May 20, 2013
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2013
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2013

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2013

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2013

P.6

5. Non-consolidated Balance Sheets

P.14

6. Non-consolidated Statements of Income

P.15

7. Reconciliation to Core Profit and Non-Consolidated Ordinary Profit

P.16

8. Loans by Borrower Category

P.17

9. Risk-monitored Loans

P.17

10. Solvency Margin Ratio

P.18

11. Status of Separate Account Assets for the Year Ended March 31, 2013

P.19

12. Consolidated Summary

P.21

13. (Reference 1) Holdings of Securitized Papers and Other Sub-prime Related Investments

P26

1

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)Policy amount in force

As of March 31, 2012
Category

Number% change fromMarch 31, 2011

AmountAs of March 31, 2013
% change fromMarch 31, 2011

Number% change fromMarch 31, 2012

Amount% change fromMarch 31, 2012

Individual life insurance
5,602
106.0
357,073
103.7
5,958
106.4
373,663
104.6
Individual annuities
71
118.4
3,697
113.2
82
115.0
4,127
111.6
Group life insurance
12,687105.8－－
13,456106.1－－
Group annuities
578
98.1
－
565
97.7
－
－
－
Notes: 1. Policy amounts for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments commence for policies for which annuity payments have notyet commenced and (b) the amount of policy reserves for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2012
Category

For the year ended March 31, 2013

AmountNumberAmount
% YoY
% YoY
% YoY
Increase from
New policies
conversion
changechangechangeIndividual life insurance
577
97.5
41,45699.5
41,456－607
105.1
43,966
Individual annuities
13
198.3
576
176.1
576
－
13
98.5
579
Group life insurance
－
－
37
24.8
37
－
－
56
Group annuities
－
－
－
－
－
－
－
－
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.
Number% YoY
New policies
change106.1
43,966
100.5
579
150.7
56
－
－

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection, etc.

As of March 31, 2012

% change fromMarch 31, 2011

As of March 31, 2013

% change fromMarch 31, 2012

621,647
13,753
635,401

104.9
111.3
105.1

654,723
15,214
669,937

105.3
110.6
105.4

148,954105.8

158,686

106.5(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection, etc.

For the year ended
March 31, 2012
68,651
2,203
70,854% YoYchange
98.8
125.0
99.5

17,101102.5

For the year ended
March 31, 2013
71,0692,193
73,263% YoYchange
103.5
99.6
103.4

18,397

107.6

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods,
thereby converting the figure to a per-year premium. (For 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.)

2

Increase fromconversion－－

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2012

% YoYchangeFor the year ended
March 31, 2013

% YoYchangeIncome from insurance premiums

816,106

105.9

925,874

113.5

Investment income

133,945112.1

199,833

149.2

Insurance claims and other payments

287,43196.5

293,929

102.3

Investment expenses

14,37074.4

11,686

81.3

Ordinary profit

69,436

94.9

74,659107.5(4) Total Assets
Category(Millions of yen, %)As of March 31, 2012

Total assets

5,222,846

3% change fromMarch 31, 2011

110.6

As of March 31, 2013
5,952,750% change fromMarch 31, 2012114.0

2. Policy Amount in Force by Insurance Function as of March 31, 2013
(Number: Thousand, Amount: 100 millions of yen)
Total

Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberAmountNumberAmountNumberAmountOrdinary death

4,885

356,718

－

－

2,128

13,456

7,013

370,174

Accidental death776

70,548

－

－

35

17

812

70,566

Death protection
with otherconditions

309

14,130

－

－

－

－

309

14,130

1,073

16,945

82

4,127

0

0

1,155

21,072

Accidental
hospitalization

2,568

180

－

－

74

0

2,643

180

Sickness
hospitalization

2,568

180

－

－

－

－

2,568

180

Hospitalization
with otherconditions

864

76

－

－

－

－

864

76

Disability protection

501

－

－

－

74

－

575

－

Surgery protection

1,670

－

－

－

－

－

1,670

－

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category
NumberLiving protection

Category

Amount191

565

AmountNumberAmount

－

191

565

－

Medical protection
insurance
NumberHospitalization
protection

Number

Total

Disability insurance
Category

Amount-Number-Disability protection

Amount-Notes: 1. The number of new policies for group life insurance products, and group annuity products reflects the total numberof insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities
and group life insurance (annuity payment rider) is equal to the sum of (a) the funds to be held at the timeannuity payments are to commence for policies for which annuity payments have not yet commenced and(b) the amount of policy reserves for policies for which payments have commenced.
The policy amount in force for group annuity products is the amount of outstanding policy reserves.
3. Figures for hospitalization protection show the daily claims for hospitalization.

