Presentation Materials

Sony Life’s
Market Consistent Embedded Valueas of March 31, 2009

Sony Financial Holdings Inc.
June 1, 2009
Sony Financial Holdings Inc. All Rights Reserved0Contents- Highlight of MCEV
- Trends Surrounding MCEV and Sony Life’s Approaches- Compliance with MCEV Principles- MCEV Results- Reconciliation Analysis
from MCEV at the End of the Previous Fiscal Year- Sensitivity Analysis- (Reference)
Impact on MCEV due to Changes in Assumptions- Appendix

P.2
P.3
P.4
P.5 - 10
P.11 - 17
P.18 - 19
P.20 - 21
P.22 - 27

Disclaimer:
These presentation materials contain statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial HoldingsGroup (the “SFH Group”). Any statements contained herein that pertain to future operating performance and that are not historic facts are forwardlooking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,”“expect,” “forecast,” “predict,” “possibility” and similar words that describe future operating activities, business performance, events or conditions.
Forward-looking statements, whether spoken or written, are based on judgments made by the management of the SFH Group, based on informationthat is currently available to it. As such, these forward-looking statements are subject to various risks and uncertainties, and actual business results
may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place
undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking statements in light of new
information, future events or other findings. The information contained in this presentation does not constitute or form part of any offer for sale orsubscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied
on in connection with any contract or commitment whatsoever.

Sony Financial Holdings Inc. All Rights Reserved1Highlight of MCEV
 Sony Life’s MCEV as of March 31, 2009 was ¥400.9 billion, down ¥415.6 billion from March

31, 2008.
 Regarding the breakdown of MCEV, adjusted net worth as of March 31, 2009, was ¥195.4

billion, down ¥53.1 billion year on year, primarily due to a decrease in unrealized gains orlosses on securities as a result of price decline in stocks and convertible bonds held. Valueof existing business as of March 31, 2009, was ¥205.4 billion, down ¥362.5 billion year on
year. Major causes of the decrease include decreases in interest swap rates and theflattening of the term structure, and increases in the implied volatilities of equity options andinterest swaptions accounting for ¥276.6 billion, an increase in cost of non-hedgeable risks
and an increase in frictional costs due to such changes in the market environment,
accounting for ¥40.1 billion and ¥33.4 billion, respectively.
 Value of new business as of March 31, 2009, was ¥15.4 billion, down ¥32.9 billion year on

year, primarily due to decreases in interest swap rates and the flattening of term structure,and increases in the implied volatilities of equity options and interest swaptions, for thesame reason as value of existing business decreased.
 Sony Life has been working to reduce the duration mismatch risk between assets andliabilities since the year ended March 31, 2008. Going forward, we will continue in these
efforts. We also aim to increase our value of new business to achieve continuous growth incorporate value.

Sony Financial Holdings Inc. All Rights Reserved2Trends surrounding MCEV
and Sony Life’s approaches
Sony Life’s approaches

Trends surrounding MCEV
Life insurers in Europe that are members

 Approaches in the pastof the CFO Forum Nov. 2005:

Commencement of disclosures of Traditional
Embedded Value (TEV), starting from TEV as of March 31,
2005

 Nov. 2008:

Shift of EV disclosures from TEV to Market
Consistent Embedded Value (MCEV), starting from MCEV
as of March 31, 2008
 Started MCEV disclosure as its EV information at

fiscal year end
 Approaches in the future With an aim to achieve continuous growth of corporate

value, taking measures to tasks obtained from MCEV
valuations.
 Major tasks currently recognized by Sony Life is to

reduce interest rate risks
 Specific actions to be taken in the future are Further reduction of the duration mismatch risk

between assets and liabilities
 Review product details by taking liability

characteristics into consideration

Mandatory EV disclosures in compliancewith MCEV Principles has been scheduled.
Disclosures in compliance with MCEV

Principles is expected to spread, particularly
in Europe.
CFO Forum (December 2008)
Decided to conduct a review of the impact of

turbulent market conditions on the MCEV
Principles, as their application could, in suchmarket conditions, lead to misleading results.
Expressed possibilities of partial changes ofthe published MCEV Principles or of theguidance issues based on the review results.
Declared its continuous commitment to MCEV

