Consolidated Financial Summary (Japanese GAAP)
for the Nine Months Ended December 31, 2015
February 12, 2016
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the Nine months ended December 31, 2015
(1) Operating results
Ordinary Revenues

Profit Attributable to Owners of
the Parent

Ordinary Profit

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,036,134

1.4

57,450(24.3)

38,224(24.3)

1,021,872(2.5)

75,881

23.2

50,52243.0

For the nine months ended
December 31, 2015
For the nine months ended
December 31, 2014
Note: Comprehensive Income:For the nine months ended December 31, 2015: ¥40,268 million:
For the nine months ended December 31, 2014: ¥90,051 million:

Net Income per
Share(Fully Diluted)

Net Income per
Share
Yen

For the nine months ended
December 31, 2015
For the nine months ended
December 31, 2014(55.3)%
178.6 %

Yen

87.87

—

116.14—(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of December 31, 2015

10,163,298

573,540

5.6

As of March 31, 2015

9,545,868

550,672

5.8

Note: Shareholders’ equity:

As of December 31, 2015: ¥572,215 million
As of March 31, 2015:¥549,380 million

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2015
For the year ending
March 31, 2016
For the year ending
March 31, 2016
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

—

0.00

—

40.00

40.00

55.00

55.00

Note: Changes in dividend forecast since the most recent public announcement: None

3. Forecast of consolidated financial results for the year ending March 31, 2016
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2016

Ordinary Profit

Profit Attributable to
Owners of the Parent

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,340,000(0.9)

72,000(20.1)

47,000(13.6)Net Income per
Share
Yen

108.05

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
Note: For details, please refer to the section entitled “Changes in accounting policies, accounting estimates and restatements of the consolidated financial
statements” under “I. Notes Regarding Summary Information” on page 2 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2015:
As of March 31, 2015:(b) Number of treasury shares
As of December 31, 2015:
As of March 31, 2015:(c) Weighted-average number of shares
For the nine months ended December 31, 2015:
For the nine months ended December 31, 2014:

435,000,000 shares
435,000,000 shares
75 shares
55 shares
434,999,936 shares
434,999,945 shares

Status of quarterly review procedures
Quarterly review procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the
Financial Instruments and Exchange Law of Japan. However, quarterly consolidated financial statements in this document are notsubject to such quarterly review procedures.

Content of Supplemental Materials
I.

Notes Regarding Summary Information
Changes in Accounting Policies, Accounting Estimates and Restatements of theConsolidated Financial Statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

II.

III.

2

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

3(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・・

8

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

Attachment
Consolidated Financial Results for the Nine Months Ended December 31, 2015 and Sony Life’s
Market Consistent Embedded Value as of December 31, 2015・・・・・・・・・・・・・・・・・・・・・・・ 11* The Conference Call for explaining the Sony Financial Group financial results will be held at 15:30 (Tokyo),February 12, 2016.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on February 12, 2016 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/en/financial_info/results/index.html* On February 12, 2016, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce their financial results forthe nine months ended December 31, 2015. SFH prepared an English-language summary of those Japanese
announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

1

I. Notes Regarding Summary Information
Changes in Accounting Policies, Accounting Estimates and Restatements of the Consolidated Financial Statements
Changes in accounting policies(Application of Accounting Standards for Business Combinations)
The Sony Financial Group has applied the “Revised Accounting Standards for Business Combinations” (ASBJ Statement No.
21, September 13, 2013), the “Revised Accounting Standards for Consolidated Financial Statements” (ASBJ Statement No.
22, September 13, 2013), the “Revised Accounting Standards for Business Divestitures” (ASBJ Statement No. 7, September
13, 2013) and related standards from the first quarter of the fiscal year ending March 31, 2016. Accordingly, the method ofpresenting net income and other items was amended, and “minority interests” was changed to “non-controlling interests.”
These reclassifications of the consolidated financial statements for the nine months ended December 31, 2014 and the fiscal
year ended March 31, 2015 have been made to conform to the presentation for the nine months ended December 31, 2015.

2

II. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of December 31, 2015

AssetsCash and due from banks¥134,803¥108,920

Call loans and bills bought

77,234

141,613

Monetary claims purchased

–

1,000

Monetary trusts

336,842

290,619

Securities

7,377,545

7,851,843

Loans

1,349,586

1,461,510

Tangible fixed assets

123,083

122,235

Intangible fixed assets

33,36629,82699

39

33,26629,786297

432

Goodwill
OthersDue from reinsurers
Foreign exchanges

2,224

4,509

102,756

139,860

Net defined benefit asset

3,005

3,182

Deferred tax assets

6,545

9,275

Other assets

Reserve for possible loan losses
Total Assets

3(1,422)(1,530)¥9,545,868¥10,163,298

(Millions of yen)
As of March 31, 2015

As of December 31, 2015

¥6,879,055¥7,368,919

61,11467,414

6,813,749

7,296,713

4,191

4,791

Due to agencies

2,450

1,803

Due to reinsurers

675

546

1,872,860

1,861,042

Call money and bills sold

6,000

6,000

Borrowed money

20,00040,000Foreign exchanges

46

175

Bonds payable

20,00020,000

Other liabilities

122,340

218,710

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

Deposits

Reserve for employees’ bonuses

3,395

1,868

Net defined benefit liability

24,55825,840338

323

42,96944,02442,96944,024503

503

8,995,195

9,589,758

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

212,124

232,949(0)(0)

427,301

448,126

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

127,166

128,584

Net deferred gains (losses) on hedging instruments, net of taxes(2,086)(1,989)Land revaluation, net of taxes(1,480)(1,480)0

1

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

Treasury stock
Total shareholders’ equity

Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of taxes(1,522)(1,026)

Total accumulated other comprehensive income

122,078

124,089

1,292

1,324

550,672

573,540¥9,545,868¥10,163,298

Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

42. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the nine months ended
December 31, 2014
Ordinary Revenues

For the nine months ended
December 31, 2015

¥1,021,872¥1,036,134

923,666

935,374

Income from insurance premiums

674,454753,964

Investment income

Ordinary Revenues from the Life Insurance Business

223,046

153,071(Interest income and dividends)

99,219105,180(Income from monetary trusts, net)

3,958

10,837(Gains on trading securities, net)

482–

(Gains on sale of securities)

8,891

12,193(Gains on derivatives, net)

176–

105,393

24,404

26,16528,33969,911

72,776

68,96571,80368,931

71,762

33

41

927

952

(Interest income and dividends)

946

981

(Gains on sale of securities)

15

12(Transfer to interest and dividends on deposits of premiums)

(33)

(41)

17

20

28,29427,983(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

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

19,692

19,055(Interest income on loans)

10,54910,955(Interest income and dividends on securities)

9,070

8,051

Fees and commissions

3,952

4,703

Other operating income

4,477

3,941

2,694

3,075

171

283

(Gains on foreign exchange transactions, net)
Other ordinary income(Continued)