4-

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2013
(1) Standard dividend yields for semi-participating individual life insurance with
policyholder
For the year ended
March 31, 2012

For the year ended
March 31, 2013

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

1.55%
1.20%

1.55%
1.20%

1.40%
1.05%

1.40%
1.05%

Assumed interest rates of more than 2.00%
Level-premium
Lump-sum premium and others(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuities commence) using figures for the fiscal year ended March 31, 2013.
Example: Semi-participating whole life nursing-care insurance (before nursing care annuity payments commences)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of 0.5 million yen

Contract Date
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009
November 2, 2008
November 2, 2007
November 2, 2006

Assumedinterest rate
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%
1.50%

Years
elapsed1 year
2 years
3 years
4 years
5 years
6 years
7 years

Ongoing
policy(yen)

Policies to which nursing
care applies, ending at
death of policyholder (yen)

0
-

0
0
0
12,692000Note: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows theamount receivable for nursing care or upon death. The number of years elapsed is the number
through November 2, 2013.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount(policy reserve x dividend participation ratio) and interest through November 2, 2013(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 year ended March 31, 2013
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve x Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group annuities and other products, a reserve for policyholders’ dividends is accumulated inaccordance with each product’s characteristics

5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2013
(1) Status of Asset Investments for the Fiscal Year Ended March 31, 2013
1) Investment Environment
During the fiscal year ended March 31, 2013, signs of Japanese economic recovery strengthened toward the second
half. During the first half, the economy benefited from positive factors such as reconstruction demand and increases
in private-sector final consumption expenditure, but overall negative growth continued, as the economy was affectedby weak external demand stemming from territorial disputes with bordering countries and European economic
stagnation. In the second half, with the change of administration in December 2012 the Liberal Democratic Party
indicated clear targets for working with the Bank of Japan to cast off deflation. These moves are prompting recovery,
centering on domestic demand. Another positive factor is the easing of overseas economic deceleration.
Real GDP growth, year on year, was a negative 0.9% for the April–June quarter, negative 3.7% for theJuly–September quarter, positive 0.2% for the October–December quarter and positive 2.54% for theJanuary–March quarteri.
The Japanese bond market showed substantial gains (yields fell). During the first half of the fiscal year, the market
continued its steady rise (yields fell), supported by robust ongoing demand from bond investors from the preceding
fiscal year. Following the dissolution of the Lower House in mid-November, reflationary expectations mounted in
response to Liberal Democratic Party policies to shrug off deflation, and interest rates showed signs of a generalincrease. From February onward, however, expectations of further monetary easing rose on the back of a new Bankof Japan leadership structure, which bolstered the market significantly (yields fell markedly). As of March 31, 2013,
yields on 10-year Japanese government bonds (JGBs) were 0.560%, down 0.425 percentage point from one year
earlier.
Japanese stock markets were lackluster from the first half of the fiscal year through November, affected byterritorial disputes with bordering countries, European economic stagnation, and depressed corporate earnings on theback of further appreciation of the yen against other currencies, with the Nikkei Stock Average trading between¥8,500 and ¥9,500. Following the dissolution of the Lower House in mid-November, expectations of monetaryeasing grew in response to the Liberal Democratic Party’s policies aimed at shrugging off deflation. Profit growth
expectations accordingly mounted at companies reliant on both internal and external demand, prompting a surge in
the Nikkei. Expectations of the Bank of Japan’s fiscal policies led to depreciation of the yen against other currencies,
with overseas stock market increases pushing up stock prices in Japan even further. As of March 31, 2013, theNikkei had risen to ¥12,397.91, up ¥2,314.35 from a year earlier.
In foreign exchange markets, yen appreciation against the U.S. dollar continued in the first half of the fiscal year
through September, with the yen falling to ¥77 against the U.S. dollar at one point in mid-September. After thatpoint, the central banks of Japan, Europe and the United States announced policies on monetary easing, andconcerns about the European debt crisis abated somewhat, encouraging gradual depreciation of the yen against othercurrencies. Following the dissolution of the Lower House in mid-November, mounting expectations of further
monetary easing, an entrenched domestic trade deficit and signs of recovery in the U.S. economy prompted major
depreciation of the yen against the dollar, with the yen entering the neighborhood of ¥96 to the U.S. dollar in March2013 for the first time in three years and seven months. As of March 31, 2013, the yen was trading at ¥94.26 to the
U.S. dollar, approximately ¥12 less than one year earlier.

