May 14, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2018
<Contents>

1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2018

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2018

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2018

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, 2018

P.20

12. Consolidated Summary

P.21

Disclaimer:This English translation is prepared for the readers' convenience. When there are any discrepancies between original Japanese version
and English translation version, the original Japanese version always prevails.

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, 2017
Category

NumberComparison to
Mar. 31, 2016

AmountAs of March 31, 2018
Comparison to
Mar. 31, 2016

NumberComparison to
Mar. 31, 2017

AmountComparison to
Mar. 31, 2017

Individual life insurance
7,112
103.4
443,133
104.8
7,316
102.9
458,924
103.6
Individual annuities
196
118.2
10,208
119.2
252
128.5
13,609133.3
Group life insurance－
18,510115.7－－
19,201
103.7－
Group annuities
－
－
115
88.4
－
－
100
86.8
Notes:
1. The policy amount in force for individual annuities are 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 policy reserves for policies for which payments havecommenced.
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, 2017
Category

Individual life insurance
Individual annuities
Group life insuranceGroup annuities

Number479
34－－

Comparison
to FY2015
82.7
68.0
－
－

Amount47,652
1,922
474－

Amount,Amount,of which,of which,increase fromnew policies
conversion
97.8
47,652
－
68.6
1,922
－
4,468.6
474－－

Comparison
to FY2015

For the year ended March 31, 2018
Category

NumberComparison
to FY2016

AmountAmount,Amount,of which,of which,increase fromnew policies
conversion
103.1
49,121
－
195.5
3,758
－
122.9
582
－
－

Comparison
to FY2016

Individual life insurance
478
100.0
49,121
Individual annuities
61
177.9
3,758
Group life insurance－－
582
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(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

As of March 31, 2017

Comparison to
Mar. 31, 2016

As of March 31, 2018

Comparison to
Mar. 31, 2017

787,005
33,851820,856

104.7
114.8
105.1

807,437
41,386
848,823

102.6
122.3
103.4

187,449

104.3

191,895

102.4(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

For the year ended
March 31, 2017
72,786
5,340
78,127Comparison
to FY2015
95.4
61.5
91.9

15,718100.0

For the year ended
March 31, 2018
63,875
9,197
73,073Comparison
to FY2016
87.8
172.2
93.5

12,984

82.6

Notes:
1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on thepayment methods, thereby converting the figure to a per-year premium. (For single payment policies, premiums are divided by the number of coverage
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

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2017

Comparison
to FY2015

For the year ended
March 31, 2018

Comparison
to FY2016

Income from insurance premiums

956,733

93.1

1,059,269

110.7

Investment income

245,339143.9

243,293

99.2

Insurance claims and other payments

372,407102.5

436,538

117.2

Investment expenses

36,196154.7

33,121

91.5

Ordinary profit

60,18099.056,338

93.6(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2017
8,873,613

3

Comparison to
Mar. 31, 2016

110.4

As of March 31, 2018
9,567,689

Comparison to
Mar. 31, 2017107.8

2. Policy Amount in Force by Insurance Function as of March 31, 2018
(Number: Thousand, Amount: 100 millions of yen)
Category

Individual life insurance

Total

Individual annuities

Group life insurance

NumberNumberAmountNumberAmountAmountOrdinary death

6,090

440,281

－

－

1,608

19,201

7,698

459,482

Accidental death680

59,407

－

－

12

3

692

59,411

Death protection
with otherconditions

319

11,140

－

－

－

－

319

11,1401,226

18,643

252

13,609

0

0

1,479

32,253

Accidental
hospitalization

2,731

182

－

－

14

0

2,746

182

Sickness
hospitalization

2,731

182

－

－

－

－

2,731

182

Hospitalization
with otherconditions

831

69

－

－

－

－

831

69

Disability protection

754

－

－

－

14

－

768

－

Surgery protection

1,694

－

－

－

－

－

1,694

－

Death protection

NumberLiving protection
Hospitalization protection

Category
Living protection

Category
Hospitalization
protection

AmountAsset-formation insurance,
asset-formation annuities

Group annuities
NumberAmount75

100

NumberAmount－－Medical protection
insurance

Total
NumberAmount75

Category

NumberAmount－－100

Disability insurance
NumberDisability protection－

Amount－Notes:
1. The numbers of policies for group life insurance products, and group annuity product reflects the total numbers of 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 time annuity 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 benefits for hospitalization.