5

(Millions of yen)
For the nine months ended
December 31, 2014

For the nine months ended
December 31, 2015

Ordinary Expenses¥945,990¥978,683

Ordinary Expenses from the Life Insurance Business

859,357

888,087

292,548279,355

58,53561,305

Insurance claims and other payments(Insurance claims)(Annuity payments)

7,552

7,725

(Insurance benefits)52,16860,979(Surrender payments)

170,485

142,940

2,363

4,920

451,076

480,245

1,647

4,648

449,427475,595

2

1

Investment expenses

5,875

4,851

(Interest expenses)

23

40(Losses on trading securities, net)–

94

(Losses on sale of securities)

0–(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends–

515

Operating expenses(Losses on derivatives, net)

85,13997,082Other ordinary expenses

24,71726,55264,93468,434

Underwriting expenses

48,641

50,580(Net losses paid)

33,65335,513(Loss adjustment expenses)

5,083

5,267

717

779

(Provision for reserve for outstanding losses)

2,448

1,651

(Provision for underwriting reserves)

6,736

7,368

1

4

1

4

16,28917,8462

2

Ordinary Expenses from the Non-life Insurance Business(Net commission and brokerage fees)

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses(Continued)

6

(Millions of yen)
For the nine months ended
December 31, 2014
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses

For the nine months ended
December 31, 2015

¥21,698¥22,161

7,117

6,692

3,802

3,532

1,421

1,713

122

125

13,00013,37936250

Ordinary Profit

75,88157,450Extraordinary Losses

1,122

1,936

Losses on disposal of fixed assets

33

875

Impairment losses

68

6

Provision for special reserves

961

1,054

961

1,054

General and administrative expenses
Other ordinary expenses

Provision for reserve for price fluctuations
Provision for reserve for losses on transfer of business

59

–

240

855

Income Before Income Taxes

74,51854,658

Income Taxes – Current

25,56819,860

Income Taxes – Deferred(1,596)(3,457)

Total Income Taxes

23,972

16,403

Profit50,54538,25522

31¥50,522¥38,224

Provision for Reserve for Policyholders’ Dividends

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

7

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
December 31, 2014
Profit

For the nine months ended
December 31, 2015

¥50,545¥38,255

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

38,656

1,417

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

157

97

1

0

689

497

0

－

39,505

2,012¥90,051¥40,268

90,02640,23524

32

Other comprehensive income

Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of taxes
Share of other comprehensive income of affiliates accounted forusing equity method
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests83． Segment Information(1) Segment Information by reporting segment
For the nine months ended December 31, 2014
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥923,666
2,062
925,729¥65,935¥69,911
0
69,912¥4,478¥28,294
137
28,431¥5,314

Total¥1,021,872
2,201
1,024,073¥75,728

For the nine months ended December 31, 2015
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥935,374
2,014
937,389¥48,804¥72,776
1
72,777¥3,824¥27,983155
28,139¥4,666

Total¥1,036,134
2,171
1,038,305¥57,294(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income
Millions of yen
For the nine months ended
For the nine months ended
December 31, 2014
December 31, 2015
¥75,728¥57,2945
6
146
149¥75,881¥57,450

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

4． Subsequent Events
There were no applicable subsequent events.

9

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies
Consolidated subsidiaries:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc. (Changed its name from “SmartLink Network, Inc.” on April 1, 2015.)
SmartLink Network Hong Kong Limited.
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of theSony Financial Group. Any statements contained herein that are not historical facts are forward-looking
statements or pro forma information. Forward-looking statements may include—but are not limited to—words
such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,”“intend” and “possibility” that describe future operating activities, business performance, events or conditions.
Forward-looking statements, whether spoken or written, may also be included in other materials released tothe public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on informationthat is currently available to them. As such, they are subject to various risks and uncertainties, and actual
business results may vary substantially from the forecasts expressed or implied in forward-looking statements.
Consequently, investors are cautioned not to place undue reliance on forward-looking statements. SonyFinancial Group companies are under no obligation to revise forward-looking statements or pro forma
information in light of new information, future events or other findings. The information contained in this press
release does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of
any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on inconnection with any contract or commitment whatsoever in Japan or abroad.

For inquiries:
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1070
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

10

III. Attachment
Content of Presentation Material

Consolidated Financial Results for the Nine Months Ended December 31, 2015 andSony Life’s Market Consistent Embedded Value as of December 31, 2015
・Consolidated Operating Results for the Nine Months Ended December 31, 2015・・・・・・・ 3
・Forecast of Consolidated Financial Results for the Year Ending March 31, 2016・・・・・・・ 28
・Sony Life’s MCEV and Risk Amount Based on Economic Value as of December 31, 2015・・・ 30
・Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34

11

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31
31, 2015
andS
SonyLife’sLif ’Market Consistent Embedded Valueas off DecemberDb 31,
31 201
2015

Sony Financial Holdings Inc.
F b
February12,
12 2016
Sony Financial Holdings Inc. All Rights Reserved

Content
 Consolidated Operating Results for the Nine Months Ended December 31, 2015 P.3
 Forecast of Consolidated Financial Results for the Year Ending March 31, 2016

P.28

 Sony Life’s MCEV and Risk Amount Based on Economic Valueas of December 31, 2015

P.30

 Appendix

P 34
P.34

Disclaimers:
This ppresentation material contains statements concerning
g the current pplans, expectations,pstrategiesgand beliefs of the Sonyy Financial Group.
p Anyystatements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking statements may
include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and“possibility” that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or
written, may also be included in other materials released to the public. These forward-looking statements and pro forma information are based onassumptions, decisions and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them.
them As such,
such they are subject to various risks and uncertainties,
uncertainties and actual business results may vary substantially from the forecasts
expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements.
Sony Financial Group companies are under no obligation to revise forward-looking statements or pro forma information in light of new information, future
events or other findings. The information contained in this presentation does not constitute or form part of any offer for sale or subscription of orsolicitation or invitation of any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection withany contract or commitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc. All Rights Reserved2Consolidated Operating Results for
the Nine Months Ended December 31,, 2015

Sony Financial Holdings Inc. All Rights Reserved

3

Highlights of Consolidated Operating Performance (1)(Billions of yen)

FY14.3Q(9M)

FY15.3Q(9M)

Ordinary revenues

925.7

937.3

+11.6

+1.3%

Ordinary profit

65.9

48.8

(17.1)(26.0%)

Non-life
Insurancebusiness

Ordinary revenues

69.9

72.7

+2.8

+4.1%

Ordinary profit

4.4

3.8

(0.6)

(14.6%)

Bankingbusiness

Ordinary revenues

28.4

28.1

(0.2)

(1.0%)

Ordinary profit

5.3

4.6

(0.6)

(12.2%)

Intersegment
adjustments*
adjustments

Ordinary revenues

(2.2)

(2.1)

+0.0

－

Consolidated ordinary revenues
Consolidated ordinary profit
Life
Insurancebusiness

