August 10, 2016
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2016
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

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

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Non-consolidated Solvency Margin Ratio

P.61

1. Balance Sheets(Millions of yen)
As of March 31, 2016

As of June 30, 2016

Assets:Cash and deposits

8,381

8,960

127,256

129,324

Tangible fixed assets

4,024

3,933

Intangible fixed assets

5,988

6,029

Other assets

20,36319,042

Deferred tax assets

6,308

6,684

172,323

173,975

133,246

136,308

Reserve for outstanding losses

37,54237,640Underwriting reserves

95,704

98,667

8,339

7,255

Income taxes payable

1,442

1,062

Others

6,897

6,192

Reserve for employees’ retirement benefits

1,281

1,335

Reserve for directors’ retirement benefits

4432

Reserve for employees’ bonuses

956

493

Reserve for price fluctuations and others

149

156

149

156

144,018

145,581

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained deficits

2,5863,337

Total shareholders’ equity

25,976

26,727Net unrealized gains (losses) on other securities, net oftaxes

2,328

1,666

Total valuation and translation adjustments

2,328

1,666

28,30528,393

172,323

173,975

Securities

Total Assets
Liabilities:
Underwriting reserves

Other liabilities

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

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the three months ended
June 30, 2015
Ordinary Revenues

For the three months ended
June 30, 2016

24,75926,04624,43225,06524,37525,048(Interest and dividends on deposits of premiums)

1316(Reversal of reserve for outstanding losses)

43

Underwriting income(Net premiums written)

Investment income

-315

964

323

333

6

648

(13)

(16)

11

16

22,63623,181

Underwriting expenses

16,59817,032(Net losses paid)

11,268

11,734(Loss adjustment expenses)

1,739

1,805

384

430

(Interest income and dividends)(Gains on sale of securities)(Transfer to interest and dividends on deposits ofpremiums)
Other ordinary income
Ordinary Expenses(Net commissions and brokerage fees)(Provision for reserve for outstanding losses)-(Provision for underwriting reserves)

3,205

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

97
2,963

1-

1-

6,034

6,147

1

1

2,122

2,865

Extraordinary Gains-

Extraordinary Losses

6

Losses on sale or disposal of fixed assets

6-

Provision for reserve for price fluctuations and others

-

0666

6

2,116

2,858

Income Taxes –current

569932Income Taxes –deferred62(118)

Total Income Taxes

632

814

1,484

2,044

Provision for reserve for price fluctuations
Income Before Income Taxes

Net Income33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the three months For the three months
ended
ended
June 30, 2015
June 30, 2016

Change(Amount)

Change(%)

Gross direct premiums written

24,08624,785699

2.9 %(Direct premiums written)

24,08624,785699

2.9

24,43225,065632

2.6

24,37525,048673

2.8

Underwriting expenses

16,59817,032433

2.6(Net losses paid)

11,268

11,734466

4.1(Loss adjustment expenses)

1,739

1,805

65

3.8

384

430

46

12.0

315

964

649

205.4

323

333

9

3.1

6648

642

10,688.7

Underwriting income(Net premiums written)

Ordinary Income (expenses)(Net commissions and brokerage fees)
Investment income(Interest income and dividends)(Gains on sale of securities)
Investment expenses

1-

(1)

(100.0)(Losses on sale of securities)

1-

(1)

(100.0)Operating, general and administrative
expenses

6,034

6,147

112

1.9

6,015

6,133

117

2.0

9155

58.5

2,122

2,865

742

35.0

1,817

1,898

81

4.5

(Operating, general and administrative
expenses related to underwriting)
Other ordinary income, net
Ordinary profit(Underwriting profit)----

Extraordinary Losses

660

Extraordinary gains (losses), net

(6)

(6)

(0)

2,116

2,858

742

35.1

Income taxes -current

569

932

362

63.7

Income taxes -deferred62(118)(180)(288.7)

Total income taxes

632

814

181

28.7

Net Income

1,484

2,044560

37.8

RatiosExtraordinarygains (losses)

Extraordinary Gains

Net loss ratio53.4%

54.1%

Net expense ratio

26.3%

26.2%

Income before income taxes

7.8-Notes:
1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related tounderwriting) ± Other income (expenses) Other income (expenses) is the amount equivalent to the corporate income taxes forcompulsory automobile liability insurance, etc.
2. Net loss ratio=(Net loss paid + Loss adjustment expenses) / Net premiums written × 100
Net expense ratio=(Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) /Net premium written × 10044. Premiums and Losses Paid by Type of Policy(Millions of yen)

