,768

(633)

4,135

5,014

Balance at the end of the current period¥6,536¥(3,231)¥3,304¥67,811(Continued on next page)

Sony Financial Holdings Inc. Financial Data Book 2014 81

Sony Bank Financial Data (Non-consolidated)

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

2014
Shareholders’ Equity
Capital surplus

Retained earnings
Other retained
earnings
Unappropriatedretainedearnings

Total
retainedearnings

Total
shareholders’equity¥̶¥12,506¥12,506¥64,506

̶

̶

3,585

3,585

3,585

Commonstock

Capitalreserve¥31,000¥21,000¥̶

¥21,000

Net income

̶

̶

̶

Net changes of items otherthan shareholders’ equity

Balance at the beginning of
the current period

Other
Total
capital surplus capital surplus

Earnedreserve

Changes during the period

̶

̶

̶

̶

̶

̶

̶

̶

Total changes during
the period

̶

̶

̶

̶

̶

3,585

3,585

3,585

Balance at the end of
the current period¥31,000¥21,000¥̶

¥21,000¥̶¥16,091¥16,091¥68,091(Millions of yen)

2014
Valuation and Translation Adjustments

Balance at the beginning of the current period

Net unrealized
gains on othersecurities,
net of taxes

Net deferredlosses on
hedging
instruments,
net of taxes

Totalvaluationand translation
adjustments¥6,536¥(3,231)¥3,304¥67,811

̶

̶

̶

3,585

719

659

1,378

1,378

719

659

1,378

4,963

¥7,255¥(2,571)¥4,683¥72,774

Total Net
AssetsChanges during the period
Net income
Net changes of items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period

82 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Bank Financial Data (Non-consolidated)

1 Loans by Borrower Category(Millions of yen)

As of March 31,

2013

2014

Category
Bankrupt and quasi-bankrupt loans

¥

714

¥

847

Doubtful loans

1,094

980

Sub-standard loans

2,222

1,882

Normal loans
Total

978,005

1,064,528¥982,036¥1,068,238

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

2 Risk-monitored Loans(Millions of yen)

As of March 31,

2013

2014

Bankrupt loans

¥ 150

¥ 308

Non-accrual delinquent loans

1,534

1,403

Past due loans (3 months or more)̶̶

Restructured loans

2,220

1,880

Total

¥3,905¥3,592

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

2013
For the years ended March 31,

Domestic
division

Net interest income¥11,894

2014

International
division¥6,254

Domestic
division

Total¥18,149¥12,575

International
division¥ 7,413[63]
Interest income

17,0498,962

25,948[13]
16,755

9,585

26,328[63]
Interest expenses

Total¥19,988

[13]

5,155

2,707

7,798

4,180

2,172

6,339

14

107

121

(99)

76

(22)

Fees and commissions received

2,332

132

2,465

2,534

110

2,645

Fees and commissions paid

2,318

25

2,344

2,634

34

2,668

Net trading income

̶

̶

̶

̶

̶

̶

Trading income

̶

̶

̶

̶

̶

̶

Net fees and commissions

Trading expenses

̶

̶

̶

̶

̶

̶

(1,511)

1,793

281

(1,870)

2,633

762

Other operating income

144

2,670

2,815

425

3,749

4,174

Other operating expenses

1,656

877

2,534

2,295

1,116

3,411

Net other operating income

Gross operating profit

10,397

8,154

18,551

10,605

10,123

20,729Gross operating profit ratio

0.69%

1.86%

0.97%

0.71%

2.22%

1.06%

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 (¥51 million̶FY2012, ¥57 million̶FY2013).
3. [ ] indicates interest on borrowed funds between the Domestic division and the International division.
Gross operating profit for the period
× 100
4. Gross operating profit ratio =Average balance of investment accounts

Sony Financial Holdings Inc. Financial Data Book 2014 83

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)

2013
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

2014

Interest[̶]¥1,491,347
893,524
529,695
10,08258,045[25,696]
1,475,200
1,440,120
10,00013,616

Yield (%)

[̶]
¥17,049
13,835
3,145
13
55
[63]
5,155
3,587
10
186

1.14%
1.54
0.59
0.13
0.09
0.34
0.24
0.10
1.37

Averagebalance

Interest[7,021]¥1,493,116
1,002,013
361,440
6,690
115,951[̶]1,482,812
1,464,357
6,690
31,183

Yield (%)

[13]
¥16,755
14,087
2,538
8
107
[̶]
4,180
2,744
6
256

1.12%
1.40
0.70
0.13
0.09
0.28
0.18
0.10
0.82

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” (¥3,090 million—FY2012, ¥2,975 million—FY2013) is
excluded. In the financing accounts, the average balance of funds for investing monetary trusts (¥14,233 million—FY2012, ¥19,419 million—FY2013)
and the interest expenses on monetary trusts (¥49 million—FY2012, ¥54 million—FY2013) are excluded respectively.

International division(Millions of yen)

2013
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

2014

Interest

Yield (%)

Averagebalance

Interest

Yield (%)

[25,696]¥436,698
2,170
400,021[63]¥8,962
35
8,862

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

[̶]
373,405
373,576

[̶]
2,707
2,709

0.72
0.72

[7,021]
382,622
376,026

[13]
2,172
2,161

0.56
0.57

̶

̶

̶

̶

̶

̶

̶

̶

̶

1

0

0.57

2.05%
1.65
2.21

[̶]

[̶]

¥454,623
3,780
443,006¥9,585
46
9,538

2.10%
1.22
2.15

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 (¥206 million—FY2012, ¥472 million—FY2013) and the interest
expenses on monetary trusts (¥1 million—FY2012, ¥2 million—FY2013) are excluded respectively.

