November 15, 2010
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2010
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary (Year-on-Year Comparison)

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Risk-Monitored Loans

P.6

6. Securities

P.6

7. Solvency Margin Ratio

P.7

1. Balance Sheets(Millions of yen)
As of September 30, 2010

As of March 31, 2010

Assets:Cash and deposits

1,812

3,507

Securities

80,87773,234

Tangible fixed assets414

325

Intangible fixed assets

2,575

1,912

Other assets

12,084

13,553

Accounts receivable

7,622

9,326

Others

4,462

4,226

6,202

5,807

103,967

98,34081,75575,851

Reserve for outstanding losses

19,392

17,725

Underwriting reserves

62,362

58,125

5,026

5,809

833

565

4,193

5,243

Reserve for employees’ retirement benefits

592

552

Reserve for directors’ retirement benefits

31

28

Reserve for employees’ bonuses

641

589

Reserve for price fluctuations and others

35

27

35

27

88,08282,858

Common stock

20,00020,000Capital surplus20,000

20,000Retained deficits(24,152)(24,543)

Total shareholders’ equity

15,84715,456

Net unrealized gains on othersecurities, net of taxes

38

25

Total valuation and translation
adjustments

38

25

Total Net Assets

15,885

15,482

Total Liabilities and Net Assets

103,967

98,340

Deferred tax assets
Total Assets
Liabilities:
Underwriting reserves

Other liabilities
Income taxes payable

OthersReserve for price fluctuations
Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments22. Statements of Income(Millions of yen)
For the six months ended
September 30, 2009
Ordinary Revenues

For the six months ended
September 30, 2010

33,993

37,107

33,63636,722

33,62036,707

15

14

341

371

342

383

7-

(15)

(14)

15

13

32,45536,431

Underwriting expenses

24,56627,944

Net losses paid

16,181

19,031

Loss adjustment expenses

1,972

2,343

627

665

Provision for reserve foroutstanding losses

1,086

1,666

Provision for underwriting reserves

4,698

4,236

13-

12

-

Operating, general andadministrative expenses

7,869

8,456

Other ordinary expenses

629

1,537

675

2843

Losses on sale or disposal of fixed assets

2135

Provision for reserve for pricefluctuations and others

7878

Income Before Income Taxes

1,508

632

Income Taxes –current

1,102643

Income Taxes –deferred

(627)

(402)

Total Income Taxes

474

241

1,034

390

Underwriting income
Net premiums written
Interest and dividends ondeposits of premiums
Investment income
Interest income and dividends
Gains on sale of securities
Transfer to interest and dividends
on deposits of premiums

Other ordinary income
Ordinary Expenses

Net commissions and brokerage fees

Investment expensesLosses on sale of securities

Ordinary Profit
Extraordinary Losses

Provision for reserve for pricefluctuations

Net Income33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the six months ended For the six months ended
September 30, 2009
September 30, 2010

Change(Amount)

Change(%)

Gross direct premiums written

33,44836,406

2,957

8.8 %

(Direct premiums written)

33,44836,406

2,957

8.8

33,63636,722

3,085

9.2

33,62036,7073,086

9.2

Underwriting expenses

24,56627,944

3,378

13.8

Net losses paid

16,18119,031

2,849

17.6

Loss adjustment expenses

1,972

2,343

371

18.9

627

665

38

6.1

341

371

30

8.9

342

383

41

12.0

7－

(7)

(100.0)13－(13)(100.0)Losses on sale of securities

12－

(12)

(100.0)Operating, general and administrative expenses

7,869

8,456

586

7.5

(Operating, general and administrative expenses
related to underwriting)

7,831

8,417

585

7.5

9(16)

ᇞ 25(278.3)

1,537

675

ᇞ 861(56.0)

1,238

360

ᇞ 877(70.9)

Extraordinary Gains-－－－Extraordinary Losses

2843

1555.5

(28)

(43)

(15)

－

Income before income taxes

1,508632(876)(58.1)

Income taxes -current

1,102643(458)(41.6)

Income taxes –deferred

(627)

(402)

225－

474

241(232)(49.1)Net Income

1,034

390(643)(62.2)

RatiosNet loss ratio

54.0%

58.2%

Net expense ratio

25.2%

24.7%

Underwriting income
Net premiums written

Ordinary Income (expenses)

Net commissions and brokerage fees

Investment income
Interest income and dividends
Gains on sale of securities
Investment expenses

Other ordinary income (expenses), net
Ordinary profit(Underwriting profit)
Extraordinary gains(losses)

Extraordinary gains (losses), net

Total income taxes

Notes:

1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting)± Other income (expenses).
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Ratios are calculated as follows.
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio =(Net commissions and brokerage fees+ Operating, general and administrative expenses / Net premiums written x 100(Operating, general and administrative expenses is the amount related to underwriting)44. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the six months ended
September 30, 2009
Amount

