May 18, 2012
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2012
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2012

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2012

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2012

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, 2012

P.20

12. Consolidated Summary

P.22

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

P.27

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, 2011
Category

Number% change fromMarch 31, 2010

AmountAs of March 31, 2012
% change fromMarch 31, 2010

Number% change fromMarch 31, 2011

Amount% change fromMarch 31, 2011

Individual life insurance
5,283
106.6
344,218
103.8
5,602
106.0
357,073
103.7
Individual annuities
60
108.5
3,266
106.5
71
118.4
3,697
113.2
Group life insurance
11,987106.3
12,687105.8
Group annuities
589
81.5
578
98.1
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, 2011
Category

For the year ended March 31, 2012

AmountNumberAmount
% YoY
% YoY
% YoY
Increase from
New policies
conversion
changechangechangeIndividual life insurance
592
102.9
41,662
103.7
41,662577
97.5
41,456
Individual annuities
6
105.2
327
103.3
327
13
198.3
576
Group life insurance
149
206.3
149
37
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
change99.5
41,456
176.1
576
24.8
37
-

(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, 2011

% change fromMarch 31, 2010

As of March 31, 2012

% change fromMarch 31, 2011

592,438
12,354
604,793

105.2
119.6
105.5

621,647
13,753
635,401

104.9
111.3
105.1

140,776105.8

148,954

105.8(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, 2011
69,467
1,763
71,230% YoYchange
103.2
121.8
103.6

16,679102.6

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

17,101

102.5

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, 2011

% YoYchangeFor the year ended
March 31, 2012

% YoYchangeIncome from insurance premiums

770,330110.0

816,106

105.9

Investment income

119,500

68.1

133,945

112.1

Insurance claims and other payments

297,966

108.6

287,431

96.5

Investment expenses

19,30393.8

14,37074.4

Ordinary profit

73,176

91.4

69,436

94.9(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2011
4,723,3323% change fromMarch 31, 2010

110.2

As of March 31, 2012
5,222,846% change fromMarch 31, 2011110.6

2. Policy Amount in Force by Insurance Function as of March 31, 2012
(Number: Thousand, Amount: 100 millions of yen)
Total

Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountOrdinary death

4,616

341,545

-

-

2,300

12,686

6,916

354,232

Accidental death799

73,307

-

-

42

42

841

73,350Death protection
with otherconditions

307

14,530

-

-

-

-

307

14,530985

15,527

71

3,697

0

0

1,057

19,225

Accidental
hospitalization

2,495

177

-

-

82

0

2,578

177

Sickness
hospitalization

2,495

177

-

-

-

-

2,495

177

Hospitalization
with otherconditions

871

77

-

-

-

-

871

77

Disability protection

507

-

-

-

82

-

590

-

Surgery protection

1,646

-

-

-

-

-

1,646

-

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category
NumberLiving protection

Category

Amount181

Number578

Total

Amount--Medical protection
insurance
NumberHospitalization
protection

AmountNumberAmount181

578

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, 2012
(1) Standard dividend yields for semi-participating individual life insurance with
policyholder
For the year ended
March 31, 2011

For the year ended
March 31, 2012

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, 2012.
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, 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％

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

Ongoing
policy(yen)