Total(Millions of yen)

2013
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¥1,902,349
895,694
929,716
10,08258,045
1,822,910
1,813,697
10,00013,616

Interest¥25,948
13,871
12,007
13
55
7,798
6,297
10
186

2014
Yield (%)

1.36%
1.54
1.29
0.13
0.09
0.42
0.34
0.10
1.37

Averagebalance¥1,940,719
1,005,793
804,446
6,690
115,951
1,858,413
1,840,383
6,690
31,185Interest¥26,328
14,134
12,077
8
107
6,339
4,905
6
256

Yield (%)

1.35%
1.40
1.50
0.13
0.09
0.34
0.26
0.10
0.82

Note: In the investment accounts, the average balance of non-interest-bearing “due from banks” (¥3,090 million—FY2012, ¥2,975 million—FY2013) is excluded.
In the financing accounts, the average balance of funds for investing monetary trusts (¥14,439 million—FY2012, ¥19,891 million—FY2013) and the interest
expenses on monetary trusts (¥51 million̶FY2012, ¥57 million̶FY2013) are excluded respectively.

84 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Bank Financial Data (Non-consolidated)

Interest spread
(%)

2013
For the years ended March 31,

Yield on investment
Yield on financing
Interest spread

Domestic
division

2014

International
division

1.14%
0.34
0.79

2.05%
0.72
1.32

Domestic
division

Total

1.36%
0.42
0.93

International
division

1.12%
0.28
0.84

2.10%
0.56
1.54

Total

1.35%
0.34
1.01

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

2013

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¥1,019
2,058
(256)
0
5
372
340
̶

117

2014

Increase(decrease)
due to yield¥ (779)(1,455)
(117)
(0)
4
(728)
(242)
(0)
(32)

Net increase(decrease)

¥ 240
603
(373)
(0)
10
(356)
97
(0)
85

Increase(decrease)
due to balance

¥ 20
1,679
(999)
(4)
55
26
60
(3)
241

Increase(decrease)
due to yield

Net increase(decrease)¥ (314)(1,427)392(0)(2)(1,001)
(903)
(0)
(171)

¥(294)
252
(606)
(4)
52
(974)
(843)
(3)
69

International division(Millions of yen)

2013

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

2014

Increase(decrease)
due to yield

Net increase(decrease)

Increase(decrease)
due to balance

Increase(decrease)
due to yield

Net increase(decrease)

¥ 305
13
1,231

¥ 432
(5)
(390)

¥ 738
7
841

¥367
26
952

¥ 255
(16)
(276)

¥ 623
10
676

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

81
83

(763)
(763)

(682)
(680)

66
17

(602)
(565)

(535)
(547)

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

0

0

Total
(Millions of yen)

2013

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¥1,992
2,071
144
0
5
739
561
̶

117

Increase(decrease)
due to yield¥ (903)(1,460)322(0)4(1,667)(1,144)
(0)
(32)

2014
Net increase(decrease)¥1,089
611
467
(0)
10
(927)
(583)
(0)
85

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)
(1,611)(1,483)(0)(171)

Net increase(decrease)

¥ 379
262
69
(4)
52
(1,459)(1,391)(3)
69

Note: Where the reason for increase or decrease is overlapping between “due to balance” and “due to yield,” the amount of increase or decrease is included in “dueto yield.”Sony Financial Holdings Inc. Financial Data Book 2014 85

Sony Bank Financial Data (Non-consolidated)

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

For the years ended March 31,

2013

2014

¥ 2,983¥ 3,323

Employee retirement benefits

81

103

Fringe benefit expenses

398

454

Depreciation and amortization

1,274

1,217

Leases on land, buildings and machinery

1,149

1,004

Maintenance fees

2,446

2,475

Repairs and utilities

5

7

Supplies expenses

163

171

Heat, light and water32

33

Travel expenses

12

13

Communication expenses

726

685

Advertising expenses

795

990

Membership fees, donations and social expenses

16

13

1,552

1,503

Taxes and public dues

543

560

Deposit insurance

894

980

Others877

1,145¥13,955¥14,684

Salaries

Outsourcing

Total

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

Held-to-maturity bonds(Millions of yen)

2013
Balance sheet
amountFair value

Japanese government bonds¥7,952

Japanese corporate bonds

418

2014
Difference

Balance sheet
amountFair value

Difference¥8,524¥572¥7,961¥8,403

¥441

442

23

360

379

18

8,371

8,966

595

8,322

8,782

459

Japanese government bonds

̶

̶

̶

̶

̶

̶

Japanese corporate bonds

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

̶

¥8,371¥8,966¥595¥8,322¥8,782¥459

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.

86 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Bank Financial Data (Non-consolidated)

Available-for-sale securities(Millions of yen)2013
As of March 31,

2014

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 cost
Bonds

¥393,611¥385,108¥ 8,503¥299,596¥292,815¥ 6,780

Japanese government bonds

136,251

132,193

4,057

86,361

82,951

3,410

Japanese municipal bonds

61,251

59,3591,891

56,77055,212

1,558

Japanese corporate bonds

196,109

193,5552,554

156,463

154,652

1,811

356,788

349,098

7,689

346,162

340,123

6,038

353,713346,8126,900

342,601

337,837

4,763

3,075

2,286

789

3,561

2,286

1,275

750,400

734,206

16,193645,758

632,939

12,819(0)

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

55,67056,180

(509)

5,200

5,200

49,79650,259

(462)

2,500

2,500

(0)

Japanese municipal bonds

̶

̶

̶

̶

̶

̶

Japanese corporate bonds

5,873

5,920

(46)

2,700

2,700

̶

Japanese government bonds

Others

92,354

94,011(1,657)

112,478

113,017(538)

Foreign bonds

88,352

88,965(613)

112,478

113,017(538)

Others

4,001

5,045

(1,043)̶̶̶

Subtotal
Total

148,024

150,191(2,167)

117,678

118,217(538)¥898,425¥884,398¥14,026¥763,437¥751,157¥12,280

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,

2013

2014

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)2013

As of March 31,

Monetary trusts for investment

Balance sheet
amount¥442

2014
Net valuation gains(losses) recorded inincome for fiscal year¥̶Balance sheet
amount¥484

Net valuation gains(losses) recorded inincome for fiscal year¥̶Monetary trusts for held-to-maturity
Not applicableSony Financial Holdings Inc. Financial Data Book 2014 87

Sony Bank Financial Data (Non-consolidated)

Other monetary trusts(Millions of yen)

2013
Balance sheet
amountAs of March 31,

Other monetary trusts

Acquisition cost

¥17,740

Difference¥17,740

Of which, balance sheet
amount exceeds
acquisition cost

Of which, balance sheet
amount does notexceed acquisition cost

¥̶

¥̶

¥̶

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)

2014
Balance sheet
amountAs of March 31,

Other monetary trusts

Acquisition cost

¥20,000

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

Difference¥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.”