6

(ii) Investment Policy
For general account assets, we take an investment approach that balances profitability and market risk in our aim toachieve stable investment income and asset soundness. We control the interest rate risk in our portfolio while
investing in bonds, mainly JGBs with long-terms to maturity.

(iii) Results of Investment
As of March 31, 2013, general account assets totaled ¥5,402.1 billion, up 13.0%, or ¥623.5 billion, from a year
earlier. Within general account assets, domestic bond investment totaled ¥4,561.0 billion (accounting for 84.4% of
total general account assets), foreign bonds ¥62.0 billion (1.1%), Japanese stocks ¥31.1 billion (0.6%), monetarytrusts ¥306.1 billion (5.7%), policy loans ¥145.0 billion (2.7%), cash and deposits and call loans ¥103.3 billion(1.9%) and real estate ¥70.3 billion (1.3%).

iApril 10, 2013 ESP Forecast Survey (Japan Center for Economic Research)

7

(2) Portfolio of General Account Assets
Category
Cash and deposits, call loans
Securities repurchased under resaleagreements
Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

1.4(Millions of yen, %)As of March 31, 2013
Amount%103,321
1.9

-

-

-

-

-

-

-

-

288,297
4,114,529
3,975,755
45,052
90,162
59,63230,5293,558
138,90972,96026,986
72,219(214)
4,778,556
42,996

6.0
86.1
83.2
0.9
1.9
1.2
0.6
0.1
2.9
1.5
0.6
1.5
(0.0)
100.0
0.9

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

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

As of March 31, 2012
Amount%64,869Note: Amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

(3) Changes in General Account Assets by Categories(Millions of yen)
Category

For the year ended March 31, 2013

For the year ended March 31, 2012(15,190)

Cash and deposits, call loans
Securities repurchased under resaleagreements
Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign-currency denominated assets

-

-

-

-

-

-

11,821
469,747
475,841(18,958)
15,921
15,420501(3,056)
4,490(2,202)(13,752)(1,580)14453,348
15,45917,824569,218585,292(13,946)(2,733)
2,389(5,123)606
6,195(2,658)(13,261)7,819(21)
623,569(1,239)Note: Amount for real estate is equivalent to the total amount of land,
land buildings and construction in progress.
progress
8

38,452

(4) Investment Income(Millions of yen)

For the year ended
March 31, 2012

Category
Interest income and dividends
Interest income from deposit
Interest income and dividends from securities
Interest income from loans
Income from real estate for rent
Other income from interests 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 sale of JGBs, other bonds
Gains on sale of Japanese stocks
Gains on sale of foreign securities
Other
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Reversal of reserve for possible loan losses
Other investment income
Total

97,960081,245
5,367
11,241
105
－
5,278
－
7,556
4,975
2,333
248
－
－
－
－
－
12
110,807

For the year ended
March 31, 2013
108,539
0
92,1675,450
10,854
67
－
5,259
－
2,420
3
2,066
349
－
－
－
－
－
13
116,232(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2012

Category
Interest expense
Losses on securities under proprietary accounts
Losses from monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Losses on sale of JGBs, other bonds
Losses on sale of Japanese stocks
Losses on sale of foreign securities
Other
Devaluation losses on securities
Devaluation losses on JGBs, other bonds
Devaluation losses on Japanese stocks
Devaluation losses on foreign securities
Other
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

55
－
－
－
2,607
193
2,411
2
－
1,692
－
1,692
－
－
－
－
1,376
2
－
2,330
6,305
14,3709

For the year ended
March 31, 2013
43
－
－
－
1,587
0
412
1,174
－
327
－
327
－
－
－
226
1,176
21
－
2,115
6,188
11,686

(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category
Cash and deposits, call loans