4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2018
(1) Standard dividend yields for semi-participating individual life insurance with policyholder dividends
every five years
For the year
For the year
ended
ended
March 31, 2017 March 31, 2018
Level-premium

Assumed interest rates of 1.00% or less
Assumed interest rates of more than 1.00%,
2.00% or less
Assumed interest rates of more than 2.00%

0.70%

0.70%

1.55%

1.55%

1.40%

1.40%

0.35%

0.35%

1.20%

1.20%

1.05%

1.05%

Single premium and others

Assumed interest rates of 0.85% or less
Assumed interest rates of more than 0.85%,
2.00% or less
Assumed interest rates of more than 2.00%(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuity payments commence) using figures for the year ended March 31, 2018.
Example: Semi-participating whole life nursing-care insurance (before nursing care annuity payments commences)Entered at 30, male, single premium payment, 10x death benefit, basic care annuity amount of 0.5 million yen(sales suspension in July 2016)

Contract Date

Assumedinterest rate

November 2, 2015
November 2, 2014
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009
November 2, 2008

Years
elapsedOngoing
policy(yen)

3 years
4 years
5 years
6 years
7 years
8 years
9 years
10 years

1.00%
1.00%
1.00%
1.50%
1.50%
1.50%
1.50%
1.50%

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

－
－
¥38,563－－－－¥0¥22,818¥30,629¥38,563
¥0
¥0
¥0
¥0
¥0

Note:
1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable fornursing care or upon death. The number of years elapsed is the number through November 2, 2018.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount (policy reserve × dividend participation
ratio) and interest through November 2, 2018 (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 0.75%, using figures for the fiscal year ended March 31, 2018
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve × Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group term life insurance and other products, a reserve for policyholders’ dividends isaccumulated in accordance with each product’s characteristics

5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2018
(1) Status of Investment Assets for the Year Ended March 31, 2018
1) Investment Environment
During the fiscal year ended March 31, 2018, the Japanese economy grew gradually. Exports grew, spurred by thefavorable overseas economy, sustaining an economic expansion has now surpassed the length of the Izanagi
economic boom (1965–1970). Capital investment expanded on the back of improved corporate performance andbusiness sentiment, and personal consumption was firm, driving by an improved employment environment andwage increases. Price rises remained near zero, with the core consumer price index increasing 0.5% year on year.
Year on year, real GDP growth was positive 2.4% p.a. for the April–June 2017 quarter, positive 2.4% p.a. for theJuly–September quarter and positive 1.6% p.a. for the October–December quarter. The growth rate is forecast at
positive 0.56% p.a. for the January–March 2018 quarter.1
The Japanese bond market was characterized by long-term interest rates remaining in a narrow range. Affectedby the Bank of Japan’s (BOJ’s) buying operations as part of its policy of controlling the yield curve, yields on
10-year Japanese government bonds (JGBs) ranged near the BOJ’s target of zero, with tight supply and demand
resulting in an inactive market. As of March 31, 2018, the long-term interest rate was 0.043%, down 0.024
percentage point from a year earlier.
Stock market performance was up. In September 2017, Prime Minister Abe dissolved the House ofRepresentatives and announced a general election, which the Liberal Democratic Party won. The stock market
interpreted this result to mean political stability, which buoyed share prices. Thereafter, the Nikkei Stock Averagerose further on a steady stream of positive financial results announcements in Japan and the United States, and in
January 2018, the Nikkei rose to the ¥24,000 level for the first time in 26 years. Late that same month, however,share prices fell following US President Trump’s State of the Union speech, and up to the end of the fiscal year, theNikkei moved in a narrow range around ¥21,000. As of March 31, 2018, the Nikkei was ¥21,454.30, up ¥2,545.04
from a year earlier.
Foreign exchange markets moved within a range. Investors increasingly sought to hedge risk in response togeopolitical risk and political uncertainty in Japan and overseas, causing the yen to move to and fro in a range
between ¥108 and ¥114 to the US dollar in the first half of the fiscal year. Thereafter, in January a statement by the
US Secretary of the Treasury was read as permissive of a weaker dollar, as well as resignations by a number ofsenior government officials, caused the dollar to fall to around ¥104 at one point. This was followed by a market
rebound, leading to a March 31, 2018 exchange rate of ¥106.24 to the US dollar, finishing with the yen slightly
higher than the ¥112.19 to the US dollar as of March 31, 2017.
2) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of
the characteristics of insurance liabilities and prioritizing investments in assets that have corresponding
characteristics. Specifically, as life insurance policies represent long-term liabilities, we invest primarily inultralong-term JGBs that have a long term remaining until maturity. This approach allows us to appropriately