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

6,582
-

0
0
21,9760
6,5820Note: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows theamountreceivable for nursing care or upon death. The number of years elapsed is the number throughN above-statedb 2 2012
2. Thedividend amount is the sum of the pro-rated dividend amount(policy reserve x dividend participation ratio) and interest through November 2, 2012(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 1.05%, using figures for the year ended March 31, 2012.
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, 2012
1) Status of Investment Assets for the Year Ended March 31, 2012(i) Investment Environment
During the year ended March 31, 2012, the Japanese economy was somewhat weak, owing to theimpact of the Great East Japan Earthquake in March 2011. Although the economic growth rate showedsigns of improving temporarily in the summer of 2011 as supply chains were put back in order, theeconomy failed to recover fully, amid concerns about economic recession overseas owing to the impactof the European debt crisis and higher crude oil prices. In addition to electricity supply issues, Japan
continued to face concerns about the impact of ongoing deflation and a worsening employment situation.
Real GDP growth, year on year, was a negative 1.2% for the April–June quarter, positive 7.1% for theJuly–September quarter, negative 0.7% for the October–December quarter, and is estimated at a positive
2.48% for the January–March quarter1.
The Japanese bond market showed substantial gains (yields fell) throughout the fiscal year as global
investors sought out stable assets in the face of a deepening European debt crisis and mounting
concerns of a U.S. economic downturn. Japanese investors, centering on institutional investors, also
increased their investments in Japanese government bonds (JGBs). Toward the second half of the fiscal
year, stock prices began to rebound, reflecting financial easing in the United States, Europe and Japan,
but the effect on JGBs was marginal. As of March 31, 2012, the yield on 10-year JGBs was 0.985%,
down 0.27 percentage point from the end of the previous fiscal year.
In Japanese stock markets, the Nikkei Stock Average fell to ¥8,135.79 at one point in November 2011,
owing to European financial market concerns and uncertain overseas economic conditions, as well as
ongoing yen appreciation. However, owing to financial easing in the United States, Europe and Japan,
the Nikkei rallied significantly in the second half, recovering to the ¥10,000 level in March 2012.
Expectations of domestic reconstruction demand are also seen as one factor behind the rise in stock
prices. As of March 31, 2012, the Nikkei had risen to ¥10,083.56, up ¥328.46 from its level a year earlier.
In foreign exchange markets, yen appreciation against the U.S. dollar continued as during the previous
fiscal year, with the yen appreciating to ¥75 against the U.S. dollar at one point in October 2011.
Thereafter, the yen traded in a range from ¥76 to ¥79 to the dollar for several months, before the Bank ofJapan intervened with monetary easing measures. These caused the trend to reverse, prompting
substantial depreciation of the yen against the dollar. As of March 31, 2012, the yen was trading at¥82.19 against the U.S. dollar, ¥0.96 higher than a year earlier.

(ii) Investment Policy
For general account assets, we take an investment approach that balances profitability and market risk in
our aim to achieve 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.

1

April 12, 2012 ESP Forecast Survey, Japan Center for Economic Research

6

(iii) Results of Investment
As of March 31, 2012, general account assets totaled ¥4,778.5 billion, up 10.5%, or ¥453.3 billion, from ayear earlier. Within general account assets, domestic bond investment totaled ¥3,975.7 billion(accounting for 83.2% of total general account assets), foreign bonds ¥59.6 billion (1.2%), Japanesestocks ¥45.0 billion (0.9%), monetary trusts ¥288.2 billion (6.0%), policy loans ¥138.7 billion (2.9%), realestate ¥72.9 billion (1.5%), and cash and deposits and call loans ¥64.8 billion (1.4%).

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

1.9(Millions of yen, %)As of March 31, 2012
Amount%64,869
1.4

-

-

-

-

-

-

-

-

276,475
3,644,781
3,499,914
64,011
74,24044,21230,027
6,615
134,419
75,162
40,73873,799(228)
4,325,208
27,537

6.4
84.3
80.9
1.5
1.7
1.0
0.7
0.2
3.1
1.7
0.9
1.7
(0.0)
100.0
0.6

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

As of March 31, 2011
Amount%80,059Note: 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, 2011

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

For the year ended March 31, 2012

(36,383)(15,190)

-

-

-

-

(12,296)455,969
466,981(8,514)(1,045)(5,702)
4,657(1,451)
6,819(4,752)
13,052(10,119)(16)
412,273
5,812-

Note: Amount for real estate is equivalent to the total amount of land,
land buildings and construction in progress.
progress
8

11,821
469,747
475,841(18,958)
15,921
15,420501(3,056)
4,490(2,202)(13,752)(1,580)14453,348
15,459(4) Investment Income(Millions of yen)

For the year ended
March 31, 2011

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

For the year ended
March 31, 2012

87,533070,883
5,216
11,37953

97,960081,245
5,367
11,241
105
-

6,983

5,278

24,98223,806
1,113
62

7,556
4,975
2,333
248

-

-

0
1
119,500

12
110,807(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2012

For the year ended
March 31, 2011

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

56

55
-

1,866
7
1,782
77

2,607
193
2,411
2

348

1,692

348

1,692

-

-

23
533
20

1,376
2
-

2,551
6,432
11,832

9

2,330
6,305
14,370(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category
Cash and deposits, call loans

For the year ended
March 31, 2011

For the year ended
March 31, 2012

0.07

0.06

Securities repurchased underresale agreements--

Pledged money for bondborrowing transaction--

Monetary claims purchased--

Securities under proprietaryaccounts--

Monetary trusts

2.55

1.97

Securities

2.70

2.14

JGBs, other bonds

2.80

2.22

Japanese stocks

0.57(2.81)