Principles
CFO Forum announced an update on

progress (May 2009)
Announced press release on their first-phasecollaborative work on the application of its
MCEV Principles in turbulent market conditions
For more details, please see the HP of the
CFO Forum (http://www.cfoforum.nl/)

Sony Financial Holdings Inc. All Rights Reserved

3Compliance with MCEV Principles
 We have calculated our MCEV in accordance with the calculation

methodologies and assumptions in the MCEV Principles. Points of notice
regarding MCEV Principles compliance are as follows.
¾ The calculated value of MCEV is the value for Sony Life only, and not theconsolidated value of our parent company, Sony Financial Holdings Inc.
¾ With respect to Sony Life’s subsidiary, Sony Life Insurance (Philippines)

Corporation and its equity method affiliate, AEGON Sony Life Planning Co.,
Ltd., we have not evaluated their life insurance business but reflected theirbook values in the calculation of adjusted net worth. Values of subsidiary andaffiliated company were not changed in sensitivity tests.
¾ Any calculated values of MCEV are not presented separately by segment ofsubsidiary and affiliated company.
¾ We have calculated adjusted net worth based on Japanese GAAP, not on

International Financial Reporting Standards (IFRS).

Sony Financial Holdings Inc. All Rights Reserved

4

MCEV Results

As ofMarch 31, 2009

As ofMarch 31, 2008

400.9

816.5

(415.6)

Adjusted net worth

195.4

248.5

(53.1)

Value of existing
business

205.4

568.0

(362.5)New business value

15.4

48.2

(32.9)(Billion yen)

MCEVSony Financial Holdings Inc. All Rights Reserved

Change5

MCEV Results (Adjusted net worth)(Billion yen)

As ofMarch 31, 2009

As ofMarch 31, 2008

Change

195.4

248.5

(53.1)

140.7

182.7

(41.9)

Reserve for price fluctuations

3.7

24.1

(20.4)

Contingency reserves

45.5

61.8

(16.3)

Reserve for possible loan losses

0.0

0.0

0.0

Unrealized gains or losses on held-to-maturity
securities

26.7

-

26.7

Unrealized gains or losses on land and buildings

28.9

29.0

(0.1)

Unfunded pension liabilities

(6.8)

(3.5)

(3.2)

Intangible fixed assets(12.2)

(8.1)

(4.1)

Tax effect equivalent of above seven items(31.1)(37.4)

6.3

Adjusted net worth
Total net assets

As ofMarch 31, 2009

As ofMarch 31, 2008

ChangeAdjusted net worth

195.4

248.5

(53.1)

Free surplus(173.8)248.5(422.3)

369.2

-

369.2

Required capitalSony Financial Holdings Inc. All Rights Reserved

6Required capital and free surplus

(2)

600%
SCR

Economic value-based
liabilities(1)

Liabilities

Required capital

AssetsLiabilities

AssetsEconomic value-based
liabilities

As ofMarch 31, 2008

As ofMarch 31, 2009

Required capital
(1)
600%

Reserves

Capital(2)

Adjusted net worth

Required capital 0

SCR

Reserve

CapitalAdjusted net worth

Required capital
Required Capital: Economic value-based liabilities + the larger amount of the following (1) or (2),in excess of statutory policy reserves (excluding contingency reserves)(1)The amount of capital required for a solvency margin ratio of 600%
(The portion in excess of margin included in statutory liabilities）(2)The amount of capital to cover risks based on the internal model=The total amount of technical provision and solvency risk capital stipulated by QIS4 of the EU Solvency II held.

Sony Financial Holdings Inc. All Rights Reserved

7Standard Methodologies described in
QIS4 of EU Solvency II Market Risk
 For equity risk, using a shock of 32% fall in the value
 For currency risk, using a downward shock of 20%
 For interest rate risk, using the interest rate movements pre-defined by each maturityz Interest rate up (from 1.37 times to 1.94 times), Interest rate down ( from -0.31 times to -0.51 times) Combined the above results by using a correlation matrix

 Life Underwriting Risk
 For mortality risk, using a shock of a (permanent) 10% increase in mortality rates for each age.
 For longevity risk, using a shock of a (permanent) 25% decrease in mortality rates for each age.
 For lapse riskz Increase by 50% in the assumed rates of lapsation in all future yearsz Decrease by 50% in the assumed rates of lapsation in all future years

Maximum amount of thesez 30% of the sum of surrender as a mass lapse event

 For expense risk, using a shock of a 10% increase in future expenses compared to best estimate

anticipations, and increasing 1% per annum of the expense inflation rate compared to anticipations
 For disability risk, using a shock of a 35% increase in disability rates for the next year, together

with a (permanent) 25% increase (over best estimate) in disability rates at each age in following
years.