For the year ended
March 31, 2012

For the year ended
March 31, 2013

0.06

0.06

Securities repurchased underresale agreements--

Pledged money for bondborrowing transaction--

Monetary claims purchased--

Securities under proprietaryaccounts--

Monetary trusts

1.97

1.96

Securities

2.14

2.09

JGBs, other bonds

2.22

2.09

Japanese stocks(2.81)

5.98

Foreign securities

1.41

0.93

Loans

3.93

3.86

Real estate

5.16

5.13

Total

2.17

2.12

Overseas investment

1.41

0.93

Notes: 1. The denominator of investment yield calculation is a daily averaged carrying amount, while the numerator isinvestment income minus investment expenses.
2. Valuation gains for Article 112 of Insurance Law is not accounted for.
3. Yield on overseas investment is a total of foreign-currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2012
Category
Trading-purpose securities

As of March 31, 2013

Net valuation gains(losses) recorded inincomeBalance sheet
amount--Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

10

Net valuation gains(losses) recorded inincomeBalance sheet
amount--(iii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)

As of March 31, 2012
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities

As of March 31, 2013

Fair value

3,404,821

Unrealized Unrealized
gains
losses3,560,687

155,865

160,172

4,307

Net unrealized gains (losses)

Carrying
amountFair value

3,874,232

Unrealized Unrealized
gains
losses4,425,970

551,737

551,737-

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

895,142956,125

60,983

61,345

JGBs, other bonds

849,186

902,676

53,49053,490Japanese stocks

29,106

34,970

5,863

6,225

Foreign securities

15,373

16,7701,397

15,373

16,770

1,397

Bonds
Stocks, etc.

-

Other securities

-

1,476

1,708

955,999

1,079,296

123,296

123,344-925,308

1,036,956

111,648

111,648

14,76020,994

6,233

6,281

1,397

-

14,454

18,681

4,226

4,226

-

1,397

-

14,454

18,681

4,226

4,226

-

-

361

361

-

232

-

232

-

1,476

-

-

2,664

1,188

47
47

-

-

1,188

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

4,299,963

4,516,813

216,849

221,518

4,668

4,830,232

5,505,267

675,034

675,082

JGBs, other bonds

4,211,145

4,417,819

206,674

210,9814,307

4,756,200

5,410,686

654,486

654,486

Japanese stocks

29,106

34,970

5,863

6,225

361

14,76020,994

6,233

6,281

Foreign securities

58,23562,314

4,078

4,078

-

57,79570,922

13,126

13,126-58,23562,314

4,078

4,078

-

57,79570,922

13,126

13,126-

Bonds
Stocks, etc.

-

Other securities

1,476

1,708

-

-

232

-

232

-

1,476

-

-

2,664

1,188

47
47

1,188

-

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 Law of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥268,594 million and ¥38,206 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

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

Category

As of March 31, 2013

As of March 31, 2012

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

15,625

12,607Available-for-sale securities

27,09020,372Unlisted Japanese stocks (except OTC stocks)

4

4

Unlisted foreign stocks (except OTC stocks)

1,084

948
-

-

Unlisted foreign bonds
OthersTotal

1126,001

19,41942,71532,980c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b as follows:(Millions of yen)

As of March 31, 2012
Category

Held-to-maturity securities

Net unrealized gains (losses)

Carrying
amountFair value

3,404,821

Policy reserve matching bonds

As of March 31, 2013
Unrealized Unrealized
gains
losses3,560,687-

155,865-

Stocks of subsidiaries andaffiliated companies

15,625

15,625

Available-for-sale securities

160,172
-

-

-

-

-

922,232

982,962

60,72964,330849,186

902,676

53,49053,490Japanese stocks

29,111

34,974

5,863

6,225

Fair value

3,874,232-

JGBs, other bonds

Foreign securities

4,307

Net unrealized gains (losses)

Carrying
amount3,601
361

Unrealized Unrealized
gains
losses4,425,970-

551,737-

551,737

-

-

-

-

-

-

-

12,607

12,607976,372

1,103,708

127,335

128,555

925,308

1,036,956

111,648

111,648

14,76520,998

6,233

6,281

1,219
47

16,45718,024

1,567

1,567

-

15,40320,083

4,679

4,679

-

Bonds

15,373

16,770

1,397

1,397

-

14,454

18,681

4,226

4,226

-

Stocks, etc.