Foreign securities

0.25

1.41

Loans

3.98

3.93

Real estate

4.43

5.16

Total

2.68

2.17

Overseas investment

0.24

1.41

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, 2011
Category
Trading-purpose securities

As of March 31, 2012

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, 2011
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities

As of March 31, 2012

Fair value

2,914,365

Unrealized Unrealized
gains
losses2,892,180(22,184)

25,51847,703Net unrealized gains (losses)

Carrying
amountFair value

3,404,821

Unrealized Unrealized
gains
losses3,560,687

155,865

160,172

4,307

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

940,112964,374

24,26130,903

6,642

895,142956,125

60,983

61,345

JGBs, other bonds

884,466

904,194

19,72722,921

3,194

849,186

902,676

53,49053,490Japanese stocks

49,85653,706

3,849

7,207

3,357

29,106

34,970

5,863

6,225

Foreign securities

1,919

1,828

(90)

-

90

15,373

16,770

1,397

1,397

-

1,919

1,828

(90)

-

90

15,373

16,770

1,397

1,397

-

Bonds
Stocks, etc.

-

Other securities

-

3,869

4,644

-

-

774

-

774

-

1,476

-

-

1,708

232

361
361

-

-

232

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

3,854,478

3,856,555

2,077

56,422

54,345

4,299,963

4,516,813

216,849

221,518

4,668

JGBs, other bonds

3,756,448

3,749,943(6,505)44,39250,897

4,211,145

4,417,819

206,674

210,9814,307

Japanese stocks

49,85653,706

3,849

7,207

3,357

29,106

34,970

5,863

6,225

361

Foreign securities

44,30348,260

3,957

4,048

90

58,23562,314

4,078

4,078

-

44,30348,260

3,957

4,048

90

58,23562,314

4,078

4,078

-

Bonds
Stocks, etc.

-

Other securities

3,869

4,644

-

-

774

-

774

-

1,476

-

-

1,708

232

232

-

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 ¥268,520million and ¥20,359 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, 2012

As of March 31, 2011

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

15,847

15,625

Available-for-sale securities

27,582

27,090Unlisted Japanese stocks (except OTC stocks)

4

4

Unlisted foreign stocks (except OTC stocks)

1,049

1,084
-

-

Unlisted foreign bonds
OthersTotal

1126,52826,00143,43042,715

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, 2011
Category

Held-to-maturity securities

Net unrealized gains (losses)

Carrying
amountFair value

2,914,365

Policy reserve matching bonds

As of March 31, 2012
Unrealized Unrealized
gains
losses2,892,180-(22,184)-

Stocks of subsidiaries andaffiliated companies

15,847

15,847Available-for-sale securities

25,51847,703Net unrealized gains (losses)

Carrying
amountFair value

3,404,821

-

-

-

-

-

-

Unrealized Unrealized
gains
losses3,560,687-

155,865-

15,625

15,625160,172
-

-

-

-

-

967,695

990,829

23,13332,8209,686

922,232

982,962

60,72964,330JGBs, other bonds

884,466

904,194

19,72722,921

3,194

849,186

902,676

53,49053,490Japanese stocks

49,86153,711

3,849

7,207

3,357

29,111

34,974

5,863

6,225

Foreign securities

4,307

-

3,601
361

2,969

2,807

(162)

-

162

16,45718,024

1,567

1,567

-

Bonds

1,919

1,828

(90)

-

90

15,373

16,770

1,397

1,397

-

Stocks, etc.

1,049

978

(71)

-

71

1,084

1,254

169

169

-

Other securities

30,39730,116

(281)

2,691

2,972

27,47827,286

(191)

3,047

3,239

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

3,897,908

3,898,857

949

58,33957,3894,342,679

4,559,274

216,594

224,503

7,908

JGBs, other bonds

3,756,448

3,749,943(6,505)44,39250,897

4,211,145

4,417,819

206,674

210,9814,307

Japanese stocks

60,16164,011

3,849

7,207

3,357

39,18845,052

5,863

6,225

361

Foreign securities

50,90054,786

3,886

4,048

162

64,867

69,116

4,248

4,248

-

Bonds

44,30348,260

3,957

4,048

90

58,23562,314

4,078

4,078

-

Stocks, etc.