1,036.1

1,021.8 +1.4%(24.3%)

75 8
75.8

57 4
57.4

Change

01
0.1

01
0.1

+0.0
00

+2.4%
2 4%

1,021.8

1,036.1

+14.2

+1.4%

Ordinary profit

75.8

57.4

(18.4)(24.3%)

Profit attributableto owners of theparent50.5

38.2(12.2)(24.3%)O di
Ordinary
profitfi
Ordinary revenues

Consolidated

FY14.3Q (9M)

*Ordinary profit in “Intersegment adjustments” is mainly from SFH.
*Comprehensive income : FY14.3Q (9M): ¥90.0 billion, FY15.3Q (9M): ¥40.2 billion

FY15.3Q (9M)(Billions of yen)

Change from
15.3.3115.3.3115.12.31

Net assets

550.6

573.5

+22.8

+4.2%

Total assets

9,545.8

10,163.2+617.4+6.5%(Billions of yen)C
Consolidated
lid t dSony Financial Holdings Inc. All Rights Reserved

4Highlights of Consolidated Operating Performance (2)Life Insurance Business: Policy amount in force continued to increase steadily, reflecting a favorable
acquisition of new policies. Ordinary revenues increased year on year, mainly due to a rise in income frominsurance premiums despite lower investment performance in the separate account compared with thepreviousi
period’s
i d’ ffavorable
bl performance,fddrivenibby strongt
fifinancial
i l market
k t conditions.
ditiO
Ordinarydiprofitfit
decreased year on year. This is due to a substantial increase in provision of policy reserves for minimum
guarantees for variable life insurance as a result of an increase in new policy amount and worsened
financial market conditions, partially offset by an increase in gains on sale of securities in the generalaccount.
tNon-life Insurance Business: Ordinary revenues expanded year on year, owing to an increase in net
premiums written primarily for mainstay automobile insurance. Ordinary profit decreased year on year
mainl duemainlyd e to a rise in operating expenses
e penses despite the increase in ordinar
ordinary rerevenues.
en esBanking Business: Both ordinary revenues and ordinary profit decreased year on year, mainly due to a
decline in gains on sale of bonds despite higher revenues related to mortgage loans and foreign currencytransactions.
transactions
Consolidated ordinary revenues increased 1.4% year on year, to ¥1,036.1 billion, owing to increases inordinary revenues from the life insurance and the non-life insurance businesses, whereas ordinary
revenues from the banking business decreased
decreased. Consolidated ordinary profit decreased 24
24.3%
3% year on
year, to ¥57.4 billion, owing to decreases in ordinary profit from all the businesses: life insurance, non-life
insurance and banking. Profit attributable to owners of the parent was down 24.3% year on year, to ¥38.2
billion due to the decrease in ordinary profit.

Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Operating Performance:
Sony Life (Non-consolidated)
O diOrdinary
revenues

925.6

O di
Ordinary
profit
fi

937.2

+1.3%

(Billions of yen)

925.6

937.2

+11.6

+1.3%

754.8

+79.4

+11.8%

Investment income(31.3%)

FY14.3Q (9M)

223.3

153.4

(69.9)

Interest income and dividends

99.5

105.5

+5.9

+6.0%

Income from monetary trusts, net

3.9

10.8

+6.8

+173.8%

Gains on separate accounts, net(26.9%)◆ Ordinary revenues increased but ordinary profit decreased
year on year.
◆ Income from insurance premiums increased year on year,
reflecting a steady increase in policy amount in force.
◆ Investment income decreased due to lower investment
performance in the separate account .
◆ Ordinary profit decreased year on year. This is due to a
substantial increase in provision of policy reserves forminimum guarantees for variable life insurance as a resultof a increase in new policy amount and worsened financial
market conditions, partially offset by an increase in gains
on sale of securities in the general account. Moreover,increased expenses incurred by strong sales of newpolicies and higher payment on insurance claims also
contributed to the decrease in profit.

88
8.8

12.1

+3 3
+3.3

+37 1%+37.1%

105.3

24.4

(80.9)(76.8%)

858.4

888.2

+29.7

+3.5%

Insurance claims and other payments

292.5

279.3

(13.1)(4.5%)

P i i ffor policy
Provisionli reserves andd othersthOrdinary expenses

FY15.3Q (9M) (Billions of yen)

Change675.4

Gains on sale of securities

49.0

FY15.3Q(9M)

Income from insurance premiums

Ordinary revenues

67.1

FY14.3Q
(9M)

451 0
451.0

480 2
480.2

+29.1
29 1

+6.5%
6 5%

Investment expenses

6.0

5.0

(1.0)

(16.5%)

Operating expenses

85.4

97.4

+12.0

+14.0%

Ordinary profit

67.1

49.0

(18.0)(26.9%)Net income

45.2

32.8

(12.3)(27.3%)

15.3.3115.12.31

Securities

6 543 7
6,543.7

7 100 4
7,100.4+556 7+556.7

+8 5%
+8.5%

Policy reserves

6,727.2

7,202.8+475.5

+7.1%

432.5

453.7

+21.1

+4.9%

118.1

121.1

+3.0

+2.5%

7,301.3

7,907.9+606.5

+8.3%

793.3

866.2

+72.8

+9.2%

(Billions of yen)

Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc. All Rights Reserved

Change from
15.3.316

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY14.3Q(9M)

FY15.3Q(9M)

Change<Reasons for changes>

New policy amount

3,619.0

4,052.4+12.0%

Lapsep and surrender amount

1,562.1,

1,474.9,((5.6%))◆ Increased due to higher sales ofvariable life insurance, variableannuities and family income insurance
insurance.

Lapse and surrender rate

4.00%

3.60%

(0.40pt)

Policy amount in force

40,593.6

42,841.7

+5.5%

58.0

65.8

+13.4%(Billions of yen)

Annualized premiums from new policies
Of which, third-sector products
Annualized premiums from insurance in force
Of which, third-sector products

11.7

12.0

+3.2%

727.0

771.8

+6.2%

171.7

178.3

+3.8%

Notes:
Nt
1. Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force, annualized
premiums from new policies and annualized premiums from insurance in force are calculated as the total of individual life
insurance and individual annuities.
2. The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.

FY14.3Q
FY14
3Q
(9M)

FY15.3Q
FY15
3Q
(9M)

ChangeGains from investment, net (General account)

111.9

123.9

+10.7%

Core profit

60.6

35.1

(42.1%)

Positive spread

9.4

11.7

+24.5%(Billions of yen)

Non consolidated solvency margin ratio
Non-consolidated

15.3.3115.12.31

Change from
15.3.312 555 0%2,555.0%

2 757 0%2,757.0%+202 0pt+202.0pt◆ Increased due to higher sales ofvariablei bl lif
life iinsurance andd variable
i bl
annuities.