Sony Financial Holdings Inc. All Rights Reserved

8

MCEV Results(Value of existing business)
Breakdown of value ofexisting business
673.1(billion yen)(228.7)(58.5)
205.4

As ofMarch 31,
2009

As of
March 31,2008

Change

205.4

568.0

(362.5)A) Present value ofcertainty-equivalent profit

673.1

810.4

(137.3)B) Time value of options
and guarantees(228.7)(94.8)(134.0)C) Frictional costs(58.5)(16.3)(42.3)D) Cost of non-hedgeable
risks(180.5)(131.5)(49.0)

Value of existing business(180.5)

A

B

C

D

Sony Financial Holdings Inc. All Rights Reserved

9MCEV Results (New business value)
Breakdown of
new business value
62.8

As of
March 31,
2009

As of
March
31, 2008

Change15.4

48.2(32.9)E) Present value ofcertainty-equivalent profit

62.8

76.3

(13.5)F) Time value of options andguarantees(28.1)(13.2)(14.8)G) Frictional costs

(1.7)

(0.7)

(1.0)

H) Cost of non-hedgeable
risks(17.7)(14.2)(3.5)(billion yen)
New business value(28.1)(1.7)
15.4(17.7)E

F

G

H

Sony Financial Holdings Inc. All Rights Reserved

10

Reconciliation analysis from MCEV
at the end of the previous fiscal year (1)Adjusted
net worth

Value fromexisting
business

MCEV as of March 31, 2008
(1) Adjustments to MCEV as of March 31, 2008

248.5
3.0

568.0
-

816.5
3.0

Adjusted MCEV as of March 31, 2008

251.5

568.0

819.5

-

15.4

15.4

（3）Expected existing business contribution (risk free rate)

2.3

16.6

19.0

(4) Expected existing business contribution (in excess of risk free rate)

1.9

15.6

17.5

（5）Transfers from value of existing business and required capital to freesurplus24.5(24.5)-(6) Experience variances

(7.5)

(2.4)

(9.9)

(7) Assumption changes-(27.3)(27.3)(8) Other operating variance

-

(5.8)

(5.8)

(9) Operating MCEV earnings

21.1(12.4)

8.7(10) Economic variances(77.2)(350.2)(427.4)---

Total MCEV earnings(56.1)(362.5)(418.6)MCEV as of March 31, 2009

195.4

205.4

400.9

(Billion Yen)（2）New business value(11) Other non operating varianceSony Financial Holdings Inc. All Rights Reserved

MCEV

11

Reconciliation analysis from MCEV
at the end of the previous fiscal year (2)As ofMarch 31,
2008
816.5

3.0

17.5

(9.9)

19.0

(27.3)

15.4

(5.8)

819.5

(427.4)As ofMarch 31,
2009

400.9

Operating MCEV earnings
MCEV
Adjustments Adjusted
FY08
MCEV
as of
New
as of
March 31,
business
March 31, value
2008
2008

Expected existing Expected existing Experiencevariancesbusinessbusiness
contribution
contribution(risk free rate）(in excess ofrisk free rate）（Billionyen）

AssumptionchangesSony Financial Holdings Inc. All Rights Reserved

Economic
variances
Other

MCEV
as of
March 31,2009

12

Reconciliation analysis from MCEV
at the end of the previous fiscal year (3)(Billion Yen)

Value fromexisting
business

Adjusted net
worth

MCEV

MCEV as of March 31, 2008
(1) Adjustments to MCEV as of March 31, 2008

248.5
3.0

568.0
-

816.5
3.0

Adjusted MCEV as of March 31, 2008

251.5

568.0

819.5

-

15.4

15.4

（2）New business value(1) Adjustment to MCEV as of March 31, 2008

These adjustments reflect changes in dividends paid to shareholders and capital increases. A decrease of ¥7.0 billion
due to dividends paid to shareholders was more than offset by a ¥10.0 billion increase in capital.
(2) New business value
This figure reflects increases resulting from the acquisition of new business during the year ended March 31, 2009.
Please refer to the press release for information concerning the calculation method.