6,597

6,526

(71)

71

6,632

6,801

169

169

-

Other securities

30,39730,116

(281)

2,691

2,972

27,47827,286

(191)

3,047

3,239

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

12

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

As of March 31, 2012

As of March 31, 2011
Category

Monetary trusts

Balancesheet
amountFair value

276,475

276,475

Unrealized Unrealized
gains
lossesBalancesheet
amountFair value-

288,297288,297

Net unrealized gains (losses)--

Net unrealized gains (losses)
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, 2011
Category

Net valuation
gains (losses)
recorded income

Balance sheet amount

Monetary trusts for investment

As of March 31, 2012-

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, 2011

As of March 31, 2012

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-Other monetary trusts

268,610

276,425

7,814

13

7,814

5. Non-consolidated Balance Sheets(Millions of yen)

Assets: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

Total Assets

As ofMarch 31, 2011

As ofMarch 31, 2012

AmountAmount35,10313
35,08968,500276,475
4,017,583
3,548,082
11,32870,61092,691
192,328
102,540
134,419
134,419
76,014
31,46943,693230
621
18,39018,34644
84
56,25034 33534,335
1,248
14,327
4,073
491
1,773
40,738(228)

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)

4,723,332

5,222,846

As of
As of
March 31, 2011 March 31, 2012
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
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

4,404,576
28,252
4,371,484
4,839
1,502
684
65,98019,482
23,492
12,625
956
542
5,518
284
633
2,445
17,596143
16,768
16,768693

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

Total Liabilities

4,507,945

4,958,009

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

70,000
70
000
5,865
5,865
134,008
11,418
122,590
122,590
209,873
7,013(1,499)5,513
215,387
4,723,332

70,000
70
000
5,865
5,865
156,335
13,238143,096
143,096
232,200
34,032(1,395)32,636
264,836
5,222,846

14

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

For the ｙear ended
March 31, 2011
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
Gains on redemption 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 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 redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
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
Cumulative effect on application of accounting
standard for asset retirement obligations
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, 2012

900,091
770,330
768,259
2,070
119,500
87,533070,883
5,216
11,37953
6,983
24,9820
1－
10,260
1,625
7,202
1,432
826,914
297,966
76,5138,224
38,346
170,7161,853
2,312
392 722392,722
6,827
385,87321
19,303
56
1,866
348
23
533
20
2,551
6,432
7,470
99,374
17,548
4,678
6,784
2,754
3,299
25
5
73,176
8,735
22
1,291
7,131
7,131

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
42,209163,2632,302
2,082
471 553
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

290

－

1,257
63,18331,374(8,411)
22,96240 22040,220958
59,87925,7552,697
28,45231 426
31,426

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2011
Core Profit

A

Capital gains
Income from monetary trusts, net

For the year ended
March 31, 2012

56,29571,68526,604

7,556

1,622

Income from trading securities, net-

Gains on sale of securities

24,982

7,556

Gains on derivatives, net--

Foreign exchange gains, net--

Other capital gains--

Capital losses

2,748

Losses on monetary trusts, net

5,774
-

Losses on trading securities, net--

Losses on sale of securities
Devaluation losses on securities

-

1,866

2,607

348

1,692

Losses on derivatives, net-

Foreign exchange losses, net

533

Other capital losses

1,376

-

97

Net capital gains (losses)

B

23,856

1,782Core profit plus net capital gains (losses)

A+B

80,152

73,468Other one-time gains--

Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loans losses

-

-

Other

-

-

Other one-time losses

6,975

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
Other

Ordinary Profit

-

3,062

3,778

20

2

Write-off of loans

Net other one-time gains (losses)

4,032

-

-

-

-

3,893

250

C

(6,975)(4,032)

A+B+C

73,17669,436

Notes: 1. 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.
2. Core profit for the fiscal year ended March 31, 2011 (A) includes income gains of ¥5,361million in income from monetary trusts;"Others" of other one-time losses include provision of additional policy reserve of ¥3,893 million.

16

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2011

As of March 31, 2012

Bankrupt and quasi-bankrupt loans

00Doubtful loans

00Sub-standard loans

00Sub-total00[ ] % to total

[- ]

[- ]

136,809141,384

136,809141,384

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, 2011

As of March 31, 2012

625,790

722,175

Common stock, etc.