4- 03 Fair value information on derivatives
Interest rate derivatives[For the year ended March 31, 2013](Millions of yen)

Derivatives for which hedge accounting is not applied
As of March 31,

2013

Category

OTC:

Type

Notional amountInterest rate swaps
Floating rate receive/Fixed rate pay

Total

Notional amountover 1 year

Fair value

Valuation gains(losses)¥20,000¥̶¥(119)¥(119)¥¥̶¥(119)¥(119)

̶

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.
(Millions of yen)

Derivatives for which hedge accounting is applied
As of March 31,

2013

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¥ 79,195¥ 74,491¥ (2,811)

378,446¥

̶

¥332,030(19,225)̶¥(22,036)

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, 2014]
Derivatives for which hedge accounting is not applied
Not applicable88 Sony Financial Holdings Inc. Financial Data Book 2014

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

Derivatives for which hedge accounting is applied
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.

Currency derivatives[For the year ended March 31, 2013](Millions of yen)

Derivatives for which hedge accounting is not applied
As of March 31,

2013

Category

OTC:

Type

Notional amount

Notional amountover 1 year

Fair value

Valuation gains(losses)

Forward foreign exchanges
Sold¥45,200

¥̶

¥ 117

¥ 117

Bought

91,703

̶

(297)

(297)

Sold

47,646

̶

(619)

(619)

Bought10,587

̶

916

916

1,036

̶

(6)

7

Foreign exchange margin transactions

Currency options
Sold
Currency forwards
Bought
Total

¥

7,559

̶

10

10

̶

¥̶

¥ 120

¥ 134

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.
(Millions of yen)

Derivatives for which hedge accounting is applied
As of March 31,
MethodFair value hedge
accounting

2013
Type

Currency swaps

Hedged item

Available-for-sale securities (bonds)

Total

Notional amount

Notional amountover 1 year

Fair value¥45,300¥3,500¥9,361¥¥¥9,361̶̶

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 2014 89

Sony Bank Financial Data (Non-consolidated)[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)

Sold

45

̶

(0)

(0)

Bought

9,560

̶

337

337

̶

¥̶

¥ 1,239¥ 1,226

Category

OTC:

Type

Fair value

Valuation gains(losses)¥¥

Forward foreign exchanges
(14)

(14)

Foreign exchange margin transactions

Currency options

Currency forwards

Total

¥

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

90 Sony Financial Holdings Inc. Financial Data Book 2014

Notional amount

Notional amountover 1 year

¥12,209¥522¥1,340¥¥ ̶¥1,340̶

Fair value

Sony Bank

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

For the years ended March 31,

2010

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

2011

¥

30,5002,930
1,646
31,000620,000
58,9891,612,186
1,510,051
586,654880,133
12.09%

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%¥

33,3035,845
3,585
31,000620,000
72,774
2,056,704
1,890,022
1,057,419
773,81111.72%

̶

̶

̶

̶

̶

239

288

321

371

430

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

2013

2014

For the years ended March 31,

Domestic
divisionInternational
division

Total

Domestic
divisionInternational
division

Total

Floating deposits
Time and saving deposits
Other deposits
Total¥ 349,049
1,091,039
30¥1,440,120¥167,413
206,151
11¥373,576¥ 516,463
1,297,191
42¥1,813,697¥ 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

Year-end balance(Millions of yen)2013
As of March 31,

Floating deposits
Time and saving deposits
Other deposits
Total

2014

Domestic
divisionInternational
division¥ 382,611
1,082,392
12¥1,465,015¥190,866
201,565̶

¥392,431

Total

Domestic
divisionInternational
division¥ 573,477
1,283,957
12¥1,857,447¥ 509,503
1,014,426
17¥1,523,947¥184,136
181,938̶¥366,074

Total¥ 693,640
1,196,364
17¥1,890,022

Note: Floating deposits of the Domestic division include deposits from the parent company and its subsidiaries in the amount of ¥145 million and ¥52 million asof March 31, 2013 and 2014, respectively.

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

2013

2014

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

¥ 160,543
584,983
378,627
36,578
14,532
52,520¥1,227,785

¥̶
̶
̶
̶
̶
̶

¥̶

Total

Fixed rate
time deposits

Floating rate
time deposits¥ 160,543
584,983
378,627
36,578
14,532
52,520¥1,227,785¥ 150,438
496,488381,41735,243
10,83061,490¥1,135,909

¥̶
̶
̶
̶
̶
̶

¥̶

Total

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

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

Sony Financial Holdings Inc. Financial Data Book 2014 91

Performance Indicators of Sony Bank (Non-consolidated)

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

2013
For the years ended March 31,

Domestic
division

Loans on bills¥

Loans on deeds

886,591̶International
division¥̶

Domestic
division

Total

¥

̶

¥

888,761

995,555

6,932

0

6,933

̶

̶

̶

¥893,524¥2,170¥895,694

Bills discounted

International
division

¥

̶

2,169

Overdrafts
Total

2014

̶

Total

¥

̶

3,779

999,335

6,457

0

6,457

̶

̶

̶

¥1,002,013¥3,780¥1,005,793

Year-end balance(Millions of yen)

2013

2014

As of March 31,

Domestic
division

Loans on bills¥

Loans on deeds

960,4882,883

963,371

1,047,572

4,124

1,051,697

6,854

0

6,854

5,722

̶

5,722

Overdrafts

̶Bills discounted
Total

International
division¥̶

Domestic
division

Total

¥

̶

¥

International
division

¥

̶

̶

Total

¥

̶

̶

̶

̶

̶

̶

̶

¥967,342¥2,883¥970,226¥1,053,295¥4,124¥1,057,419

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

2013

2014

As of March 31,

Fixedinterest rates

Floating
interest rates

Total

Less than 1 year¥60

¥ 16,618¥ 16,678

Over 1 year, not exceeding 3 years

1,151

43,265

Over 3 years, not exceeding 5 years

3,947

30,363

Over 5 years, not exceeding 7 years

5,032Over 7 years, not exceeding 10 years

17,860Fixedinterest rates¥

Floating
interest rates

Total

149

¥ 18,761¥

18,911

44,416

1,566

45,34946,91534,311

3,841

25,12628,967

12,533

17,566

7,430

10,397

17,827

18,58636,446

21,25920,89942,159Over 10 years

518,382

302,424

820,807550,360

352,277

902,637

Total¥546,435¥423,790¥970,226¥584,607¥472,812¥1,057,419

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

As of March 31,

Pledged securities
Pledged receivables
Pledged merchandise
Pledged real estate
OthersSubtotal