1

ESP Forecast Survey, Japan Center for Economic Research

6control the risks associated with interest rate fluctuations on insurance liabilities. Meanwhile, we limit ourinvestments in risky investments such as equities.
3) Results of Investment
As of March 31, 2018, general account assets totaled ¥8,438.8 billion, up 7.0%, or ¥554.8 billion, from a year earlier.
Within general account assets, Japanese bonds (including JGBs) totaled ¥7,281.1 billion (accounting for 86.3% of
total general account assets), foreign bonds ¥366.5 billion (4.3%), Japanese stocks ¥38.4 billion (0.5%), money heldin trust ¥270.5 billion (3.2%), policy loans ¥189.4 billion (2.2%), real estate ¥92.3 billion (1.1%), and cash and cash
deposits and call loans ¥40.8 billion (0.5%).

7

(2) Portfolio of General Account Assets
Category(Millions of yen, %)As of March 31, 2017
AmountAs of March 31, 2018%

Cash and deposits, call loans

Amount%40,896

0.5

40,862

0.5

Securities repurchased under resale agreements

－

－

－

－

Pledged money for bond borrowing transaction

－

－

－

－

Monetary claims purchased

－

－

－

－

Securities under proprietary accounts

－

－

－

－

273,877

3.5

270,582

3.2

7,173,927

91.0

7,717,905

91.5

Money held in trust
Securities
Japanese bonds (including JGBs)

6,828,743

86.6

7,281,144

86.3

Japanese stocks

37,6590.5

38,4640.5

Foreign securities

305,8463.9

396,910

4.7

Bonds

274,306

3.5

366,571

4.3

Stocks, etc.

31,5390.4

30,3390.4

Other securities

1,678

0.0

1,385

0.0

Loans

180,374

2.3

189,486

2.2

Real estate

117,525

1.5

92,346

1.1

Deferred tax assets

5,350

0.1

10,787

0.1

Other assets

92,3281.2

117,195

1.4

Reserve for possible loan losses

(271)

(0.0)

(295)

(0.0)

Total

7,884,008

100.0

8,438,872

100.0

Of which, foreign-currency-denominated assets

309,0463.9

409,863

4.9

Note: The 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, 2017

Cash and deposits, call loans

For the year ended March 31, 2018(11,655)(33)

Securities repurchased under resale agreements－－

Pledged money for bond borrowing transaction－－

Monetary claims purchased－－

Securities under proprietary accounts－－

Money held in trust(7,095)(3,295)

Securities

694,591

543,978

477,566

452,401

Japanese stocks

4,294

805

Foreign securities

212,705

91,064

Japanese bonds (including JGBs)

204,172

92,264

Stocks, etc.