200,773

223,100

Reserve for price fluctuations

16,76825,319Contingency reserve

51,55955,33800

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

20,82054,656

Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,002

(173)

334,201

350,404

Unallotted portion of reserve for poricyholders' dividends

1,186

700

Deferred tax assets

63,38858,774

Subordinated debt--

(63,912)(45,945)--

Total solvency margin(A)

General reserve for possible loan losses

Excess of the amount equivalent to policy reserve under Zillmer method

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)

72,76372,930Insurance risk

R1

20,01420,850Third-sector insurance risk

R8

7,269

7,509

Assumed interest rate risk

R227,90228,509Minimum guarantee risk

R7

8,820

9,904

Asset management risk

R3

28,726

26,741Business management risk

R4

1,854

1,870

1,720.0%

1,980.4%

Solvency margin ratio
(A)
x

100

(1/2) x (B)Notes: 1. The above-stated figures as of March 31, 2012 are calculated based on provisions in Articles 86, 87 of the Ordinance ofEnforcement of the Insurance Business Law and the Ministry of Finance Public Notice No. 50 of 1996.
Cabinet Office Ordinance No. 23 (2010) and FSA Public Notice No. 48 (2010) prescribe a revision in the methodsof calculating total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk
measurement stricter and more sensitive).
The above-stated figures as of March 31, 2011 are calculated on the assumption that these changes are appliedat the end of fiscal 2010.
2. Minimum guarantee risk was calculated based on the standardized approach.

18

(Reference) Solvency Margin Ratio (Previous Standard)(Millions of yen)

Category

As of March 31, 2011

Total solvency margin(A)

690,331

Common stock, etc.

200,773

Reserve for price fluctuations

16,768Contingency reserve

51,5590General reserve for possible loan losses
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 losses

20,820
1,002

Excess amount of policy reserves based on Zillmer method

334,201

Unallocated portion of reserve for policyholders' dividends

1,186
628

Future profits
Deferred tax assets

63,388Subordinated debt-

Deductible items-

Total risk

(B)

47,606

Insurance risk

R1

20,014

Third-sector insurance risk

R8

7,269

Assumed interest rate risk

R2

11,573

Minimum guarantee risk

R7

9,025

Asset management risk

R316,822Business management risk

R4

1,294

Solvency margin ratio(A)x

2,900.1%

100(1/2) x (B)Notes: 1. The above-stated figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for
Enforcement of the Insurance Business Law and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

1911. Status of Separate Account Assets for the Year Ended March 31, 2012
(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, 2011

As of March 31, 2012

AmountAmountIndividual variable life
insurance and individual
variable annuities
Group annuities

398,124444,289--

398,124

Total separate account444,289(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, 2011
NumberVariable life insurance（whole life type）
Variable life insurance（limited term type）
Variable life insurance（term type）
Total

As of March 31, 2012

AmountNumberAmount534

6,826,136

552

6,955,907

43

143,89342

142,8281

52,867

1

48,924579

7,022,897

596

7,147,660

Note: Amounts include the rider portion.

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

Category
Individual variableannuities

As of March 31, 2012

As of March 31, 2011
NumberAmount28

154,322

NumberAmount28

149,528

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.

20

(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, 2012

As of March 31, 2011
Amount%Amount%Cash and deposits, call loans

23,544

5.9

11,239

2.5

Securities

372,801

93.6

430,490

96.9

JGBs, other bonds

130,10732.7

150,464

33.9

Japanese stocks

28,6807.2

24,097

5.4

Foreign securities

118,08829.7

140,01031.5

Foreign bonds

38,012

9.5

36,793

8.3

Foreign stocks, etc.

80,07620.1

103,21723.2

95,92524.1

115,918

26.1

Other securities
Loans

-

Other

-

1,778

Reserve for possible loan losses
Total

0.4
-

2,559

-

398,124

100.0

0.6

444,289100.0(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, 2011

For the year ended March 31, 2012

Interest income and dividends

6,663

7,405

Gains on sale of securities

4,416

5,690

119

163

41,20061,806

Gains on redemption of securities
Valuation gains on securities
Foreign exchange gains, net--

Gains from derivatives, net--

Other investment income

4

2

2,987

14,199Losses on redemption of securities

518

258

Devaluation losses on securities

48,77930,830Foreign exchange losses, net

7,308

6,359

Losses from derivatives, net-

Other investment expenses

279

283

Net investment gains (losses)(7,470)23,137

Losses on sale of securities21-

12. Consolidated Summary(1) Key Performance Results(Millions of yen)

Category

For the year ended
March 31, 2011

For the year ended
March 31, 2012

Ordinary Revenues

900,359

967,582

Ordinary Profit

72,172

68,187Net Income

39,22130,208Comprehensive Income

30,54757,336

Category

As of March 31, 2011

Total Assets

As of March 31, 2012

4,721,641

5,219,990-

2,051.5％

Solvency Margin Ratio(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method222