1,084

1,254

169

169

-

948

1,401

452

452

-

Other securities

27,47827,286

(191)

3,047

3,239

20,89525,669

4,774

5,946

1,171

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

4,342,679

4,559,274

216,594

224,503

7,908

4,863,212

5,542,285

679,073

680,292

JGBs, other bonds

4,211,145

4,417,819

206,674

210,9814,307

4,756,200

5,410,686

654,486

654,486

Japanese stocks

39,18845,052

5,863

6,225

361

24,872

31,106

6,233

6,281

Foreign securities

1,219
47

64,867

69,116

4,248

4,248

-

61,24474,823

13,578

13,578

Bonds

58,23562,314

4,078

4,078

-

57,79570,922

13,126

13,126-

Stocks, etc.

6,632

6,801

169

169

-

3,448

3,901

452

452

-

Other securities

27,47827,286

(191)

3,047

3,239

20,89525,669

4,774

-

5,946

1,171

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

12

(iv) Fair value information on monetary trusts(Millions of yen)

As of March 31, 2012
Category

Monetary trusts

Balancesheet
amountFair value

288,297288,297

As of March 31, 2013

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses－－－Balancesheet
amount306,122

Net unrealized gains (losses)
Fair value
306,122

Unrealized Unrealized
gains
losses－－－Note: The table above includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment(Millions of yen)

As of March 31, 2012
Category

Balance sheet amount

As of March 31, 2013

Net valuation
gains (losses)
recorded income－

Monetary trusts for investment

Balance sheet amount－

Net valuation
gains (losses)
recorded income－－

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts(Millions of yen)

As of March 31, 2012

As of March 31, 2013

Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Monetary trusts for policy reserve matching

－

－

－

－

－

－

－

－

－

－

267,887

288,247

20,35920,359－267,865

306,071

38,20638,206－

Other monetary trusts

13

5. Non-consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2012

As ofMarch 31, 2013

AmountAmountAssets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)(Other securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Advance payments
Other
Deferred tax assets
Reserve for possible loan losses

19,80819
19,78856,300288,297
4,545,019
4,071,699
10,48544,035
69,149230,172
119,476
138,909
138,782
127
73,67831,46941,491
207
511
24,257
24,23521
65
49,73627 39027,3901,304
14,600
4,239
355
1,846
26,986(214)

27,37328
27,34497,088306,122
5,211,535
4,669,003
10,20841,092
61,884275,439
153,906
145,104
145,01985
70,96931,08939,212
185
482
26,102
26,092
9100
54,86531 35831,358
1,543
15,377
4,185
379
2,021
13,724(235)

Total Assets

5,222,846

5,952,750

As of
As of
March 31, 2012 March 31, 2013
AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Other payables
Accrued expenses
Unearned income
Deposits received
Deposits received for guarantee
Derivative liabilities
Lease obligations
Asset retirement obligations
Policy suspense and other suspense
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

4,871,182
24,0394,843,020
4,122
1,664
581
38,193
10,2554,750
13,387
931
627
5,459
－
263
642
1,874
20,310168
25,31925,319589

5,501,850
24,646
5,472,930
4,273
2,431
547
49,844
15,586
1,222
14,079
907
1,090
5,307
172
243
656
10,577
22,770171
32,26432,264536

Total Liabilities

4,958,009

5,610,417

Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

70,0005,865
5,865
156,335
13,238143,096
143,096
232,200
34,032(1,395)32,636
264,836
5,222,846

70,0005,865
5,865
187,698
15,478172,219
172,219
263,563
80,283(1,513)78,769342,333
5,952,750

14

6. Non-consolidated Statements of Income(Millions of yen)

For the ｙear ended
March 31, 2012
967,400
816,106
814,654
1,452
133,945
97,960081,245
5,367
11,241
105
5,278
7,556
12
23,137
17,347
2,019
9,380
4,213
1,734
897,964
287,431
68,995
8,577
42,209163,263
2,302
2,082
,
471,553－
471,536
17
14,370
55
2,607
1,692
－
1,376
2
2,330
6,305
105,492
19,116
5,251
7,145
3,232
3,456
25
5
69,436
8,598
24
23
8,550
8,550
－
958
59,87925,7552,697
28,45231 426
31,426

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
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income from deferred payment of claims
Income from reversal of reserve for outstanding claims
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance p
premiums
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Losses on sale of subsidiary's stocks
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Income Taxes -total
Net Income
15