Direct Premiums Written

For the three months ended
June 30, 2016

For the three months ended
June 30, 2015
AmountComposition

YoY Change%
Fire

89

MarineComposition

YoY Change%%%

0.4-

Amount42.4-

62-

0.3-

(30.4)--

Personal accident

2,156

9.0

1.0

2,190

8.8

1.6

Voluntary automobile

21,84090.7

4.4

22,53390.9

3.2

Compulsory automobile liability
Total

24,086--100.0-4.2

24,785--

100.0

2.9

(Millions of yen)

Net Premiums Written
For the three months ended
June 30, 2015
AmountComposition

For the three months ended
June 30, 2016

YoY Change%

AmountComposition

YoY Change%%

%

Fire

130.1

51.3

60.0

(47.0)

Marine110.0(78.0)(1)(0.0)(116.4)

Personal accident

2,245

9.2

1.2

2,281

9.1

1.6

Voluntary automobile

21,793

89.4

4.4

22,46889.7

3.1

Compulsory automobile liability

311

1.3

7.6

293

1.2(5.9)

Total

24,375100.0

4.0

25,048100.0

2.8(Millions of yen)

Net Loss Paid
For the three months ended
June 30, 2015
AmountYoY Change

For the three months ended
June 30, 2016

Net loss ratio%

AmountYoY Change

Net loss ratio%%%

Fire0(92.7)

46.1

0

398.2

Marine12(74.6)

108.8

(12)

(203.8)Personal accident

593

9.7

29.2

609

2.7

29.6

10,3590.7

55.2

10,8134.4

55.8

Compulsory automobile liability

303

4.0

97.4

324

6.8

110.6

Total

11,2680.9

53.4

11,7344.1

54.1

Voluntary automobile

585.0-5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2016

As of June 30, 2016

42,70145,51924,682

26,727

Reserve for price fluctuations

149

156

Contingency reserve

9194

Catastrophe reserve

14,363

15,160

-

-

2,910

2,083

Net unrealized gains (losses) on real estate--

Excess refund reserve--

Subordinated debt--

The portion of the excess refund reserve and subordinated debt
that is not included in the margin--

Deductible items

-

-

502

1,297

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

12,313

12,420Ordinary insurance risk

(R1)

10,906

11,026

Third-sector insurance risk

(R2)--Assumed interest rate risk

(R3)

96

98

Asset management risk

(R4)

1,416

1,321

Business management risk

(R5)

269

269

Major catastrophe risk

(R6)

1,033

1,032

693.5 ％

732.9 %(A) Total non-consolidated solvency margin
Capital or treasury

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

Others(B) Total non-consolidated risk(C) Non-consolidated solvency margin ratio
12[(A)/((𝐵𝐵) × )]×100

Note:
The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Actof Japan and Ministry of Finance Public Notice No. 50 of 1996. A part of calculations for non-consolidated solvency margin ratio as ofJune 30, 2016 is calculated according to simplified methods in major catastrophe risk. The figure is assumed to be equivalent to theamount as of March 31, 2016.
〈Non-consolidated Solvency Margin Ratio〉
・ Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted
amounts at maturity on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to pay in theevent of a major catastrophe or a dramatic drop in the value of the assets they hold—risk events outside the normal scope ofexpectations.
・ Total risk (item (B) in the table) indicates dangers outside the general scope of expectations. The non-consolidated solvency
margin ratio (item (C) in the table above) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance
Business Act of Japan, based on its percentage holdings of capital and other reserves (in other words, the total solvency margin:
as indicated by (A) above).
・ “Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks;(1) Insurance underwriting risk (ordinary insurance risk, third-sector insurance risk)
Risk outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risk)(2) Assumed interest rate risk
Risk that actual investment yields will fall below the investment yield assumed when calculating premiums
6

(3) Asset management risk
Risk arising from such factors as unexpectedly large fluctuations in prices on held securities and other assets(4) Business management risk
Unexpected risk to business management other than (1) through (3)above and (5)(5) Major catastrophe risk
Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)
・ Non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capitaland reserves, is the total of the insurer’s net assets (excluding the amount of expected outflow from the company),
reserves (such as the reserve for price fluctuations and catastrophe reserve) and a portion of its net unrealized gains(losses) on real estate.
・ Non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities

to supervise insurers. If this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims
and other payments.

7