◆ Decreased year on year due to a
substantial
b t ti l iincrease iin provisioni iof policy reserves for minimum
guarantees for variable life insurance
as a result of an increase in newpolicy amount and worsened financial
market conditions despite higher
positive spread. Moreover, increased
expenses incurred by strong sales of
new policies and higher payment on
insurance claims also contributed tothe decrease in profit
profit.

Sony Financial Holdings Inc. All Rights Reserved

7

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Number of new policies(Thousands ofpolicies)(Trillions of yen)

463

5

+8.3%
8 3%

4

3

(Billions of yen)

+13 4%+13.4%

4.05
3 61
3.61

65.8

501
58.0

60

415

Of which, third-sector

Annualized premiums from new policies+12.0%

48.7

400

3.00

40

200

2

20
+3.2%

1

0

0
FY13.3Q (9M)

FY14.3Q (9M)

FY15.3Q (9M)

10.5

11.7

12.0

FY13.3Q (9M)

FY14.3Q (9M)

FY15.3Q (9M)0Sony Financial Holdings Inc. All Rights Reserved

8Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force

+5.8%

40

6.98

6.67

50
+5.5%

(Billions of yen)

7
+4.6%

40.5

Of which, third-sector
third sector(Millions of policies)(Trillions of yen)

6.59

Annualized premiums from insurance in force

Number of policies in force

40.9

42.8

727 0
727.0

+6.2%

771.8

735 7
735.7

6
5

+4.5%

800

+4.9%

600

4

30

400
3

20
2
10

1

0

0
14.12.31

15.3.31

+3.8%

200

171 7
171.7

172 8
172.8

14.12.31

15.3.31

+3.2%
3 2%

178.3

0

15.12.31

Sony Financial Holdings Inc. All Rights Reserved

15.12.31

9

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
L
Lapse
and
d surrenderd ratet(Annual)

Lapse andLd surrenderd rate
t
(9M)

(%)

10

8

6

4.61

5.35

4

3.52

4.00

(0.40pt)

3.60

2

0
FY13

FY14

FY15

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc. All Rights Reserved

10Operating Performance :Sony Life (Non-consolidated) (4)Income from Insurance Premiums

Interest Income and Dividends(Billions of yen)(Billions of yen)

800

754 8
754.8

738.7

99.5

100

105.5

+6.0%

90.2

675.4
+11.8%

80

600

60
400
40
200
20

0
FY13.3Q (9M)

FY14.3Q (9M)

0

FY15.3Q (9M)

FY13.3Q (9M)

FY14.3Q (9M)

FY15.3Q (9M)Sony Financial Holdings Inc. All Rights Reserved

11

Operating Performance :Sony Life (Non-consolidated) (5)Core Profit

Ordinary Profit(Billions of yen)(Billions of yen)

80

80

67.1
56.6

60

(26.9%)

60.6

60

54.7

(42 1%)(42.1%)

49 0
49.0
40

35.1

40

20

20

0

0
FY13.3Q (9M)

FY14.3Q (9M)

(Reference) Impact on core profit

FY13.3Q(9M)

Positive spread
Provision of policy reserves for minimum guarantees
for variable life insurance (*1)
Effects by the revision of policy reserve discountrate(Interestt (I tt rate-sensitivet
iti whole
h l liflife iinsurance ) (*2)

FY13.3Q (9M)

FY15.3Q (9M)(Billions of yen)
FY14.3Q FY15.3Q
(9M)
(9M)

FY14.3Q (9M)

FY15.3Q (9M)

(Reference) Main differences from core profit
FY13.3Q(9M)(Billions of yen)
FY14.3Q FY15.3Q
(9M)
(9M)

5.7

9.4

11.7

Capital gains (losses) excluding gains or losses onhedges (*1)

1.2

10.4

19.7

0.9

(3.3)

(24.2)

Gains (losses) on hedges of variable life insurance

－

－

(0.6)

(5.7)

－

－

(2.9)

(3.8)

(4.9)

Provision of contingency reserve (*1)

*1: “Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*2: The effected amount of a surge of sales of interest rate-sensitive whole life insurance due to a delay in rising insurance premiums (May 2013) against the revision of policy reserve discount rate .

Sony Financial Holdings Inc. All Rights Reserved

12

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees+160(Number)

4,500

4,216
,
[138]

4,228
[146]

14.3.3114.6.30

4,248
[150]

4,329
[161]

4,216
,
[155]

4,352
[174]

4,376
[194]

4,415
[183]
(39)

4,000

3,500

3,000
0

14.9.30

14.12.31

15.3.3115.6.30

15.9.30

15.12.31

Note: Figures in [ ] show the numbers of Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement) included in the overall
numbers, those who have reached retirement age but who continue to work as Lifeplanner sales employees that meet certain sales conditions
and other requirement.

Sony Financial Holdings Inc. All Rights Reserved

13

Operating Performance :Sony Life (Non-consolidated) (7)Breakdown of General Account Assets
15.3.3115.12.31<Asset management review>(Billions of yen)Amount%Japanese governmentand corporate bonds

5,606.8,

86.2%

6,151.3,

87.4%

Japanese stocks

42.4

0.7%

36.6

0.5%

Foreign bonds

105.5

1.6%

68.9

1.0%

Amount%<Bond duration>
Mar. 31, 2014: 19.7 years

Foreign stocks

26.0

0.4%

24.1

0.3%

Monetary trusts

313.2

4.8%

267.6

3.8%

Policy loans

162.3

2.5%

167.8

2.4%

Real estate*

117.7

1.8%

116.4

1.7%

Cash and call loans

56.8

0.9%

102.4

1.5%

Others

76.7

1.2%

106.2

1.5%

6 508 06,508.0

100 0%
100.0%

7 041 7
7,041.7

100 0%
100.0%Total

We have continued to accumulate ultralongterm bonds to match the liability
characteristics of insurance policies withllong-termtmaturities
t iti with
ith theth aimi off reducing
d iinterest rate risk.

Mar. 31, 2015: 20.3 years
Dec. 31, 2015: 20.5 years■ Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
g ratio on the real status of Japanesep■ The holding
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Dec. 31, 2015: 91.2%(As of Mar. 31, 2015: 91.0%)*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc. All Rights Reserved

14

Operating Performance :Sony Life (Non-consolidated) (8)Non-consolidated Solvency Margin Ratio

(%)

3,000

2,757.0
2,555.0
2,500

2,358.7+202.0pt

2,000

1,500

1,000014.3.3115.3.3115.12.31

Sony Financial Holdings Inc. All Rights Reserved

15

Operating Performance :AEGON Sony Life Insurance*AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount(Billions of yen)

140

Number of new polices [ ]127.8[22.2]

430.4[70.8]

500

20

100

Number of policies in force [ ](Billions of yen)

24
107.5
[18.1]

120

Policy amount in force(Thousandsof policies)

400

338.5
[55.2](Thousandsof policies)

80

390.4
[63.5]
60

16

300

53.2
[8.9]

80

12

40

60

200

8

40
20
0

4

100

0

0

FY13.3Q (9M) FY14.3Q (9M) FY15.3Q (9M)20

014.12.31

15.3.3115.12.31

Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance(Billions of yen)

ChangeFY14.3Q (9M)

FY15.3Q (9M)

AEGON Sony Life Insurance

(3.6)

(1.5)

+2.0

SA Reinsurance

1.0

0.8

(0.1)

*AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance and SA Reinsurance are recognized as
investment profit (losses) on equity method in the SFH’s profit attributable to owners of the parent.