For the six months ended
September 30, 2010

Composition YoY Change%

AmountComposition YoY Change%%%

Fire

137

0.4

(16.9)

71

0.2(47.6)

Marine－－－－－－

Personal accident

3,442

10.3

4.8

3,551

9.8

3.1Voluntary automobile

29,86889.3

11.7

32,78390.0

9.8－－－－－－

33,448

100.0

10.8

36,406100.0

8.8

Compulsory
automobile liability

Total
Net Premiums Written(Millions of yen)

For the six months ended
September 30, 2010

For the six months ended
September 30, 2009

AmountComposition YoY Change%

AmountComposition YoY Change%%

%

Fire

60.0(23.0)

30.0(44.0)

Marine70.0(62.3)

60.0(6.0)

Personal accident

3,563

10.6

3.9

3,679

10.0

3.3

Voluntary automobile

29,75288.5

11.7

32,64888.99.7

Compulsory
automobile liability

291

0.9

9.5

369

1.0

26.8

Total

33,620

100.0

10.8

36,707100.0

9.2

Net Losses Paid(Millions of yen)

For the six months ended
September 30, 2009
Amount

For the six months ended
September 30, 2010

YoY Change Net loss ratio%

AmountYoY Change Net loss ratio

%%

%

Fire0

1.5

76.0

0(26.4)

116.1

Marine1(82.3)

20.8

7

393.5

109.4

Personal accident

705

13.9

22.0

776

10.1

24.0

15,216

14.8

57.5

17,92717.8

61.8

Compulsory
automobile liability

258

7.6

88.7319

23.9

86.7

Total

16,181

14.6

54.0

19,031

17.6

58.2

Voluntary automobile

55. Risk-Monitored Loans
None

6. Securities
1. Held-to-maturity securities(Millions of yen)
As of September 30, 2010

Fair value is higher
than balance sheet
amountFair value is lower
than balance sheet
amountAs of March 31, 2010

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Domestic
bonds

62,82364,464

1,641

50,936

51,543607

Foreignsecurities

695

712

17598

616

18

Subtotal

63,51865,176

1,658

51,53452,159

625

Domestic
bonds

－－－

3,526

3,476

(50)

Foreignsecurities

302

302

(0)

399

392(6)

302

302
65,478

(0)
1,657

3,926
55,4603,869
56,028(56)
568

Subtotal
Total

63,820

2. Available-for-sale securities(Millions of yen)
As of September 30, 2010

As of March 31, 2010

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
Domesticamount is higher thanbonds
acquisition cost

7,974

7,884

89

10,063

9,983

79

Domestic
bonds

4,735

4,765

(30)

2,565

2,605(39)

4,346
9,082
17,057

4,346
9,112
16,997

－
(30)
59

5,144
7,710
17,773

5,144
7,750
17,733－(39)
40

Balance sheet
amount is lower thanacquisiton cost
Total

OthersSubtotal

6

7. Solvency Margin Ratio(Millions of yen)
As of September 30, 2010

As of March 31, 2010

(A) Total solvency margin

28,43727,444

Capital or treasury

15,84715,456

Reserve for price fluctuations

3527

Contingency reserve

76

Catastrophe reserve

12,493

11,918Reserve for possible loan losses--

Net unrealized gains on other securities(before subtracting tax effects)

53

36--

Net unrealized gains on real estate
Excess refund reserve
Subordinated debt
Deductible items
Other(B) Total risk

(R1+R2)2+(R3+R4)2+R5+R6

5,629

5,388

Ordinary insurance risk（Ｒ1）

4,834

4,599

Third-sector insurance risks（Ｒ 2）00

Assumed interest rate risks（Ｒ3）11

10Asset management risks（Ｒ4）

256

288

Business management risks（Ｒ5）

171

165

Major catastrophe risk（Ｒ6）

615

614

1,010.3 ％1,018.5 ％Solvency margin ratio(C)[(A)／{(B)×1/2}]×100

Note: The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Insurance Business Law Enforcement Regulations
and Ministry of Finance Announcement No. 50 (1996).

<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 thevalue of the assets they hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The solvency margin ratio (item (C) in the table above) is
an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital andother reserves (in other words, the total solvency margin: as indicated by (A) above).
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks.
(1) Insurance underwriting risks(Ordinary insurance risks)(Third-sector insurance risks)：Risks outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risks)(2) Assumed interest rate risks：Risks that actual investment yields will fall below the investment yield assumed when calculating premiums(3) Asset management risks： Risks arising from such factors as unexpectedly large fluctuations in prices on owned securities and other assets(4) Business management risks：Unexpected risks to business management other than (1) through (3) above and (5)(5) Major catastrophe risks：Risks arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)

A non-life insurer’s ability to pay (total solvency margin), as indicated by such factors as its capital and reserves is the total of the insurer’s net assets (excluding
the amount of expected outflow from the company), reserves (such as the reserve for price fluctuations and special catastrophe reserve) and a portion of its net
unrealized gain on real estate.
The 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.

7