For the year ended
March 31, 2013
1,142,274
925,874
924,472
1,402
199,833
108,539
0
92,1675,450
10,854
67
5,259
2,420
13
83,601
16,566
2,087
11,861－
2,618
1,067,614
293,929
71,0609,571
46,809161,872
2,649
1,965
,
630,529
607
629,90912
11,686
43
1,587
327
226
1,176
21
2,115
6,188
109,060
22,408
7,078
7,929
4,150
3,141
3
105
74,659
8,961
21
962
6,945
6,945
1,031
2,104
63,594
28,774(7,624)
21,14942 44442,444

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2012
Core Profit

A

Capital gains
Income from monetary trusts, net

For the year ended
March 31, 2013

71,68580,045

7,556

2,420

－

－

－

－

Gains on sale of securities

7,556

2,420

Gains on derivatives, net－－

Foreign exchange gains, net－－

Other capital gains

－

－

5,774

3,351

－

－

Income from trading securities, net

Capital losses
Losses on monetary trusts, net－－

Losses on sale of securities

2,607

1,587

Devaluation losses on securities

1,692

327

－

226

1,376

1,176

97

34

Losses on trading securities, net

Losses on derivatives, net
Foreign exchange losses, net
Other capital losses
Net capital gains (losses)

B

1,782

(931)

Core profit plus net capital gains (losses)

A+B

73,468

79,114－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loans losses

－

－

Other

－

－

4,032

4,454

－

－

3,778

4,223

2

21

－

－

－

－

250

209

C

(4,032)(4,454)

A+B+C

69,43674,659Other one-time gains

Other one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificforeign countries
Write-off of loans
Other
Net other one-time gains (losses)
Ordinary Profit

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
include provision of additional policy reserve of ¥209 million.
2. Core profit for the fiscal year ended March 31, 2012 (A) includes income gains of ¥5,278 million in income from monetary trusts;
other capital losses include impairment losses of ¥97 million from investment partnership; "Others" of other one-time losses
include provision of additional policy reserve of ¥250 million.

16

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2012

As of March 31, 2013

Bankrupt and quasi-bankrupt loans--

Doubtful loans--

Sub-standard loans--

Sub-total--[ ] % to total

[- ]

[- ]

141,384

147,608

141,384

147,608

Normal loans
Total

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 obligors (other than bankrupt and quasi-bankrupt obligors) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more and loans with aconcessionary interest rate, as well as loans with renegotiated conditions in favor of the borrower, including renegotiatedschedule and/or waivers, in each case, other than the loans described in notes 1. and 2. above.
4. Normal loans are all other loans.

9. Risk-monitored Loans
Not applicable1710. Solvency Margin Ratio (Current Standard)(Millions of yen)

Category

As of March 31, 2012

As of March 31, 2013

722,175

872,502

Common stock, etc.

223,100

252,363

Reserve for price fluctuations

25,31932,264

Contingency reserve

55,33859,5610

0

Net unrealized gains on other securities (before taxes) multiplied by 90% if
gains or 100% if losses

54,656

114,602

Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses(173)(2,012)

Unallotted portion of reserve for poricyholders' dividends

700

464

Amount excluded from deferred tax assets－－

Deferred tax assets

58,77470,604

Excess of the amount equivalent to policy reserve under Zillmer method

350,404

372,561－－(45,945)(27,907)－－

72,93076,472

Total solvency margin(A)

General reserve for possible loan losses

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

Total risk

(B)

Insurance risk

R1

20,85021,871

Third-sector insurance risk

R8

7,509

8,307

Assumed interest rate risk

R2

28,50929,054

Asset management risk

R326,741

27,592

Minimum guarantee risk

R7

9,904

11,474

Business management risk

R4

1,870

1,966

1,980.4%

2,281.8%

Solvency margin ratio
(A)
x

100

(1/2) x (B)Notes:1. The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insuranceof Japan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

18

11. Status of Separate Account Assets for the Year Ended March 31, 2013
(1) Balance of Separate Account Assets
Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen)

Category

As of March 31, 2012

As of March 31, 2013

AmountAmountIndividual variable life
insurance and individual
variable annuities
Group annuities

550,624444,289-

550,624444,289

Total separate account(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy amount in forcea) Individual variable life insurance(Number: Thousand, Amount: Millions of yen)