Sony Financial Holdings Inc. All Rights Reserved

16

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

69.9

Ordinary profit

FY14.3Q(9M)

FY15.3Q
(9M)

69.9

72.7

+2.8

+4.1%

Underwriting income

68.9

71.8

+2.8

+4.1%

Investment income

0.9

0.9

+0.0

+2.7%

65.4

68.9

+3.5

+5.4%

Underwriting expenses

48.9

50.9

+1.9

+4.0%

Investment expenses

0.0

0.0

+0.0

+372.7%

Operating general andadministrative expenses

16 4
16.4

18 0
18.0

+1.5
15

+9.5%
9 5%

Ordinary profit

4.4

3.8

(0.6)

(14.6%)

Extraordinary losses

0.0

0.8

+0.8

－

Net income

3.1

2.1

(1.0)

(32.2%)(Billions of yen)

72.7

+4.1%

Ordinary revenues

4.4

Ordinary expenses

38
3.8(14.6%)

FY14.3Q (9M)

FY15.3Q (9M)(Billions of yen)

◆ Ordinary revenues increased but ordinary profit
decreased year on year.
◆ Ordinary revenues expanded year on year, owing
to an increase in net premiums written primarily
for mainstay automobile insurance.
◆ Ordinary profit decreased year on year
year, mainly
due to a rise in operating expenses such as
advertising expenses despite the increase inordinary revenues.
◆Net income decreased year on year, owing to therecording of a loss on disposal of software in
progress as an extraordinary loss.

(Billions of yen)

15.3.3115.12.31

ChangeChange from
15.3.31

Underwriting reserves

86.5

93.8

+7.3

+8.5%

Net assets

24.7

27.8

+3.1

+12.7%

Total assets

157 9
157.9

165 7
165.7

+7.8
7.8

+5.0%
5.0%

Sony Financial Holdings Inc. All Rights Reserved

17

Overview of Operating Performance:
Sony Assurance(Billions of yen)

FY14.3Q(9M)

FY15.3Q(9M)<Reasons for changes>

ChangeDirect premiums written

67.9

70.8

+4.2%

Net premiums written

68 9
68.9

71 7
71.7

+4 1%
+4.1%

Net losses paid

33.6

35.5

+5.5%

Underwriting profit

3.5

2.9

(19.0%)Net loss ratio

56.2%

56.8%

+0.6ptp

Net expense ratio

25.3%

26.6%

+1.3ptCombined ratio

81.5%

83.4%

+1.9pt◆ Increased mainly in its mainstay
automobile insurance.

◆ Increased mainly due to higher
advertising expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

FY14.3Q(9M)

FY15.3Q(9M)

ChangeE. I. loss ratio

63.5%

63.1%

((0.4pt))

E. I. loss ratio +Net expense ratio

88.8%

89.7%

+0.9pt◆ Declined slightly reflecting
persistently
i t tl llow car accident
id t ratio.
tiNotes:
Earned/Incurred (E.I.) loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[[Earthquakeqinsurance and compulsorypy automobile liability
y insurance are excluded from the above calculation.]]Number of policies in force
Non-consolidated
solvency margin ratio

15.3.3115.12.31

Change from 15.3.31

1.70 million

1.77 million+0.07 million

629.6%

695.6%+4.5%+66.0pt

Note: The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.

Sony Financial Holdings Inc. All Rights Reserved18Sony Assurance’s Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written
FY14.3Q(9M)

FY15.3Q(9M)

Change

Fire

206

259

+26.1%

Marine－－－Personal accident

6,425

6,496

+1.1%

Voluntary automobile

61,31964,053+4.5%(Millions of yen)Compulsory
automobile liability
Total

FY14.3Q(9M)

FY15.3Q(9M)

Change

Fire

28

35

+25.0%

Marine10136(64.3%)

Personal accident

6,642

6,721

+1.2%

Voluntary automobile

61,16363,913+4.5%

Compulsory
automobile liability

995

1,055

+6.1%

68,931

71,762+4.1%
4.1%(Millions of yen)

－

－

－

67 95067,95070,810

+4 2%
+4.2%

Total

*Medical and cancer insurance is included in personal accident.

Net losses paid
FY14.3Q(9M)

FY15.3Q(9M)

ChangeFire2

1(46.5%)

Marine82122+48.3%

Personal accident

1 1
1,714

1 838
1,838

+7.2%
2%

Voluntary automobile

30,93532,587+5.3%

Compulsory
automobile liability

918

963

+4.9%

33,65335,513+5.5%(Milli(Millions
off yen))

Total

Sony Financial Holdings Inc. All Rights Reserved

19

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force(Billions of yen)

Voluntary automobile insurance
Personal accident insurance
OthersNumber of policies in force(Billions
100 of yen)

80

1.59
66.5

1.67

+5 9%
+5.9%

68.9 +4.1%

1 77
1.77

60

(Millions ofpolicies)
2

71.7
6.7

8

1.1

63.9

Ordinaryy profitpAdjustedjordinary
yp
profit

6.6

6.0

6

(8.5%)

4.4

1.5

3.8

4
1

2.7

3.3

(14.6%)

40
2
0.5

20
0

0

FY13 3Q (9M)
FY13.3Q

FY14 3Q (9M)
FY14.3Q

FY15 3Q (9M)
FY15.3Q

0
FY13 3Q (9M)
FY13.3Q

FY14 3Q (9M)
FY14.3Q

FY15 3Q (9M)
FY15.3Q*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(Reference) Provision for catastrophe reserve
The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies
policies, which account for 99% of net premiums written
written.
More than 90% of personal accident insurance is medical and cancer insurance.