2013

¥

2014
̶
̶

¥

̶
̶

̶

̶

656,258

715,013̶̶656,258

715,013

Guaranteed

41,07967,239Credit272,887

275,165

Total¥970,226¥1,057,419

92 Sony Financial Holdings Inc. Financial Data Book 2014

Performance Indicators of Sony Bank (Non-consolidated)

3- 04 Balance of loans by industry(Millions of yen)

2013

2014

As of March 31,

BalanceComposition(%)

BalanceComposition(%)

Individual¥866,830

89.34%¥ 955,161

90.33%

Corporation

9.67

103,395

10.66

102,257

Manufacturing industries

37,9193.91

39,872

3.77

Construction

1,670

0.17

1,970

0.19

Electricity, gas, heat and water supplies

1,001

0.10

1,000

0.09

Information and telecommunications

1,996

0.21

620

0.06

Transportation/Mail services

10,661

1.10

9,921

0.94

Wholesalers/Retailers

13,876

1.43

12,156

1.15

Financial services/Insurance

8,276

0.85

10,933

1.03

Real estate/Goods leasing services

22,1772.29

20,814

1.97

Various service

2,777

0.29

1,931

0.18

Local government

3,039

Total

¥970,2260.31
100.00%3,035¥1,057,419

0.29
100.00%3- 05 Loan-deposit ratio: year-end and annual average
(%)

2013
For the years ended March 31,

Domestic
divisionInternational
division

At the year-end

66.02%

0.73%

Annual average

62.04

0.58

2014
Total

Domestic
divisionInternational
division

52.23%

69.11%

1.12%

55.94%

49.38

68.42

1.00

54.65

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,

2013

2014

Allowance for loan losses balance at the year-end¥1,641¥1,527

6(114)

Allowance for loan losses increase (decrease) during the year

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

For the years ended March 31,

Total

2013

2014

¥11

¥3

Sony Financial Holdings Inc. Financial Data Book 2014 93

Performance Indicators of Sony Bank (Non-consolidated)

4 Status of Operation (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)2013

As of March 31,

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

Unspecified
term

Total

Japanese government bonds¥¥194,000¥ 24,034¥ 21,739¥ 35,857¥12,926¥ 76,310¥23,131

Japanese municipal bonds

̶

1,511

3,826

2,554

53,359̶̶

61,251

Japanese corporate bonds

40,15387,98910,991

10,30652,541418

̶202,401

̶

̶

̶

̶

̶

̶

2,050

2,050

Japanese stocks
Other securities
Of which, foreign bonds
OthersTotal

̶96,527

198,399

115,996

17,684

13,457

̶

7,076

449,142

96,527

198,399

115,996

17,684

13,457̶̶

442,065

̶

̶

̶

̶

̶

̶

7,076

7,076

¥160,715¥309,639¥166,672¥43,472¥195,669¥23,550¥9,127¥908,847(Millions of yen)2014

As of March 31,

Less than
1 yearOver 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

Japanese government bonds¥ 20,547¥

4,013¥ 30,242¥ 3,147¥ 19,290¥19,581

Unspecified
term

Total

¥

¥ 96,823

̶Japanese municipal bonds

500

2,719

̶

18,31835,231

̶̶

56,770Japanese corporate bonds

58,101

31,676

8,264

19,407

41,713360

̶

159,524

Japanese stocks

̶

̶

̶

̶

̶

̶

2,050

2,050

Other securities

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

Of which, foreign bonds
OthersTotal

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

2013

2014

For the years ended March 31,

Domestic
divisionInternational
division

Total

Domestic
divisionInternational
division

Japanese government bonds¥213,606¥

̶¥213,606¥117,504¥

Japanese municipal bonds

51,769

̶

51,769Japanese corporate bonds

Total

̶

¥117,504

55,749̶

55,749179,579

252,032̶

252,032

179,579̶

Japanese stocks

3,722

̶

3,722

2,050

̶

2,050

Other securities

8,564

400,021408,586

6,555

443,006

449,562̶

400,021400,021̶

443,006

443,006

8,564

̶

8,564

6,555

̶

6,555

¥529,695¥400,021¥929,716¥361,440¥443,006¥804,446

Of which, foreign bonds
OthersTotal

94 Sony Financial Holdings Inc. Financial Data Book 2014

Performance Indicators of Sony Bank (Non-consolidated)

Year-end balance(Millions of yen)

2013

2014

As of March 31,

Domestic
divisionInternational
division

Total

Domestic
divisionInternational
division̶Japanese government bonds¥194,000¥

Japanese municipal bonds¥194,000¥ 96,823¥

61,251

̶61,251

56,770̶Japanese corporate bonds

56,770202,401̶

202,401

159,524

̶

159,524

Japanese stocks

2,050

̶

2,050

2,050

̶

2,050

Other securities

7,076

442,065

449,1423,561

455,080

458,641̶

442,065442,065̶

455,080455,080

7,076

̶

7,076

3,561

̶

3,561

¥466,781¥442,065¥908,847¥318,731¥455,080¥773,811

Of which, foreign bonds
Others
Total

̶

Total

¥ 96,823

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

2013

2014

For the years ended March 31,

Domestic
divisionInternational
division

Domestic
divisionInternational
division

Total

At the year-end

31.86%

112.64%48.92%

20.91%

124.31%40.94%

Annual average

36.78

107.07

51.26

24.68

117.81

43.71

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 2014 95

Sony Life MCEVMCEV Results for Sony Life
1 MCEV Results
1- 01 MCEV resultsSony Life’s MCEV as of March 31, 2014 increased ¥156.6 billion due to the contribution of new business, the change in actuarial
assumptions, the increase in interest rates and other factors.The breakdown is shown in the table below.
(Billions of yen)