Sony Financial Holdings Inc. All Rights Reserved

13

Reconciliation analysis from MCEV
at the end of the previous fiscal year (4)Adjusted
net worth

Value fromexisting
business（3）Expected existing business contribution (risk free rate)

2.4

16.6

19.0

(4) Expected existing business contribution (in excess of risk free rate)

1.8

15.6

17.5

（5）Transfers from value of existing business and required capital to free surplus

24.5(24.5)-(Billion Yen）

MCEV

(3) Expected existing business contribution (risk-free rate)
This figure includes the release of the portion for the year ended March 31, 2009, of the time value of options andguarantees and allowance for non-hedgeable risks, in addition to the release of the expected existing business
contributions at a risk-free rate from the opening MCEV (as of March 31, 2008).
(4) Expected existing business contribution (in excess of risk-free rate)
This figure reflects the profit expected in excess of the risk-free rate generated by holding assets such as ordinary
corporate bonds, convertible bonds, loans, stocks and real estate. The expected yield used to calculate the expected
existing business contribution in excess of the risk-free rate for the year ended March 31, 2009, was 1.65%, which wasdeveloped by reflecting our view of the market environment and annual investment plans for the year against the asset
balance at the end of the previous fiscal year.
(5) Transfers from value of existing business and required capital to free surplus
This figure indicates changes in the free surplus by transferring the profit for the year ended March 31, 2009, from theexisting business value to the free surplus and from changes in the required capital. The transfer of profit, the first item,
includes the transfer of expected profit that it was assumed would be realized during the year ended March 31, 2009,
under the MCEV calculation as of March 31, 2008, and the transfer of profit for the year ended March 31, 2009,
calculated under the new business value for the year ended March 31, 2009, which is added in (2) above.
The value of MCEV itself does not change as a result of this transfer as the transfer merely constitutes an internal shift
among MCEV components.
Sony Financial Holdings Inc. All Rights Reserved

14Image chart of expected existing
business contribution

Forecast of company’s expected profit(4) Partial portion of (10)Actual figure

Forecast of profit based on risk-free rate
(3)

2008. 3.31

2009. 3.31

Sony Financial Holdings Inc. All Rights Reserved

15

Reconciliation analysis from MCEV
at the end of the previous fiscal year (5)(Billion Yen）

Adjusted net worth

Value from existing business

MCEV(6) Experience variances

(7.5)

(2.4)

(9.9)

(7) Assumption changes-(27.3)(27.3)(8) Other operating variance

-

(5.8)

(5.8)

(6) Experience variances
These variances show the impact on MCEV of the actual versus assumed differences in non-economic expected profit as of March 31, 2008, that it was
assumed would be realized during the year ended March 31, 2009, under the MCEV calculation, and the impact of differences between actual policies
in force as of March 31, 2009, and those that were projected to be in force on March 31, 2008, using persistency assumptions. The primary causes ofchanges in unfunded pension liabilities and intangible fixed assets are reflected in adjusted net worth. These variances reflect the impact of one-time
expenses incurred during the year ended March 31, 2009. Please refer to the press release for information on one-time expenses.
(7) Assumption changes
This figure indicates the impact of changes in the assumptions, mainly on mortality and morbidity rates, lapse and surrender rates and operating
expense rates, in the calculation of MCEV as of March 31, 2009. The figure also reflects the two changes described below, which resulted in a ¥27.3
billion decrease in MCEV. During the year ended March 31, 2009, although actual mortality figures were improved by reflecting recent experience, thevalue of existing business decreased due to the withdrawal of the application of dynamic surrender rates to interest-sensitive whole life insurance, as
described below, and higher lapse and surrender rates as a result of reflecting recent experience. A decrease in the value of existing business means
an increase in the present value of future liability cash flows. This change, in turn, inflates changes in the present value of liability cash flows if theinterest rates are changed, resulting in an increase in required capital based on an internal model.
- Changes in dynamic surrender rates
We have decided not to apply dynamic surrender rates for interest-sensitive whole life insurance for calculating MCEV as of March 31, 2009. Although
we have not identified an explicit correlation between interest rates or account values to minimum guarantees and lapse and surrender rates, we havedeveloped dynamic surrender rates for the calculation of MCEV as of March 31, 2008, by referring to experience with similar products and domestic andoverseas trends. However, if we were to apply dynamic surrender rates to this product in the same manner as for the calculation of MCEV as of March
31, 2008, MCEV as of March 31, 2009, would be higher than the case in which dynamic surrender rates were not applied. Therefore, we have decided
not to apply dynamic surrender rates for this product. Going forward, we will strive to improve dynamic surrender rates for this product by carefully
monitoring experiential data and referring to experience with similar products and trends in Japan and other countries.
- Change in the method of calculating the interest dividend rate for semi-participating products
As we revised the method of calculating interest dividend rates applied during and after April 2009, we have reflected the relevant changes in MCEV
calculations.
(8) Other operating varianceThis figure reflects the impact of model improvements and updates used in calculating MCEV.