(Billions of yen

FY13.3Q (9M) FY14.3Q (9M) FY15.3Q (9M)
Provision for catastrophe reserve

0.6

2.1

2.2

*Provision for catastrophe reserve is described as positive amountSony Financial Holdings Inc. All Rights Reserved

20

Operating Performance:
Sony Assurance (2)＜参考＞ (Reference) Combined Ratio

Earned/Incurred Loss Ratio +Net Expense Ratio
E
Earned/Incurredd/Id losslratioti(Net Loss Ratio+ Net Expense Ratio)
N t loss
Net
l
ratio
ti

N t expense ratio
Net
ti

(%)

(%)

100

100

93.8

91.0

93.3

60

89.7

88.8

84.9
+0.9pt

80

68.7
68.2

63.5
(0.4pt)

64.3

84.3

84.3

80

83.4

81.5
+1.9pt

60

63.1

59.7
59.3

57.6

25.6

26.7

56.2 +0.6pt

56.8

40

40

20

N t expense ratio
Net
ti

20

+1.3pt

25.6

26.7

24.6

25.3

26.6

FY13.3Q

FY14.3Q

FY15.3Q+1.3pt

24.6

25.3

26.6

FY13.3Q

FY14.3Q

FY15.3Q

0

0
FY13

FY14

FY13

FY14

(9M)

(9M)
Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding
losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums writtenSony Financial Holdings Inc. All Rights Reserved

21

Operating Performance:
Sony Assurance (3)Non-consolidated Solvency Margin Ratio

(%)

800

695.6%
629.6%
527 6%
527.6%+66.0pt

400

014.3.3115.3.3115.12.31

Sony Financial Holdings Inc. All Rights Reserved

22Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)<Consolidated>C
lid t dConsolidated ordinary revenues
Consolidated ordinary profit

28.4

FY15.3Q(9M)

Consolidated ordinary revenues

28.4

28.1

(0.2)

(1.0%)

Consolidated ordinary profit

5.3

4.6

(0.6)

(12.2%)

Profit attributable to owners of theparent

3.2

3.0

(0.2)

(6.7%)

FY14.3Q(9M)

FY15.3Q
(9M)

26.4

25.9

(0.5)

(1.9%)

Gross operating profit

16.6

16.2

(0.3)

(2.2%)Net interest income

12.5

12.3

(0.2)

(1.8%)Net fees and commissions

(0.2)

0.1

+0.3

―
(12.4%)(Billions of yen)

(1.0%)

4.6
53
5.3

FY14.3Q(9M)

28.1<Non-consolidated>(12.2%)(Billions of yen)

Ordinary revenues

FY14.3Q (9M)

ChangeFY15.3Q (9M)(Billions of yen)<Consolidated>◆Both ordinary revenues and ordinary profit decreased
year on year, mainly due to a decline in gains onsale of bonds despite higher revenues related to
mortgage loans and foreign currency transactions.
<Non-consolidated>◆ Both gross operating profit and net operating profit
decreased year on year.
・Net interest income decreased due to lower interest
income and dividends on securities.
・Net fees and commissions improved due to higher
fees on mortgage loans
loans.
・Net other operating income decreased due to a
decline in gains on sale of bonds.

Net other operating income

Change

4.3

3.8

(0.5)

General and administrative expenses

11.4

11.6

+0.1
0

+1.7%
%

Net operating profit

5.3

4.6

(0.6)

(13.1%)

Ordinary profit

5.2

4.6

(0.6)

(12.7%)Net income

3.3

3.0

(0.2)

(7.0%)

15.3.3115.12.31

77.0

77.6

+0.5

+0.7%

66
6.6

40
4.0

(2 6)
(2.6)

(39 3%)(39.3%)

2,062.5

2,067.0

+4.5

+0.2%

(Billions of yen)

Net assets
Net unrealized gains onother securities, net of taxes
Total assets

Change from
15.3.31Sony Financial Holdings Inc. All Rights Reserved

23

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)Change from
15.3.31

14.12.31

15.3.3115.12.31

Customer assets

1,989.0

2,007.9

1,980.5(27.3)(1.4%)

Deposits

1,863.6

1,878.2

1,866.4(11.8)(0.6%)

Yen

1 531 6
1,531.6

1 551 01,551.0

1,538.5(12 5)(12.5)(0 8%)(0.8%)

331.9

327.2

327.9

+0.6

+0.2%

125.3

129.6

114.1

(15.5)(12.0%)

1 121 81,121.8

1 187 1
1,187.1

1 293 6
1,293.6+106 4+106.4

+9 0%
+9.0%

1,011.6

1,074.3

1,181.8+107.4+10.0%

110.1

112.8

111.7*1(1.0)(0.9%)

11.23%

10.66%

10.50%(Billions of yen)

Foreign currency
Investment trusts
Loans
Mortgage loans
OthersC it l adequacy
Capitaldratio
ti *22(domestic criteria)<Reasons for changes>◆ Yen deposit balance decreased
reflecting severe interest ratecompetitions for yen time deposits inthe first half.
◆ The yen
yen-denominateddenominated balance of
foreign currency deposits increasedslightly, due to higher foreign currency
purchases, driven by rising market
sentiment that yen depreciation had
nearly stopped.
stopped◆ Loan balance expanded reflecting
a growing balance of mortgage loans.

(0.16pt)*1 Loans in others include corporate loans of ¥103.6 billion*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P27.

Sony Financial Holdings Inc. All Rights Reserved

24Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis(Billions of yen)

FY15.3Q
(9M)

16.5

16.1

(0.3)

(2.2%)

13.7

13.9

+0.2

+2.2%

(%)

1.50

Gross operating profit
Net interest income*1①*2<Reference> Interest Spread(Managerial Accounting Basis)

FY14.3Q(9M)

Change

0.4

0.7

+0.3

+88.1%Net other operating income*3

24
2.4

14
1.4

(1 0)
(1.0)

(42 0%)(42.0%)

Gross operating profit (core profit)(A)＝①＋②

14.1

14.7

+0.6

+4.7%

Operating expenses and otherexpenses
③

11.3

11.6

+0.3

+3.0%

Net operating profit (core profit)＝(A)－③

2.7

3.1

+0.3

+11.4%Net fees and commissions②

Yield on financing

Yield on investment■Managerial accounting basis

Interest spread

1.20

1.00

1.19

0.93

+0.01pt

0.92

0 50
0.50

Th followingThef ll i adjustments
dj t
t are made
d to
t the
th figuresfi
on a financial
fi
i l accountt ffor profits
fit anddlosses more appropriately.

0.28

0.26

FY14.3Q (9M)

FY15.3Q (9M)

*1: Net interest income: Includes profits and losses associated with fund investment recorded in
net other operating income, including gains or losses from currency swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income
income.

00.00*3: Net other operating income: After the above adjustments (*1 and *2), mainly consists ofprofits and losses for bond and derivative dealing transactions.
■Core profit

Note: Interest spread=(Yield on investment)-(Yield on financing)

Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactionstransactions, and stands for Sony Bank’s
Bank s basic profits.
profits

Sony Financial Holdings Inc. All Rights Reserved

25

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen deposits

Foreign currency deposits

Mortgage loans

Others(Billions of yen)
1,500(Billions of yen)

1,293.6
2,000

1,890.0

1.878.2

363.5

327.2

1,866.4(11.8)

1,187.1
1,057.4

327.9
1,000

1,500

112.8

111.7

*corporate loansof ¥103.6 billion+106.4108.1

1,181.8
1,526.4

1,551.0

1,074.3

1,538.5
949.3

1 000
1,000

500

500

0

0

14.3.3115.3.3115.12.31

14.3.31Sony Financial Holdings Inc. All Rights Reserved

15.3.3115.12.31

26

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB(Domestic Criteria)

AA
A
Others(%)

15(Billions of yen)

1,200

11 72
11.72
10.66

1,000

800

(0 16 t)(0.16pt)

773.8

10.50

10

730 0
730.0
624.7
(105.2)

600

5
400

200
0
14.3.310
14.3.3115.3.3115.12.31

15.3.3115.12.31*Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc. All Rights Reserved27Forecast of Consolidated Financial Results
for the Year Ending March 31,
31 2016

Sony Financial Holdings Inc. All Rights Reserved

28

Forecast of Consolidated Financial Results for FY15
SFH’s forecast of consolidated financial results for FY15 is unchanged from the forecast announced on Oct. 29, 2015.