As of March 31,

MCEV

2013

2014

Change¥156.6¥1,064.7¥1,221.3

Adjusted net worth

770.8

722.1

(48.7)

Value of existing business

293.9

499.1

205.3

41.6

55.2

13.6

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 decreased by ¥48.7 billion, primarily because of the decrease in unrealized gain on
held-to-maturity securities caused by the increase in interest rates. The breakdown is shown in the table below.
(Billions of yen)

As of March 31,

2013

2014

ChangeAdjusted net worth¥ 770.8¥ 722.1¥ (48.7)

Total net assets

342.3

369.2

26.9

Reserve for price fluctuations

32.3

41.6

9.3

Contingency reserve

59.6

63.7

4.1

Reserve for possible loan losses

0.0

0.0

0.0

Unrealized gains or losses on held-to-maturity securities

551.7

430.3

(121.4)

Unrealized gains or losses on land and buildings

19.4

19.4

0.0
1.8

Unfunded pension liabilities

(5.0)

(3.2)

Intangible fixed assets(26.1)(23.9)

2.2

Tax effect equivalent of above seven items(193.8)(162.5)

31.3

(9.6)

(12.5)(2.9)

Valuation gain or loss on subsidiaries and affiliated companies(Billions of yen)

As of March 31,

2013

2014

ChangeAdjusted net worth¥770.8¥722.1¥ (48.7)

Free surplus

418.5

566.2

147.7

Required capital

352.3

156.0

(196.3)

Sony Life set its required capital as the larger of the amount of capital required for a solvency margin ratio of 200% or the amount of
capital to cover risks based on an internal model based on economic value. The decrease in required capital at the end of the current fiscal
year is due to a decrease in the economic value of technical provisions that mainly resulted from the increase in interest rates. Please refer
to Section 3-07 for the method used to calculate required capital.

96 Sony Financial Holdings Inc. Financial Data Book 2014

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 increased ¥205.3 billion due to the increase in interest rates, thecontribution of new business, the change in actuarial assumptions and other factors. The breakdown is shown in the table below.
(Billions of yen)

As of March 31,

2013

2014

ChangeValue of existing business¥ 293.9¥ 499.1¥205.3Present value of certainty-equivalent profit

633.2

869.4

236.2

Time value of options and guarantees(111.2)(123.1)(11.9)

Frictional costs(13.9)(9.2)

4.7

Cost of non-hedgeable risks(214.2)(237.9)(23.7)

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, 2014,
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, 2014 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 2014, actual investment gains and losses during the fiscal year ended March 31, 2014 are reflected. New business value
increased by ¥13.6 billion primarily because of improved profitability caused primarily by the revision of insurance premium rates and theincrease in interest rates. A breakdown of the value of new business is as follows:(Billions of yen)

As of March 31,

2013

2014

ChangeValue of new business¥ 41.6¥ 55.2¥13.6

Present value of certainty-equivalent profit

74.1

84.9

10.8

Time value of options and guarantees(12.4)(9.4)

3.0

Frictional costs

(0.2)

(0.3)

(0.0)

Cost of non-hedgeable risks(19.9)(20.0)(0.1)

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,

2013

Value of new business¥

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

41.6

2014

¥

Change55.2¥ 13.6

1,187.5

1,069.7(117.7)

3.5%

5.2%

1.7 points

Relationships between the annualized premiums from new policies and the present value of premium income from new business for the
fiscal year ended March 31, 2014 were as follows:(Billions of yen)

As of March 31,

2013

2014

ChangeNew business single premium¥118.4¥165.5¥ 47.1

103.9

84.8

(19.1)

10.29

10.66

0.38

Annualized premiums from level premium new business*
Average annualization multiplier*2

1*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 ata time. 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.

Sony Financial Holdings Inc. Financial Data Book 2014 97

Sony Life MCEV

1- 06 Reconciliation analysis from MCEV at the end of the prior year
The table below shows the reconciliation analysis of MCEV as of March 31, 2014, from MCEV as of March 31, 2013. The format of thetable is in line with the format prescribed by the European Insurance CFO Forum Market Consistent Embedded Value Principles©*(MCEV Principles).
* Copyright© Stichting CFO Forum Foundation 2008
(Billions of yen)

Opening MCEV (MCEV as of March 31, 2013)

Free surplus

Required capital

Value of existing
business¥418.5¥ 352.3¥293.9MCEV¥1,064.7

Opening adjustments(13.3)

̶̶

(13.3)

Adjusted opening MCEV

405.2

352.3

293.9

1,051.4

New business value

̶

̶

55.2

55.2

Expected existing business contribution (risk-free rate)

0.3

0.2

13.1

13.5

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

0.9

0.7

6.7

8.3

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

4.4(31.3)26.8

̶̶

(196.3)

44.7
(2.2)
35.5
0.6
135.7
69.0
0.6
205.3

Of which, on new businessTotal MCEV earnings(44.7)
36.6
(0.5)
30.6
72.4
89.5
(0.9)
161.0

Closing adjustments

̶

̶

̶

̶

¥566.2¥156.0¥499.1¥1,221.3

Experience variances
Assumption changes
Other operating variance
Operating MCEV earnings
Economic variances
Other non-operating variance

Closing MCEV (MCEV as of March 31, 2014)(34.0)
0.5(30.6)(94.5)(101.5)
(0.3)

̶

0.5
35.5
0.6
113.6
57.0
(0.7)
169.9

(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, 2014. 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, 2014 of the time value of options and guarantees and thecost of non-hedgeable risks, in addition to the release of the expected existing business contributions at a risk-free rate from the opening
MCEV (as of March 31, 2013).
(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, 2014 was 0.272%, 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 prior year-end and the transfer of profit that wascalculated 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, 2014 under the MCEV calculation as of March 31, 2013, and of the differences between actual policies in force as ofMarch 31, 2014, and those that were projected to be in force on March 31, 2013 using persistency assumptions.