Sony Financial Holdings Inc. All Rights Reserved

16

Reconciliation analysis from MCEV
at the end of the previous fiscal year (6)Adjusted net worth

Value fromexisting business(9) Operating MCEV earnings

21.1(12.4)

8.7(10) Economic variances(77.2)(350.2)(427.4)---

Total MCEV earnings(56.1)(362.5)(418.6)MCEV as of March 31, 2009

195.4

205.4

400.9

(Billion Yen）

(11) Other non operating variance

MCEV(9) Operating MCEV earnings
This figure shows the aggregate amount of items (2) through (8).
(10) Economic variances
These variances show the impact of actual to assumed differences in economic assumptions, such as market interest rates and implied
volatilities, that were reflected in the market environment when calculating MCEV as of March 31, 2008, on future values and the impact of
the actual to assumed difference in expected asset investment income that were assumed would be realized during the year ended March 31,
2009, under MCEV as of March 31, 2008.
Major reasons for decreases in the value of existing business from the impact of the former item include decreases in interest swap rates
and a flattening of the term structure, and increases in the implied volatilities of equity options and interest swaptions accounting for ¥276.6
billion, an increase in the allowance for non-hedgeable risks and an increase in the frictional costs of such changes in the market
environment, accounting for ¥40.1 billion and ¥33.4 billion, respectively.
Major causes of decreases in adjusted net worth owing to the impact of the latter are decreases in the prices of stocks and convertible bonds
held.
(11) Other non operating variance
There are no differences based on other factors.

Sony Financial Holdings Inc. All Rights Reserved

17

Sensitivity Analysis(Billion Yen)

Sensitivities
Assumption

Change inAssumption

MCEV

AmountChange% Change

Changes in adjusted net worth within the amount of change
in MCEV are shown in the table below. Of items not
specified in this table, only the value of existing businesshas been changed, while adjusted net worth remains thesame.

No change

400.9

－

－

100bp decrease

107.3(293.6)(73%)

100bp increase

573.2

172.3

43%

Changes in adjusted net worth

10％ decrease

385.1(15.7)(4％)

Assumption

10％ increase

416.8

15.9

4%

25％ increase

398.8

(2.1)

(1%)

25％ decrease

403.9

3.0

1%

Interest swaption
implied volatility

25％ increase

331.3(69.5)(17%)

Maintenanceexpenses

10％ decrease

411.3

10.5

3%

Lapse & surrender
rates

x 0.9

393.1

(7.7)

(2%)

Death protection
products: x 0.95

435.6

34.7

9%

Third-sector andannuity: x 0.95

396.5

(4.4)

(1%)

Morbidity rates

x 0.95

428.6

27.7

7%

Required capital

Statutory required
minimum level

459.2

58.3

15%

Base

Interest rates

Stock / Real estatemarket value

Stock / Real estate
implied volatility

Mortality rates

Change inAssumption

AmountChange100bp decrease

274.8

100bp increase(242.5)

Stock / Realestate market
value

10％ decrease(14.0)

10％ increase

14.2

Stock / Realestate implied
volatility

25％ increase

2.8

25％ decrease(2.8)

Interest rates

Sony Financial Holdings Inc. All Rights Reserved

18

Sensitivity of new business value(Billion Yen)
Assumption

Change in Assumption

New business value

Amount Change% Change

15.4

－

－

100bp decrease(24.6)(39.9)(260%)