Category

As of March 31, 2013

As of March 31, 2012
NumberVariable life insurance（whole life type）
Variable life insurance（limited term type）
Variable life insurance（term type）
Total

AmountNumberAmount552

6,955,907

577

7,113,036

42

142,82843

146,778

1

48,924

1

46,810596

7,147,660

622

7,306,626

Note: Amounts include the rider portion.

b) Individual variable annuities(Number: Thousand, Amount: Millions of yen)

Category
Individual variableannuities

As of March 31, 2013

As of March 31, 2012
NumberAmount28

149,528

NumberAmount27

146,759

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policies for which payments have commenced.

19

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities
Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen, %)Category

As of March 31, 2013

As of March 31, 2012
Amount%Amount%Cash and deposits, call loans

11,2392.5

21,139

3.8

Securities

430,49096.9

527,787

95.9

JGBs, other bonds

150,46433.9

159,256

28.9

Japanese stocks

24,097

5.4

30,778

5.6

Foreign securities

140,01031.5

188,01034.1

Foreign bonds

36,7938.3

44,775

8.1

Foreign stocks, etc.

103,21723.2

143,235

26.0

115,918

26.1

149,741

27.2

Loans

－

－

－

－

Other

2,559

0.6

1,697

0.3

－

－

－

－

444,289100.0

550,624

100.0

Other securities

Reserve for possible loan losses
Total(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities
Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(Millions of yen, %)Category

For the year ended March 31, 2012

For the year ended March 31, 2013

Interest income and dividends

7,405

9,147

Gains on sale of securities

5,690

8,033

163

15

Valuation gains on securities

61,806103,039

Foreign exchange gains, net－－

Gains from derivatives, net－－

Other investment income

20

14,1992,558

Losses on redemption of securities

258

117

Devaluation losses on securities

30,83032,237

Foreign exchange losses, net

6,359

1,390

Losses from derivatives, net－－

Other investment expenses

283

331

Net investment gains (losses)

23,137

83,601

Gains on redemption of securities

Losses on sale of securities2012. Consolidated Summary(1) Key Performance Results(Millions of yen)

Category

For the year ended
March 31, 2012

For the year ended
March 31, 2013

Ordinary Revenues

967,582

1,142,395

Ordinary Profit

68,18772,768Net Income

30,20840,740Comprehensive Income

57,33687,335

Category

As of March 31, 2012

As of March 31, 2013

Total Assets

5,219,990

5,948,190

Solvency Margin Ratio

2,051.5%

2,341.3%(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

0

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method221

(3) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2012

As ofMarch 31, 2013

AmountAmountAssets:As ofMarch 31, 2013

AmountAmountLiabilities:

Cash and deposits

20,59327,373

Call loans

56,30097,088

Monetary trusts

As ofMarch 31, 2012

Policy reserves and others:
Reserve for outstanding claims

5,501,850

24,041

24,646

4,843,297

5,472,930

4,122

4,273

288,297

306,122

4,541,228

5,206,866

Loans

138,931

145,104

Due to agencies

1,664

2,431

Tangible fixed assets

73,69070,969Due to reinsurers

582

547

Land

31,46931,089Other liabilities

38,251

49,844

Buildings

41,492

39,212

Reserve for employees' retirement benefits

20,315

22,770

Leased assets

207

185

Reserve for directors' retirement benefits

Other tangible fixed assets

522

482

Reserve for price fluctuations

Securities

Policy reserves

4,871,461

Reserve for policyholders' dividends

168

171

25,31932,264

Intangible fixed assets

24,257

26,102

Reserve for price fluctuations

25,31932,264

Software

24,23626,092

Deferred tax liabilities on land revaluation

589

536

4,958,352

5,610,417

70,00070,000

Other intangible assets

21

9

65

100

Other assets

49,79954,865Net Assets:

Deferred tax assets

27,03913,833

Common stockReserve for possible loan losses

(214)

(235)

Capital surplus

5,865

5,865

Retained earnings

153,479

183,138

Total shareholders' equity
Net unrealized gains on other securities,
net of taxes
Land revaluation, net of taxes

229,344

259,003

34,14280,283(1,395)(1,513)Foreign currency translation adjustments

(453)