98 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life MCEV

(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 improvements in mortality rates, lapse and surrender rates, and operating expense rates increased the value of existing business.
(8) Other operating varianceThis represents the impact of improvements and corrections of the model used in calculating MCEV, including the impact from the revisionof risk measure for interest rate risk in Japanese yen. Please refer to Section 3-07 (1) for the revision of risk measure for interest rate risk inJapanese yen.
(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, 2013 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,
2014 under MCEV as of March 31, 2013.
The major reasons for increases in the value of existing business include an update of economic scenarios due to the change in themarket environment such as the changes in interest rates and volatilities, accounting for an increase in the present value of certaintyequivalent profit by ¥65.4 billion, a decrease in the time value of options and guarantees by ¥17.0 billion, a decrease in the frictional cost by¥5.2 billion and a decrease in the cost of non-hedgeable risks by ¥1.3 billion. Another factor is an increase in expenses tied to the increase
in inflation swap rates, accounting for a decrease in the value of existing business by ¥20.0 billion. The major reason for the decrease in theadjusted net worth was the decrease in prices of government bonds caused by the increase in interest rates. Overall MCEV changes are
disaggregated into an increase by ¥76.9 billion as a result of the increase in interest rates and a decrease by ¥20.0 billion as a result of theincrease in inflation swap rates.
(11) Other non-operating varianceThis figure shows the effect of the abolition of the reconstruction special corporate tax described in Section 2-03 (6).
(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¥1,221.3¥

̶̶%Interest rates

100bp decrease

1,003.4(217.9)(18%)

100bp increase

1,256.2

34.9

3%

Swap rates

1,393.8

172.5

14%

Stock / Real estate market value

10% decrease

1,204.8(16.5)(1%)

Stock / Real estate implied volatility

25% increase

1,209.7(11.6)(1%)

Interest swaption implied volatility

25% increase

1,202.7(18.6)(2%)

Maintenance expenses

10% decrease

1,240.7

19.4

2%

Lapse and surrender rates

× 0.9

1,236.4

15.1

1%

Mortality rates

Death protection products × 0.95

1,264.5

43.2

4%

Third-sector and annuity products × 0.95

1,216.0

(5.3)

(0%)

Morbidity rates

× 0.95

1,259.6

38.3

3%

Required capital

Regulatory minimum

1,225.3

4.0

0%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

100bp decrease¥ 957.1

100bp increase(754.9)Stock / Real estate market value

10% decrease(10.7)

Stock / Real estate implied volatility

25% increase(0.9)

Sony Financial Holdings Inc. Financial Data Book 2014 99

Sony Life MCEV

Sensitivity of new business value(Billions of yen)
New Business
Value

Assumption

Change in assumption

Base

No change¥ 55.2

Interest rates

100bp decrease
100bp increase

Stock / Real estate market value

Change in amount¥Rate of change̶̶%(21.6)(76.8)(139%)

98.6

43.4

79%

Swap rates

65.1

10.0

18%

10% decrease

55.2

(0.0)

(0%)

Stock / Real estate implied volatility

25% increase

54.7

(0.5)

(1%)

Interest swaption implied volatility

25% increase

53.4

(1.7)

(3%)

Maintenance expenses

10% decrease

56.8

1.6

3%

Lapse and surrender rates

× 0.9

60.5

5.3

10%

Mortality rates

Death protection products × 0.95

58.5

3.3

6%

Third sector and annuity products × 0.95

54.9

(0.2)

(0%)

Morbidity rates

× 0.95

56.9

1.7

3%

Required capital

Regulatory minimum

55.2

0.0

0%

(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 2014, and the impact if the 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 to be purchased in the future as existing bonds mature, and the investment returns on stocks, real estate, and other assets change.
Here, the sensitivity scenarios were made so that the parameters related to interest rate volatility were equal to those derived for the basecase. Only the parameters related to the interest rate term structure were altered 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 2014. Adjusted
net worth would change as the market value of stock and real estate changes. At the same time, the value of existing business wouldchange as the amount of assets changes.
(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 the third-sector insurance and 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 statutory minimum level, which is a solvency
margin ratio of 200%.

100 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life MCEV

(10) Other
The following points should be noted regarding 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 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 2014.
(1) Risk-free rate
Sony Life has used the JGB yields and the U.S. Treasury yields as of the end of March 2014 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

2013

2014

2013

2014

1 year

0.06%

0.08%

̶%

0.11%

5 year

0.13

0.20

̶

1.72

10 year

0.55

0.64

̶

2.72

20 year

1.40

1.50

̶

3.37

30 year

1.54

1.70

̶

3.56

40 year

1.64

1.78

̶

̶

Term

The swap rate 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.
(%)

As of the end of March,

Japanese yen

U.S. dollar

2014

2014

Term
1 year

0.18%

0.27%

5 year0.33

1.80

10 year

0.83

2.84

20 year

1.61

3.43

30 year

1.84

3.54

40 year

1.96

3.56

50 year̶

3.54Sony Life has not added 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 2014. 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 2014 101

Sony Life MCEV

The implied volatilities of the interest swaption used in Sony Life’s estimation are as follows:(%)

As of the end of March,

2013

Term of swap (in years)

Term of option (in years)

1 year
5 years
5 years
5 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
10 years
10 years
15 years
15 years
15 years
15 years
15 years
15 years
20 years
20 years
20 years
20 years
20 years
20 years

1 year
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years

Japanese yen

U.S. dollarEuro

UK pound

93.9%
71.8
45.0
35.9
27.0
26.0
27.7
47.2
30.9
27.3
23.6
25.7
27.4
34.8
27.6
25.8
24.8
25.9
27.2
31.6
27.5
26.4
25.0
26.0
26.0

64.5%
46.4
30.6
26.2
22.8
21.2
19.3
34.2
25.9
24.6
22.3
21.1
19.7
36.3
24.0
22.5
21.4
19.4
18.7
26.7
23.1
22.8
21.4
19.4
19.0

95.9%
50.4
31.1
26.1
22.8
23.2
24.2
36.1
27.6
25.2
23.6
23.9
23.7
30.7
26.4
24.6
23.1
22.7
21.5
29.7
26.2
24.3
22.6
21.6
19.9

67.5%
48.2
27.3
21.9
18.5
16.8
16.1
33.4
22.9
20.0
17.5
15.5
14.8
26.7
20.9
18.7
16.9
14.9
14.9
24.1
19.9
18.0
16.4
15.1
13.4
(%)