(Billions of yen)

FY14
(Actual)FY15(Forecast)

ChangeFY15.3Q (9M)
(Actual)Progress rate

Consolidated ordinary revenues

1,352.3

1,340.0(0.9%)

1,036.1

77.3%

Life insurance business

1,223.9

1,212.8(0.9%)

937.3

77.3%

Non-life insurance business

93.0

97.1

+4.4%

72.7

75.0%

Banking business

38.4

36.8

(4.2%)

28.1

76.5%

Consolidated ordinary profit

90.0

72.0

(20.1%)

57.4

79.8%

Life insurance business

78.3

61.4

(21.6%)

48.8

79.5%

Non-life insurance business

4.2

4.4

+4.5%

3.8

86.9%

Banking business

7.3

6.4

(12.7%)

4.6

72.9%

54.4

47.0

(13.6%)

38.2

81.3%

Profit attributable to owners of the parent

The forecasts for FY15 financial results, both consolidated and for the individual businesses (life insurance, non-life insurance and banking) remainunchanged because the actual results were in line with our expectations.
We expect current financial market conditions, which have fluctuated significantly since January 2016, to have a limited impact on forecasts for FY15
financial results,
results both the consolidated and for the individual businesses.
businesses The impact from the current market conditions are incorporated in our
forecasts.

Sony Financial Holdings Inc. All Rights Reserved29Sony Life’s MCEV and
Risk Amount Based on Economic Valueas of December 31, 2015

Please keep in mind that the validity of these calculations of MCEV as of September 30, 2015 and December 31, 2015, has not been verified byoutside specialists. A part of the calculations of MCEV as of September 30, 2015 and December 31, 2015, adopted simplified method.
*In this part, figures, ratios and percentages changes have been rounded.

Sony Financial Holdings Inc. All Rights Reserved30Sony Life’s MCEV(Billions of yen)

15.3.31

MCEV
Adjusted net worth
Value of existing business(Billions of yen)

15.9.30

15.12.31

Change from
15.3.31

Change from
15.9.30

1,322.9

1,388.2

1,386.9

+64.0

(1.3)

1,119.2

1,082.7

1,229.5+110.3+146.8

203.7

305.5

157.4

(46.2)(148.0)FY15.1H(6M)

FY15.3Q
(9M)

FY14
(12M)

New business value

48.6

20.1

27.3

New business margin

3.8%

2.6%

2.4%

Notes:
1. New business margin equals new business value divided by present value of premium income.
2. In calculating MCEV as of September 30, 2015 and December 31, 2015, Sony Life updated economic assumptions and lapse and surrender rates from March 31, 2015.

 Reasons for changes in MCEV・ MCEV as of December 31, 2015 decreased ¥1.3 billion from September 30, 2015, mainly due to a decline in interest rates
in Japanese yen despite the continued favorable acquisition of new policies.
・MCEV as of December 31, 2015 increased ¥64.0 billion from March 31, 2015, mainly due to an acquisition of new policies.
 New business value / new business margin
・New business value for FY15.3Q (9M) was ¥27.3 billion (¥36.3 billion / annualized).
・New business margin for FY15.3Q (9M) was down 0.2pt from FY15.1H (6M) mainly due to a decline in interest rates inJapanese yen, partially offset by the positive impact of funding limits on variable life insurance.
It was down 1.4pt
1 4pt from FY14 (12M) mainly due to a change of product mix and a decline in interest rates in Japanese yen
yen.
・Please see page 43 for trend on JGB yields.

Sony Financial Holdings Inc. All Rights Reserved31

(Reference) Changes on Sony Life’s New Business Value
New business value for FY15.3Q (3M) increased significantly to ¥15.2 billion(¥60.8 billion / annualized)
compared with ¥12.1 billion (¥24.2 billion / annualized) for FY15.1H (6M).

(Billions of yen)

FY15.3Q (3M)
FY15.3Q (9M)

15.2
(3.9%)**

27.3(8 0)*(8.0)*(2.4%) **FY15.1H (6M)
FY15.1H (6M)

20 1
20.1
12.1

(2.6%) **(1.6%)**
Assumptions as of Dec. 31, 2015

Assumptions as of Sep. 30, 2015

Notes:*Effected amount by revaluating new business value as of FY15.1H (6M) with the assumptions including interest rates as of
D
Dec.
31
31, 2015
2015. NNew bbusiness
i
value
l d
decreasedd mainly
i l d
due tto a ddeclineli iin iinteresttt rates.
t*Figures in [ ] show new business margin.
Sony Financial Holdings Inc. All Rights Reserved

32Sony Life’s Risk Amount Based on Economic Value(Billions of yen)

15.3.3115.9.30

15.12.31

Insurance risk

724.2

752.9

782.6

Market-related risk

287.0

284.6

301.1

Of which, interest rate risk*

218.5

220.2

232.0

Operational risk

25 9
25.9

26 2
26.2

26 7
26.7

Counter party risk

1.8

3.1

2.8

Variance effect(293.4)(300.1)(313.3)

Risk amount based on economic value

745.5

766.8

799.9

(*) Interest rate risk amount excluding the variance effect within market-related risk.
((Billions of yyen))

15.3.3115.9.30

15.12.31

MCEV

1,322.9

1,388.2

1,386.9

ESR

177%

181%

173%

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance risk andmarket-related risk.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar but
modified model based on the EU Solvency II (QIS5) standard method.
3 ESR=MCEV/
3.
ESR MCEV/ Ri
Riskk amountt b
based
d on economic
i value.
l Maintained financial soundness by controlling market-related risk.
Sony Financial Holdings Inc. All Rights Reserved

33

Appendix

Sony Financial Holdings Inc. All Rights Reserved

34

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥26 billion (including capital surplus of ¥13 billion)
Equity ownership: Sony Life insurance Co Ltd 50%, AEGON international B V 50%
Marketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner *Banks* (25*) *As of Feb. 12, 2016
SA Reinsurance Ltd
Established： October 29,, 2009
Common stock: ¥11 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance business*AEGONAEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50
50-50
50 joint ventures established by Sony Life and AEGON Group.

Sony Bank’s Mortgage Loans through Sony Life
■Sonyy Life accounts for 21% of the balance of mortgage
g g loans as of Dec. 31, 2015
Sony Life accounts for 15% of the amount of new mortgage loans for FY15.3Q (9M)*Sony Life started handling banking agency business in January 2008.