8,533

(1,199)Other securities

24

(292)

Loans

8,725

9,112

Real estate

1,708(25,178)

Deferred tax assets

5,350

5,437

Other assets

7,297

24,867

1

(23)

Total

698,923554,864

Of which, foreign-currency-denominated assets

217,228

100,817

Bonds

Reserve for possible loan losses

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

8(4) Investment Income(Millions of yen)

For the year ended
March 31, 2017

Category
Interest income and dividends

For the year ended
March 31, 2018148,284

Interest income from deposits

157,72700130,772

140,435

Interest income from loans

6,377

6,610

Income from real estate for rent

10,86910,285265

395

Interest income and dividends from securities

Other income from interests and dividends
Gains on securities under proprietary accounts－－

Income from money held in trust, net

4,493

4,490

Income from trading securities, net

152

2

1,308

0

20

0

Gains on sale of securities
Gains on sale of Japanese bonds (including JGBs)
Gains on sale of Japanese stocks, etc.

－

－

1,287

－

－

－

Gains on redemption of securities－

1

Gains on derivatives, net－－

Gains on sale of foreign securities
Other

Foreign exchange gains, net

14,670－

Reversal of reserve for possible loan losses

1－

Other investment income

4138

168,915

162,361

Total(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2017

Category

For the year ended
March 31, 2018

Interest expense

44

151

Losses on securities under proprietary accounts－－

Losses on money held in trust, net－－

Losses on trading securities, net－－

Losses on sale of securities－

0

Losses on sale of Japanese bonds (including JGBs)－－

Losses on sale of Japanese stocks－－

Losses on sale of foreign securities

－

0

Other

－

－

－

－

Devaluation losses on Japanese bonds (including JGBs)－－

Devaluation losses on Japanese stocks－－

Devaluation losses on foreign securities

－

－

Other

－

－

Devaluation losses on securities

Losses on redemption of securities

53

2

Losses on derivatives, net

30,05011,403Foreign exchange losses－

15,280

Provision for reserve for possible loan losses－

23

Write-off of loans－－

Depreciation of real estate for rent and others

1,879

1,770

Other investment expenses

4,167

4,487

36,19633,121Total
9

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

Category

For the year ended
March 31, 2017

For the year ended
March 31, 2018

Cash and deposits, call loans

0.00

0.00

Securities repurchased under resale agreements--

Pledged money for bond borrowing transaction--

Monetary claims purchased--

Securities under proprietary accounts--

Money held in trust

1.94

1.93

Securities

2.19

1.68

Japanese bonds (including JGBs)

1.88

1.81

Japanese stocks

2.80

3.22

Foreign securities

13.41(1.21)

Loans

3.64

3.60

Real estate

5.52

5.86

1.81

1.63

13.25

(1.19)Total
Of which, overseas investment
Notes:

1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment
income minus investment expenses.
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are 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, 2018

As of March 31, 2017
Category
Trading-purpose securities

Net valuation gains(losses) recorded inincomeBalance sheet
amount
2,054

(162)

10

Net valuation gains(losses) recorded inincomeBalance sheet
amount-(31)

(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, 2017
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities
Policy-reserve-matching bonds

As of March 31, 2018

Fair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses

6,068,671

7,514,255

1,445,584

1,521,504

75,9196,467,997

8,050,644

1,582,646

1,640,383

57,736277,372

303,356

25,98327,876

1,893

401,958

436,842

34,88435,9391,055

Stocks of subsidiaries and affiliated companies

－

－

－

－

－

－

－

－

－

－

896,527

1,069,920

173,392

174,667

1,274

921,995

1,091,187

169,192

172,541

3,349

Japanese bonds (including JGBs)

852,604

1,013,331

160,726

160,726－

847,062

1,002,106

155,044

155,044-

Japanese stocks

13,68527,082

13,396

13,45558

13,68530,66816,982

17,00825

Foreign securities

30,071

29,193

(878)

337

1,215

61,081

58,125(2,955)

368

3,323

18,545

17,996

(548)

337

886

49,39846,689(2,709)

368

3,077

－

329

11,682

11,436

(245)

－

245

Available-for-sale securities

Bonds
Stocks, etc.