As of the end of March,

2014

Term of swap (in years)

Term of option (in years)

1 year
5 years
5 years
5 years
5 years
5 years
5 years
10 years
10 years
10 years
10 years
10 years
10 years
15 years
15 years
15 years
15 years
15 years
15 years
20 years
20 years
20 years
20 years
20 years
20 years

1 year
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years
1 year
5 years
7 years
10 years
15 years
20 years

102 Sony Financial Holdings Inc. Financial Data Book 2014

Japanese yen

U.S. dollar

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

Euro

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

UK pound

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

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.
For UK stocks as of the end of March 2013, Sony Life has assumed that forward implied volatilities in the 6th year and beyond are equal
to those in the 5th year as reliable data were not available.
Implied volatilities used for the estimation are as follows:
(%)

2013
Foreign exchange

As of the end of March,

Term (in years)
1 year
5 years
10 years

StocksU.S. dollar /Japanese yen

Euro /
Japanese yen

UK pound /Japanese yen

Japan TOPIX

U.S. S&P

Euro SX5E

UK FTSE

11.5%
12.9
16.0

13.7%
14.6
17.5

11.6%
13.1
16.3

18.5%
18.7
21.0

18.0%
22.3
25.6

22.7%
23.3
24.0

17.3%
21.3
̶
(%)

2014
Foreign exchange

As of the end of March,

Term (in years)
1 year
5 years
10 years

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

(4) Correlation factor
Sony Life has calculated correlation factors from the monthly return of each index for a period of five years from April 2009 to the end of
March 2014 as there is no market-consistent data for correlation factors.
2013

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

UK
U.S.
pound /
Euro /UK pound dollar /Interest Japanese Japanese Japanese
yen
yen
yen
rate 1YJapaneseyenInterest
rate 1Y

U.S.
dollarInterest
rate 1Y

Euro
Interest
rate 1Y

1.00
0.54
0.20
0.51
0.26
0.10
0.38
0.18
0.12
0.08
0.003

0.54
1.00
0.59
0.82
0.59
0.32
0.62
0.40
0.23
0.19
0.21

0.20
0.59
1.00
0.60
0.33
0.58
0.55
0.51
0.54
0.53
0.52

0.51
0.82
0.60
1.00
0.34
0.25
0.56
0.36
0.32
0.23
0.21

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
(0.003)(0.11)

TOPIX

S&P

SX5E

FTSE

0.38
0.62
0.55
0.56
0.72
0.77
1.00
0.61
0.42
0.36
0.28

0.18
0.40
0.51
0.36
0.55
0.67
0.61
1.00
0.72
0.69
0.69

0.12
0.23
0.54
0.32
0.18
0.58
0.42
0.72
1.00
0.88
0.90

0.08
0.19
0.53
0.23
0.16
0.51
0.36
0.69
0.88
1.00
0.88

0.003
0.21
0.52
0.21
0.19
0.52
0.28
0.69
0.90
0.88
1.00

UK
U.S.
pound /
Euro /
dollar /Japanese Japanese Japanese
yen
yen
yen

TOPIX

S&P

SX5E

FTSE

(0.01)
0.35
0.22
0.10
0.61
0.62
0.66
1.00
0.54
0.53
0.47

(0.09) (0.15)
0.11
0.12
0.39
0.47
0.02 (0.003)
0.18
0.19
0.59
0.52
0.40
0.37
0.54
0.53
1.00
0.81
0.81
1.00
0.89
0.85

0.26
0.59
0.33
0.34
1.00
0.61
0.72
0.55
0.18
0.16
0.19

0.10
0.32
0.58
0.25
0.61
1.00
0.77
0.67
0.58
0.51
0.52
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

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

0.04
0.24
0.33
0.18
0.67
0.82
1.00
0.66
0.40
0.37
0.23

(0.22)
0.11
0.30(0.11)
0.16
0.50
0.23
0.47
0.89
0.85
1.00

Sony Financial Holdings Inc. Financial Data Book 2014 103

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 2014.
The table below shows foreign exchange rates of major currencies.
(Yen)

As of the end of March,

2013

2014

U.S. dollar / Yen¥ 94.05¥102.92

Euro / Yen

120.73141.65UK pound / Yen

143.16171.31

2- 02 Future asset allocation(1) Asset allocation in the general accountSegments accounting is conducted for individual life insurance and individual annuity based on the classifications of the non-participatingproduct segment, semi-participating product segment, interest rate-sensitive whole life insurance segment and foreign currencydenominated 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 2014 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 2014 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 2014. 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 experiences 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 the following 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 between interest rates or account values to the amount of minimum guarantee andthe lapse and surrender rates regarding products other than variable insurance, Sony Life has developed dynamic surrender rates by referringto the experience with similar products and domestic and overseas trends of practice. Going forward, Sony Life will strive to improve dynamic
surrender rates for the relevant products by carefully monitoring experience data and referring to experience 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 renewal was reflected in a
simplified manner.
(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 for system revisions, whose amountis ¥1.4 billion (FY2013 base).

104 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life MCEVMCEV 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 its parent company, Sony Financial Holdings Inc., unit cost
includes management administration charges payable to its parent company. In relation to its 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
“The Law to Revise the Income Tax, etc.,” was promulgated on March 31, 2014. As a result, reconstruction special corporate tax was
abolished from the fiscal years beginning on or after April 1, 2014, and the effective tax rate is set at 33.33% in the fiscal year 2013, and30.78% in and after the fiscal year 2014.
(7) Consumption tax rate
Based on “The Bill to Amend the Consumption Tax Law for Reforming Tax System to Secure Revenue to Fund the Cost of Social Security,”
promulgated on August 22, 2012, future expenses increased, reflecting the increase in the consumption tax rate to 8% at April 1, 2014 and
10% at October 1, 2015.
(8) Inflation rate
Inflation rates were set as in the table below by referring to inflation swap rates and removing the effect of the increase in the consumption
tax rate.
(%)
Projection Year