S
Sony
Assurance’s
A
’ A
Auto
t Insurance
I
Sold
S ld bby S
Sony Lif
Life■Sony Life accounts for 4% of new automobile policies for FY15.3Q (9M)*Sony Life started handling automobile insurance in May 2001.

Sony Financial Holdings Inc. All Rights Reserved35

Recent Topics 2<Highlights for FY2015.3Q>
2015-10-01

Sony Assurance introduced a system for the direct payment to medical institutions of advance
medical insurance claims

2015-11-02

Sony Life commenced sale of a new product: “Living Benefit Term Life Insurance (Living
Standard Type) “

2015-11-25

Sony Financial Holdings disclosed a “Basic Policy on Corporate Governance”

2015-12-21

S
Sony
Lif
Life C
Care GGroup startedt t d advertisementd ti
t ffor residents
id t ffor a newly
l b
built
ilt nursing
i care hhome“SONARE Soshigaya-Okura”, which is scheduled to open in April 20162016-01-04

Sony Bank commenced service of “Sony Bank WALLET,” a cash card with a Visa debit
functionSony Financial Holdings Inc. All Rights Reserved

36Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair Value Information on Securities with market value (except trading-purpose securities)(Billions of yen)

Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2. Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the “Held-to-maturity securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons.
As of March 31, 2014; Carrying amount: ¥43.8 billion, Fair market value: ¥56.0 billion, Net unrealized gain (losses): ¥12.2 billion
As of March 31, 2015; Carrying amount: ¥44.2 billion, Fair market value: ¥57.5 billion, Net unrealized gain (losses): ¥13.2 billion
As of Dec. 31, 2015 ; None

Valuation gains (losses) on trading-purpose securities(Billions of yen)

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

Sony Financial Holdings Inc. All Rights Reserved37Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY14.3Q (9M)

FY15.3Q (9M)

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00+165.9%80,02285,907

+7.4%

299

356

+19.1%

Foreign securities

6,645

5,653

( 14.9%)Other securities

355

1,260

+255.1%

Loans

4 439
4,439

4 616
4,616

+4 0%
+4.0%

Real estate

7,744

7,681

(0.8%)

56

47(15.5%)

99,563

105,524+6.0%

Others
Total

Sony Financial Holdings Inc. All Rights Reserved

38Sony Life’s Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Billions of yen)

1 491 6
1,491.6

1,500

1,437.4
1,324.2

1,250

1,152.5

1,135.8

1,128.3
1,033.3

1,290.7

991.5

1,000
841.4

886.2

750
500
250
0
FY13 1Q FY13.2Q
FY13.1Q
FY13 2Q FY13.3Q
FY13 3Q FY13.4Q
FY13 4Q FY14.1Q
FY14 1Q FY14.2Q
FY14 2Q FY14.3Q
FY14 3Q FY14.4Q
FY14 4Q FY15.1Q
FY15 1Q FY15.2Q
FY15 2Q FY15.3Q
FY15 3Q

Sony Financial Holdings Inc. All Rights Reserved39Sony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector(Billions of yen)

25

22 7
22.7

22.3

21.8

20.6
20

18.9

18.5

18.5
17.2

16 8
16.8
15.2
15

13.2

10

5

51
5.1
3.9

3.6

3.0

2.9

3.7

2.8

3.5

3.9

3.4

4.6

0
FY13.1Q
Q FY13.2Q
Q FY13.3Q
Q FY13.4Q
Q FY14.1Q
Q FY14.2Q
Q FY14.3Q
Q FY14.4Q
Q FY15.1Q
Q FY15.2Q
Q FY15.3Q
Q

Sony Financial Holdings Inc. All Rights Reserved

40

Method of Measuring Risk Amount
Based on Economic Value (1) Market-related Risk*1

Interest rate risk
Fluctuations in net asset
value based on economic
value in response to theshocks in the right columns.
The same applies below.

Sony Life(Reference) EU Solvency II (QIS5)

Percentage increases or decreases differ for eachcurrency and term
term.
As for measuring interest rate risk in Japanese yen,introduced principal component analysis, where yield
curve changes are disaggregated into threecomponents, parallel shift, twist and butterfly, and theyield curve is shocked by each component
component.

Percentage increases or decreases differ for eachcurrency and term but no lower than 1%(Example)
For Yen 30-year, 30% decrease(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist), 8% decrease (butterfly)

E it risk
Equityi k

Li t d equities
Listediti 45%45%, Oth
Other securities
iti 70%Gl b l 30%,
Global
30% OthOthers 40%*2

Real estate risk

Actual real estate 25%

Real estate 25%

Credit risk = (market value) x (risk coefficient for eachcredit rating) x duration

Credit risk

Note that durations have caps and floors, depending
on credit ratings.

Same as on the left

(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Currency risk

30% downside fluctuation

25% downside fluctuation

Notes
1. Principal
p items as of Dec. 31, 2015.
2. Standard risk coefficients are global: 39%/other: 49%. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in
the past) is applied; as of the QIS5 trial introduction (Dec.31, 2009), these were 30%/40%.

Sony Financial Holdings Inc. All Rights Reserved

41

Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk*1

Sony Life(Reference) EU Solvency II (QIS5)

Mortality risk

Mortality rate increases by 15% for each year elapsed Same as on the leftLongevity risk

Mortality rate decreases by 20% for each year
elapsedSame as on the left

L
Lapse
risk
i k

Th largestThelt amountt off these;th*2

Th largestThelt amountt off these;th•Lapse rate increases by 50% for each year elapsed• Increases by 50% in the assumed rates of• Lapse rate decreases by 50% for each year elapsed

lapsation for Life module, 20% for Health module• 30% of policies on which surrender value is in•Decreases by 50% in the assumed rates ofexcess of best estimate liability are immediately
surrendered

lapsation for Life module
module, 20% for Health module• 30% of policies (70% for group annuities, etc.) on

which surrender value is in excess of best
estimate liability are immediately surrendered
E pense risk
ExpenseDisability risk

Operating e
expensespenses increase b
by 10% for each yearear
elapsedRate of inflation rises by 1%

Same as on the left

Rate of occurrence increases by 35% in the first fiscal Rate of occurrence increases by 35% in the firstyear, rising by 25% for each year thereafteryearfiscal year
year, rising by 25% for each year thereafter.
thereafter
Recovery rate decreases by 20%.

Notes
1. Principal items as of Dec. 31, 2015.
2. At Sony Life, the largest amount of three options is calculated for each insurance policy.

Sony Financial Holdings Inc. All Rights Reserved

42

JGB Yields

As of the end of each monthSony Financial Holdings Inc. All Rights Reserved

43

Contact:
Communications & Investor Relations Department
Sony Financial Holdings Inc.
Inc
TEL： +81-3-5785-1070

Sony Financial Holdings Inc. All Rights Reserved

44