11,525

11,196(329)

Other securities

165

313

147

147

－

165

286

120

120

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

7,242,571

8,887,532

1,644,961

1,724,048

79,087

7,791,950

9,578,673

1,786,723

1,848,865

62,142

6,942,338

8,595,523

1,653,185

1,707,293

54,108

7,397,136

9,185,284

1,788,148

1,827,186

39,037

Total
Japanese bonds (including JGBs)
Japanese stocks

13,68527,082

13,396

13,45558

13,68530,66816,982

17,00825

Foreign securities

286,381

264,612(21,768)

3,151

24,920380,962

362,434(18,528)

4,550

23,078

Bonds

274,855

253,416(21,439)

3,151

24,590369,280

350,998(18,282)

4,550

22,832

Stocks, etc.

11,525

11,196

(329)

－

329

11,682

11,436

(245)

-

245

Other securities

165

313

147

147

－

165

286

120

120

－

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 Act of Japan.
2. Carrying amount and net unrealized gains (losses) on money held in trust, including items other than trading-purpose securities, amounted to ¥232,404 million and ¥41,919 million as of March 31, 2017, respectively,
and amounted to ¥232,484 million and ¥38,552 million as of March 31, 2018, respectively.

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

Category

As of March 31, 2017

As of March 31, 2018

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

16,312

15,926

Available-for-sale securities

9,896

7,719

Unlisted domestic stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

608

590

Policy-reserve-matching bonds

Unlisted foreign bonds
Others
Total

11

－

－

9,127

6,968

26,20923,645

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, 2017
Category

Held-to-maturity securities
Policy-reserve-matching bonds

As of March 31, 2018

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses

6,068,671

7,514,255

1,445,584

1,521,504

75,9196,467,997

8,050,644

1,582,646

1,640,383

57,736277,372

303,356

25,98327,876

1,893

401,958

436,842

34,88435,9391,055

Stocks of subsidiaries and affiliated companies

16,312

16,312－－－

15,92615,926－－－

Available-for-sale securities

906,423

1,083,838

177,414179,270

1,856

929,714

1,103,060

173,345

176,918

3,572

Japanese bonds (including JGBs)

852,604

1,013,331

160,726

160,726－

847,062

1,002,106

155,044

155,044－

Japanese stocks

13,84527,242

13,396

13,45558

13,84530,82816,982

17,00825

Foreign securities

30,68030,947

266

1,482

1,215

61,671

59,702(1,968)

1,354

3,323

Bonds

18,545

17,996

(548)

337

886

49,39846,689(2,709)

368

3,077

Stocks, etc.

12,134

12,950

815

1,145

329

12,27313,013

740

986

245

Other securities

9,293

12,317

3,024

3,606

581

7,134

10,422

3,287

3,510

222

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

7,268,780

8,917,763

1,648,982

1,728,652

79,6697,815,596

9,606,473

1,790,876

1,853,241

62,365

6,942,338

8,595,523

1,653,185

1,707,293

54,108

7,397,136

9,185,284

1,788,148

1,827,186

39,037

Japanese stocks

22,20835,605

13,396

13,45558

21,482

38,464

16,982

17,00825

Foreign securities

Total
Japanese bonds (including JGBs)

294,940

274,316(20,623)

4,296

24,920389,842

372,301(17,541)

5,536

23,078

Bonds

274,855

253,416(21,439)

3,151

24,590369,280

350,998(18,282)

4,550

22,832

Stocks, etc.

20,08420,900

815

1,145

329

20,562

21,302

740

986

245

Other securities

9,293

12,317

3,024

3,606

581

7,134

10,422

3,287

3,510

222

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

12

(iv) Fair value information on money held in trust(Millions of yen)

As of March 31, 2018

As of March 31, 2017
Category

Balancesheet
amountFair value

Money held in trust

273,877

273,877

Unrealized Unrealized
gains
lossesBalancesheet
amountFair value－

270,582

270,582

Net unrealized gains (losses)－－

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses－－－Note: The above table includes jointly invested money held in trust, amounted to ¥50 million as of March 31, 2017 and amounted to ¥40 million as of March 31, 2018, respectively.