Inflation Rate

2014

0.86%

2015

0.60

2016

0.17

2017

0.59

2018

0.71

2019

0.74

2020

0.85

2021

2.12

2022

1.33

2023 and later

1.45

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 net asset value minus intangible fixed assets, and Insurance Business Law Article 113
deferred assets, multiplied by the participation rate, which is ¥(0.5) billion.
• Other companies are valued at book value under Japanese GAAP, which is ¥4.0 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, 2014, 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 2014 105

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 statutory required minimum level or the capital required to meet the internal
objectives in terms of marketing or risk management purposes, or to achieve the company’s targeted credit rating.
Sony Life set its required capital as the larger of the amount of capital required for the current solvency margin ratio of 200% or theamount of capital to cover risks based on the internal model. The latter is larger as of the end of March 2014.
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 2014 was ¥664.3 billion (after tax), reflecting the revision ofrisk measure for interest rate risk in Japanese yen as described in (1) below. The effective tax rate used to adjust to the after-tax basis is30.78%.
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 capture enough risk amount at a 99.5% confidence level.
For interest rate risk in Japanese yen, Sony Life revised the risk measure at the end of March 2014, having observed significant changes
in ultra-long term interest rates during the year 2013. More specifically, Sony Life revised the previous methodology which measured theshock by dropping interest rates by at least 1% for all maturities (parallel shift) and introduced principal component analysis, where yield
curve changes are disaggregated into three components—parallel shift, twist and butterfly—and the yield curve is shocked by each component, to capture the risk of yield curve changes more precisely. The risk amount would be larger than the previous risk measure whenultra-long term interest rates are high and there is room for yield curve flattening, while the risk amount would be smaller than the previous
risk measure when ultra-long term interest rates are sufficiently low and there is little room for further decline in yield curve. Before thisrevision, the solvency risk capital on an economic value basis would be ¥697.5 billion in total (after tax) as of the end of March 2014.
For other risks, major stress parameters different from QIS5 include 45% for listed stocks, 100% for subsidiaries and affiliatedcompanies’ 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 lapse up / down stressparameters for the Health module under QIS5 are 20%. Because it makes stress parameters extremely lower only for A&H products, Sony
Life has kept 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.

106 Sony Financial Holdings Inc. Financial Data Book 2014

Sony Life MCEV

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.

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 between interest rates or accountvalues to the amount of minimum guarantee and the lapse and surrender rates regarding products other than variable insurance, Sony
Life has developed dynamic surrender rates by referring to the experience with similar products and domestic and overseas trends ofpractice. Going forward, Sony Life will strive to improve dynamic surrender rates for the relevant products by carefully monitoring
experiential data and referring to experience with similar products and trends of practice in Japan and other 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.
• 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, 2014” (http://www.
sonyfh.co.jp/en)

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Sony Life MCEV

4 Overview of MCEV
4- 01 What is EV?
Embedded value (EV) is an indicator used to evaluate the corporate value of a life insurance business. Many insurance companies
in Europe disclose EV as part of their financial reports and use EV as an internal management tool. Under Japanese GAAP for life
insurance companies, the balance sheets do not indicate the present value of future profits from existing business, while EV
indicates, the present value of future profits from existing business along with total net assets of an insurance company.
The CFO Forum, formed by the Chief Financial Officers (CFOs) of major European insurance companies published the European
Embedded Value Principles (EEV Principles) in May 2004. This led to the disclosure by many leading European insurers of EEV
based on market consistent methods.
However, as the EEV Principles allow various calculation methodologies, the CFO Forum published the MCEV Principles in June2008 in order to make EV information more effective and appropriate for investors by streamlining MCEV disclosure standards forinternational use.
MCEV represents the present value of the current and future distributable profits to shareholders generated from assets allocatedto the covered business after sufficient allowance for the aggregate risks in the covered business. MCEV is calculated as the sumof 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)

Sony Life concludes policies with new customers each year, but MCEV represents the future value of net assets and existing
business on a certain balance sheet date, and does not include the value of new business it may write in the future.

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 unrealized gains or losses on held-to-maturity securities and other items, minus intangible fixed assets and other items, and adjusting forthe amount of tax effect. The value of existing business is the present value of certainty-equivalent profit, namely the present valueof profit based on future cash flows generated from the covered business, minus the time value of options and guarantees, the costof non-hedgeable risks and other items, which approximately equates to the value of statutory policy reserves minus policy reservebased on market value (after tax).

Correlation between balance sheets (under Japanese GAAP) and MCEVJapanese GAAPMCEVMarket value-based
policy reserve

Statutory (book value)policy reserve
Statutory
asset

Marketvalue-based
asset
Net assets

Value of existing businessNet assets
Adjusted net worth
Unrealized gains or losses on heldto-maturity securities and other items

108 Sony Financial Holdings Inc. Financial Data Book 2014

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. Sony Life’s risk amount based on economic value stood at ¥664.3 billion (after tax) as of March 31, 2014.
The breakdown of the risk amount is as follows:(Billions of yen)

2013

2014 2

Insurance risk

¥ 605.6¥ 654.5

Market-related risk

289.9
234.2
26.0
2.3
(262.5)
661.3

240.0
180.9
26.3
1.3
(257.8)664.3

As of March 3 1,

Of which interest rate risk 1
Operational risk
Counter party risk
Variance effectRisk amount based on economic value
1
2

Interest rate risk is calculated as the amount before excluding the variance effect within market-related risk.
Sony Life revised its method of measuring interest rate risk in Japanese yen on March 31, 2014. For details, please see 3-07 (1).

As of March 3 1,

MCEV

2013

2014

¥1,064.7¥1,221.3

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 will remain committed to ensuring its financial soundness through maintaining MCEV at an adequate level versus risk amountbased on economic value with a view to realizing the constant and sustainable growth of its corporate value.
* Risk amount based on economic value is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar but modified model basedon the EU Solvency II (QIS5) standard method.

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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.

• The expected rate of future variability
embedded in current option prices, andrepresents the expected value of the market
against the price fluctuation.

• 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.

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.

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.

110 Sony Financial Holdings Inc. Financial Data Book 2014

Risk-free rate
• The reference rate defined in the MCEV
Principles. The MCEV Principles state that itshould be the swap rate to the currency ofthe 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 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 2014 111

Sony Financial Group