100bp increase

40.5

25.1

164%

10％ decrease

15.3

(0.0)

(0%)

10％ increase

15.4

0.0

0%

25％ increase

14.6

(0.7)

(5%)

25％ decrease

16.2

0.8

5%

Interest swaption implied
volatility

25％ increase

7.1

(8.3)

(54%)

Maintenance expenses

10％ decrease

16.5

1.2

8%

Lapse & surrender rates

x 0.9

16.0

0.6

4%

Death protection products: x
0.95

18.0

2.6

17%

Third-sector and annuity: x 0.95

15.0

(0.3)

(2%)

Morbidity rates

x 0.95

18.3

2.9

19%

Required capital

Statutory required minimum
level

17.0

1.6

11%

Base

No change

Interest rates
Stock / Real estate market
value
Stock / Real estate implied
volatility

Mortality rates

Sony Financial Holdings Inc. All Rights Reserved

19

Reference) Impact on MCEV due toChanges in Assumptions (1)Important Notice: Regarding the Reference Information (next slide) Projected MCEV figures in case yield of Japanese government bonds is used in

calculations are outside the scope of opinions from Milliman, Inc*. We have NOT
obtained any third-party evaluations on the correctness of the projected figures.

*Milliman, Inc. was requested by Sony Life to review the methodology, assumptions and calculations used by Sony Life to determine MCEV as of March 31,
2009. Specifically, the scope of its review included the embedded value as of March 31, 2009, the sensitivities, the new business value, and the movement
analysis from the MCEV as of March 31, 2008.

Sony Financial Holdings Inc. All Rights Reserved20Reference) Impact on MCEV due toChanges in Assumptions (2) In case of setting JGB yield as a risk free rate, instead of interest swap rate
(Billion Yen）

JGB

Swap

Difference

MCEV

499.6

400.9

98.7

Adjusted net worth

195.4

195.4

0.0

Free surplus(81.2)(173.8)

92.6

1 year

0.29%

0.75%

Required capital

276.7

369.2

(92.6)

5 year

0.78%

0.97%

304.2

205.4

98.8

10 year

1.34%

1.31%

Present value of certainty-equivalent profit

745.5

673.1

72.3

20 year

1.94%

1.79%

Time value of options and guarantees(219.1)(228.7)

9.6

30 year

2.09%

1.88%

Frictional costs(51.4)(58.5)

7.1

40 year

2.13%

1.89%

Cost of non-hedgeable risks(170.8)(180.5)

9.7

50 year

-

1.92%

23.0

15.4

7.6

Present value of certainty-equivalent profit

68.0

62.8

5.3

Time value of options and guarantees(26.8)(28.1)

1.3

Frictional costs

(1.3)

(1.7)

0.3

Cost of non-hedgeable risks(16.9)(17.7)

0.8

Value of existing business (*1)

New business value (*2)

Term

JGB

Swap

(Data Source: Bloomberg)*1 The value of existing business is the present value of certainty-equivalent profit deducting the time value of options and guarantees, and frictional costs and the cost of
non-hedgeable risks.
*2 Business included in the calculation of new business value is only that acquired during the year ended March 31, 2009, which is consistent with the financial information
we have disclosed, and does not include the value of new business expected to be acquired in the future. The value of new business is the value as of March 31, 2009 andis calculated based on the same assumptions used for the value of existing business on the same date. As the value of new business includes profits and losses from thepoint of sale to the end of March 2009, actual investment gains and losses during the year ended March 31, 2009 are reflected.

Sony Financial Holdings Inc. All Rights Reserved

21

Appendix

Sony Financial Holdings Inc. All Rights Reserved

22

Assumptions
Assumptions are described in the press release. Of the assumptions, some of economic assumptions are shown below.