Money held in trust for investment(Millions of yen)

As of March 31, 2017
Category

As of March 31, 2018

Balance sheet amount

Net valuation
gains (losses)
recorded in income

Balance sheet amount

Net valuation
gains (losses)
recorded in income

－

－

－

－

Money held in trust for investment

Money held in trust for held-to-maturity and policy-reserve-matching and other(Millions of yen)

As of March 31, 2017

As of March 31, 2018

Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized
gains

Unrealized
lossesMoney held in trust for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust for policy-reservematching

－

－

－

－

－

－

－

－

－

－

231,907273,826

41,91941,919－231,989

270,541

38,55238,552－Other money held in trust135. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2017 March 31, 2018
AmountAmountAmountAssets:Cash and deposits
Cash
Deposits

As of
As of
March 31, 2017 March 31, 2018
AmountLiabilities:
47,016

53,6832－

47,01353,683

Policy reserves and others
Reserve for outstanding claims
Policy reserves

8,606,736

32,96535,176

7,929,944

8,566,075

5,729

5,484

2,616

1,873

Call loans

61,90065,500

Money held in trust

273,877

270,582

Due to agencies

8,093,192

8,765,967

Due to reinsurers

3,663

5,497

6,664,639

6,966,434

Other liabilities

353,812

386,099

Securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds

1,767

1,543

310,466

461,015

Reserve for policyholders' dividends

7,968,639

Payable under repurchase agreements
Collateral for securities lending transactions－

31,696

310,608

303,889
13,478Japanese stocks

86,95488,376

Accrued income tax

8,095

Foreign securities

782,064

959,188

Other payables

2,137

3,249

Other securities

247,299

289,408

Accrued expenses

17,923

20,325

180,374

189,486

Unearned revenue

1,067

764

180,339

189,460

Deposits received

2,094

1,237

34

25

Deposits received for guarantee

5,420

4,202

118,441

93,169Variation margins of futures markets

446

2,194

Land

83,00762,259Derivative liabilities

614

1,410

Buildings

34,44230,087

Lease obligations

10

6

10

5

2,156

1,856

Loans
Policy loans
Commercial loans
Tangible fixed assets

Leased assets

Asset retirement obligations

Construction in progress

75－

Other tangible fixed assets

906

816

Reserve for employees' retirement benefits

Intangible fixed assets

19,35623,210Reserve for directors' retirement benefits

Software

19,347

23,201

Reserve under the special laws

Other intangible fixed assets

Suspense receipt

3,235

1,787

24,67826,656

119－46,00547,9299

8

Reserve for price fluctuations

46,00547,929Due from agencies

0－

Deferred tax liabilities on land revaluation

488

109

Due from reinsurers

1,393

929
8,400,024

9,074,902

Other assets
Other receivables

74,24592,18435,31637,411

Total Liabilities

Prepaid expenses

1,651

1,983

Net Assets:

Accrued income

18,621

19,627

Common stock

70,00070,000Capital surplus

5,865

5,865

Money on deposits

5,269

5,428

Initial margins of futures markets

7,302

18,324

435

892

5,212

7,969

370

470

Variation margins of futures markets
Derivatives
Advance payments
OthersCapital reserve
Retained earnings

5,865

5,865

271,416

294,424

Earned reserve

30,31834,938Other retained earnings

241,098

259,486

Unappropriated retained earnings

65

75

241,098

259,486

Prepaid pension costs

2,376

2,483

Total shareholders' equity

347,281370,289

Deferred tax assets

5,350

10,787Net unrealized gains (losses) on other securities, net of taxes

127,772

124,936

Reserve for possible loan losses

(271)

(295)

Reserve for investment losses(3,640)－8,873,613

9,567,689

Land revaluation, net of taxes(1,465)(2,439)Total valuation and translation adjustments

126,307

122,497

Total Net Assets
Total Assets

Total Liabilities and Net Assets

14473,589

492,7878,873,613

9,567,689

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

For the year ended
March 31, 2017
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 money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Gains on redemption of securities
Foreign exchange gains, net
Reversal for reserve for possible loan losses
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income for deferred payment of 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
Losses on redemption of 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
Losses on separateaccounts, net
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
OthersOrdinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Reversal of reserve for investment losses
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve under the special laws
Provision for reserve for price fluctuations
Valuation losses on stock of equity method affiliated companies
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes －Current
Income Taxes －Deferred
Total Income Taxes
Net Income
15