(3) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2011

As ofMarch 31, 2012

AmountAmountAssets:As ofMarch 31, 2012

AmountAmountLiabilities:

Cash and deposits

35,57820,593

Call loans

68,50056,300Reserve for outstanding claims
Policy reserves

Monetary trusts

As ofMarch 31, 2011

Policy reserves and others:

4,404,830

4,871,461

28,26024,041

4,371,731

4,843,297

4,839

4,122

276,475

288,297

4,015,294

4,541,228

Loans

134,439

138,931

Due to agencies

1,502

1,664

Tangible fixed assets

76,02973,690Due to reinsurers

684

582

Land

31,46931,469Other liabilities

66,01838,251

Buildings

43,694

41,492

Reserve for employees' retirement benefits

17,59920,315

Leased assets

230

207

Reserve for directors' retirement benefits

Other tangible fixed assets

635

522

Reserve for price fluctuations

Intangible fixed assets

18,391

24,257

Software

18,34624,236

Securities

Other intangible assets

Reserve for policyholders' dividends

143

168

16,76825,319Reserve for price fluctuations

16,76825,319Deferred tax liabilities on land revaluation

693

589

4,508,240

4,958,352

70,00070,000

44

21

84

65

Other assets

56,314

49,799Net Assets:

Deferred tax assets

40,761

27,039Common stock

(228)

(214)

Capital surplus

5,865

5,865

Retained earnings

132,370

153,479

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

208,235

229,344

6,996

34,142(1,499)(1,395)

Foreign currency translation adjustments

(331)

(453)

Total accumulated other comprehensive
income5,165

32,293Due from reinsurers

Reserve for possible loan losses

Total Assets

4,721,641

5,219,990

Total Liabilities

Total Net Assets

213,401

261,637

Total Liabilities and Net Assets

4,721,641

5,219,990

23

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

For the year ended
March 31, 2011
Ordinary Revenues
Income from insurance premiums
Investment income
Interest income and dividends
Income from monetary trusts, net
Gains on sale of securities
Gains on redemption 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
Interest on policyholders
policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
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

967,582
816,190134,092
98,071
5,278
7,592

900,359
770,401
119,710
87,695
6,983
25,0300
1-

10,248828,186
297,973
76,514
8,224
38,346
170,720
4,167
392,766
6,834
385,910
21
19,389
56
1,867
348
23
618
20
2,551
6,433
7,470
99,537
18,52072,172
0
0
8,735
22
1,291
7,131
7,131

Cumulative effect on application of accounting
standard for asset retirement obligations
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

For the year ended
March 31, 201212
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
-

290

24

1,257
62,17931,374(8,416)
22,95739 221
39,221
39,221

958
58,63025,7552,666
28,42130 20830,20830,208(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

AmountAmountIncome Before Minority Interest

39,22130,208Other Comprehensive Income(8,673)(8,506)27,12827,145

－

103

(168)

(122)

0

1

Net unrealized losses on other securities, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted
for using equity method
Comprehensive Income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interest

30,54757,33630,54757,336-25-

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

Category

As of March 31, 2012

Total solvency margin

706,777(A)

Common stock, etc.

220,244

Reserve for price fluctuations

25,319Contingency reserve

55,338Catastrophe reserve-

General reserve for possible loan losses

0

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 losses

54,764(173)

Excess amount of policy reserves based on Zillmer method

350,404

Unallocated portion of reserve for policyholders' dividends

700

Deferred tax assets

58,774

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(48,801)

D d tibl it
Deductible
items(9 793)(9,793)(B)

Total risk

68,900Insurance risk

R1

20,852

Ordinary insurance risk

R5-

Major Catastrophe risk

R6-

Third-sector insurance risk

R8

7,510

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

R2

R928,509R7

9,904

Asset management risk

R322,415Business management risk

R4

1,783

100

2,051.5％

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.

26

13. (Reference 1) 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, 2012, 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
Other
facilitated by Sony Life

Unrealized
gains (losses)
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(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
EquityOther

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

－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other
27

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2011

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

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2011

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair market value of ¥45.5 billion andunrealized gains of ¥2.6 billion as of March 31, 2012). These amounts are included in "Net unrealized gains (losses)” of Sony Life’s “Fair
Value Information on Securities” as of March 31, 2012.

28