-

Total accumulated other comprehensive
income32,29378,769Due from reinsurers

Total Liabilities

Total Net Assets
Total Assets

5,219,990

5,948,190

Total Liabilities and Net Assets

22

261,637

337,772

5,219,990

5,948,190

(4) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

For the year ended
March 31, 2012
Ordinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
policyholders' dividend reserve
Interest on policyholders
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on sale of fixed assets
Extraordinary Losses
Losses on sale or disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Losses on sale of subsidiary's stocks
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Income Taxes -total
Income Before Minority Interests
Net Income

967,582
816,190134,092
98,071
5,278
7,592
12
23,137
17,300899,395
287,451
69,002
8,577
42,209163,274
4,387
471,593－
471,576
17
14,379
55
2,607
1,692
－
1,373
2
2,330
6,316
105,666
20,304
68,187
0
0
8,598
24
23
8,550
8,550
－
958
58,63025,7552,666
28,42130,20830,20823

For the year ended
March 31, 2013
1,142,395
925,961
200,008
108,612
5,259
2,522
13
83,601
16,425
1,069,627
293,938
71,0659,571
46,809161,873
4,617
630,575
607
629,955
12
11,771
43
1,587
327
226
1,253
21
2,115
6,196
109,204
24,136
72,768
－
－
8,828
21
962
6,945
6,945
899
2,104
61,83528,774(7,679)21,09440,74040,740(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

AmountAmountIncome Before Minority Interest

30,208Other Comprehensive Income

27,12846,594

27,145

46,142Land revaluation, net of taxes

103－

Foreign currency translation adjustments

(122)

453

1

(1)

Net unrealized losses on other securities, net of taxes

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

40,74057,33687,335Comprehensive income attributable to parent company

57,33687,335Comprehensive income attributable to minority interest

－

－

24

(5) Consolidated Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2012

Total solvency margin

As of March 31, 2013

706,777

855,444

Common stock, etc.

220,244247,803

Reserve for price fluctuations

25,31932,264

Contingency reserve

55,33859,561

Catastrophe reserve--

General reserve for possible loan losses

0054,764

114,602(173)(2,012)

700

464

(A)

Net unrealized gains on other securities multiplied by 90% if gains or
100% if losses
Net unrealized gains on real estate multiplied by 85% if gains or 100% if
lossesUnallocated portion of reserve for policyholders' dividends
Amount excluded from deferred tax assets--

Deferred tax assets

58,77470,604

Excess amount of policy reserves based on Zillmer method

350,404

372,561--

The portion of the excess amount of policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(48,801)(32,467)

Deductible items(9,793)(7,938)68 90068,90073 07173,071

Subordinated debt

(B)

Total risk
Insurance risk

R1

20,852

21,871

Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

7,510

8,307

-

-

28,50929,054

9,904

11,474

Third-sector insurance risk

R8

Insurance risk of small-amount short-term insurance providers
Assumed interest rate risk
Minimum guarantee risk

R9

R2
R7

Asset management risk

R322,41523,934

Business management risk

R4

1,783

1,892

100

2,051.5％

2,341.3%

Solvency margin ratio(A)x(1/2) x (B)Notes: 1. The above-stated figures were calculated based on provisions in Articles 86-2 and 88 of the Ordinance for
Enforcement of the Insurance Business Law and FSA Public Notice No. 23 (2011).
2. Minimum guarantee risk was calculated based on the standardized approach.

25

(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of March 31, 2013, are as follows. Sony
Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Othersfacilitated by Sony Life(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOthersSeniorMezzanine
Equity(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(3) Other sub-prime (Alt-A exposure)
Fair value
－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Others26

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Realized gains(losses)
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
Reference:

Unrealized
gains (losses)(100 millions of yen)
Realized gains(losses)

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)(100 millions of yen)
Realized gains(losses)

－
－
－
－
－
－

－
－
－
－
－
－

As of March 31, 2012

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Others

－
－
－
－
－
－

－
－
－
－
－
－

(5) Leveraged financeFair value
Reference:
As of March 31, 2012

Leveraged financeTelecommunications
Electronics
Entertainment
Services
Others

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with Nikkei 225 index-linked coupons (fair market value of ¥52.2 billion andunrealized gains of ¥8.8 billion as of March 31, 2013). These amounts are included in net unrealized gains on other securities,(before taxes) of Sony Life as of March 31, 2013.

27