<Risk-free rate><Implied volatilities of interest swaptions>Term

2009.3.31

2008.3.31

1 year

0.75%

5 year

0.92%

Term ofswap

Term ofoption2009.3.31(JPY)

2008.3.31
(JPY)

0.97%

1.03%

1 year

1 year

38.4%

39.2%

10 year

1.31%

1.45%

5 year

1 year

42.2%

41.8%

20 year

1.79%

2.04%

5 year

5 year

29.7%

26.1%

30 year

1.88%

2.26%

5 year

7 year

25.1%

21.3%

40 year

1.89%

2.34%

5 year10 year

22.0%

18.5%

50 year

1.92%

2.41%

10 year1 year

35.4%

27.9%

10 year

5 year

25.2%

20.0%

10 year

7 year

22.3%

17.5%

*The interest swap rate of Japanese yen is used as a risk-free rate

<Implied volatilities of stocks>Term2009.3.31

2008.3.31

10 year

10 year

20.0%

15.6%

U.S.
S&P

15 year1 year

31.3%

22.1%

15 year

5 year

23.0%

17.4%

15 year

7 year

21.3%

15.7%

15 year

10 year

20.2%

14.5%

Japan
TOPIX

U.S.
S&P

Japan
TOPIX

1 year

34.0%

37.0%

22.9%

24.1%

5 year

31.6%

34.8%

21.7%

25.9%

10 year

31.5%

34.7%

22.6%

28.0%

Sony Financial Holdings Inc. All Rights Reserved

23Comparison of Interest Swap Rates（％）
2.5

09.3.3108.3.31
2

1.5

1

0.5

R
30
Y

R

R
20
Y

40
Y

R
15
Y

3M
6M
1Y
R
2Y
R
3Y
R
4Y
R
5Y
R
6Y
R
7Y
R
8Y
R
9Y
10 R
Y
R

0

(Data Source: Bloomberg)Sony Financial Holdings Inc. All Rights Reserved

24Comparison of JGB Yield Curve（％）
3
09.3.312.5

08.3.31

2

1.5

1

0.5

R
30
Y

R

R
20
Y

40
Y

R
15
Y

3M
6M
1Y
R
2Y
R
3Y
R
4Y
R
5Y
R
6Y
R
7Y
R
8Y
R
9Y
10 R
Y
R

0

(Data Source: Bloomberg)Sony Financial Holdings Inc. All Rights Reserved25Comparison of
JGB yield curve and Interest swap rates（％）
3
JGB yield curve

2.5Interest sw ap rate

2

1.5

1

0.5

R
30
Y

R

R
20
Y

40
Y

R
15
Y

3M
6M
1Y
R
2Y
R
3Y
R
4Y
R
5Y
R
6Y
R
7Y
R
8Y
R
9Y
10 R
Y
R

0

(Data Source: Bloomberg)Sony Financial Holdings Inc. All Rights Reserved

26

〔Reference〕
Sensitivities as of March 31, 2008
(Billion Yen)

Sensitivities
Assumption

Change inAssumption

MCEV

AmountChange% Change

Changes in adjusted net worth within the amount of change
in MCEV are shown in the table below. Of items not
specified in this table, only the value of existing businesshas been changed, while adjusted net worth remains thesame.

No change

816.5

－

－

100bp decrease

526.9(289.6)(35%)

100bp increase

949.3

132.8

16%

Changes in adjusted net worth

10％ decrease

786.4(30.2)(4％)

Assumption

10％ increase

847.0

30.5

4%

25％ increase

815.1

(1.4)

(0%)

25％ decrease

819.1

2.5

0%

Interest swaption
implied volatility

25％ increase

795.6(20.9)(3%)

Maintenanceexpenses

10％ decrease

825.8

9.3

1%

Lapse & surrender
rates

x 0.9

835.0

18.5

2%

Death protection
products: x 0.95

852.3

35.7

4%

Third-sector andannuity: x 0.95

815.0

(1.5)

(0%)

Morbidity rates

x 0.95

839.1

22.6

3%

Required capital

Statutory required
minimum level

831.5

15.0

2%

Base

Interest rates

Stock / Real estatemarket value

Stock / Real estate
implied volatility

Mortality rates

Change inAssumption

AmountChange100bp decrease

147.9

100bp increase(129.8)Stock / Realestate market
value

10％ decrease(28.6)

10％ increase

29.4

Stock / Realestate implied
volatility

25％ increase

4.8

25％ decrease(2.8)

Interest rates

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Sony Financial Holdings Inc.
Corporate Communications & Investor Relations Department
TEL：+81-(0)3-5785-1074

Sony Financial Holdings Inc. All Rights Reserved28