1,243,739
956,733
954,0282,704
245,339
148,2840130,772
6,377
10,869
265
4,493
152
1,308
－
14,6701
476,423
41,666
3,001
33,8794,785
1,183,558
372,407
84,17812,01998,252
168,409
3,122
6,423
596,7423,330
593,411
0
36,19644－53
30,050
－
－
1,879
4,167
－
137,094
41,11819,88912,171
5,299
3,745
12
60,180
－
－
－
5,445
52
7
1,744
1,744
－
3,640
4,153
50,581
18,973(3,577)
15,39535,185For the year ended
March 31, 2018
1,351,076
1,059,269
1,056,725
2,544
243,293
157,7270140,435
6,610
10,285
395
4,490
2
0
1
－
－
138
80,93248,513
5,065
39,5373,910
1,294,738
436,538
92,342
12,566
119,294
199,2633,314
9,756
638,3432,211
636,1310
33,121151
0
2
11,403
15,280
23
1,770
4,487
－
139,937
46,79625,487
12,647
5,376
2,981
304
56,33816,89813,258
3,640
6,190
89
0
1,924
1,924
4,176
3,271
63,774
23,224(4,583)18,64045,134

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2017
Core Profit

A

For the year ended
March 31, 2018

83,831

81,384

16,114

9,894

Income from money held in trust, net－－

Income from trading securities, net

134－

Gains on sale of securities

1,308

0

Gains on derivatives, net－－

14,670

－

－

9,894

32,27627,357

Losses on money held in trust, net－－

Losses on trading securities, net－

8

Losses on sale of securities－

0

Devaluation losses on securities－－

30,05011,403－

15,2802,226664Capital gains

Foreign exchange gains, net
Other capital gains
Capital losses

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

B(16,162)(17,463)Core profit plus net capital gains (losses)

A+B

67,66963,9201－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loans losses

1－

Others

－

－

7,490

7,582

－

－

7,296

7,451

Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificforeign countries

－

23

－

－

Write-off of loans

－

－

193

107

C

(7,488)(7,582)

A+B+C

60,18056,338Other one-time gains

Other one-time losses
Losses from reinsurance
Provision for contingency reserve

OthersNet other one-time gains (losses)
Ordinary Profit

Notes:
1. Core profit for the fiscal year ended March 31, 2018 (A) includes income gains of ¥4,490 million in income from money held in trust andinterest income and dividends of ¥11 million in income from trading securities, net; other capital gains include reversal of policy reserves
and others of ¥9,894 million for currency fluctuations of foreign currency dominated products and impairment losses of ¥664 million frominvestment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥107 million.
2. Core profit for the fiscal year ended March 31, 2017 (A) includes income gains of ¥4,493 million in income from money held in trust andinterest income and dividends of ¥17 million in income from trading securities, net; other capital losses include total of provision of policy
reserves and others of ¥1,560 million for currency fluctuations of foreign currency dominated products and impairment losses of ¥665 million
from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥193 million.

16

8. Loans by Borrower Category(Millions of yen, %)Category

As of March 31, 2017

As of March 31, 2018

Bankrupt and quasi-bankrupt loans－－

Doubtful loans－－

Sub-standard loans－－

Sub-total－－[% to total]

[－]

[－]

431,372

428,359

431,372

428,359

Normal loans
Total

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization,
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) 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 (excluding loans
described in notes 1. and 2. above) and loans on which terms and conditions have been amended in favor of the borrowers(e.g. reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt waiver)in order to support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2. above andloans on which principal and/or interest are past due for three months or more).
4. Normal loans are all other loans.

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

Category

As of March 31, 2017

As of March 31, 2018

1,176,229

1,233,854

Common stock, etc.

324,181

344,039

Reserve for price fluctuations

46,00547,929Contingency reserve82,46389,91500

Net unrealized gains on other securities (before tax deductions) and net
deferred gains or losses on hedging instruments (before tax deductions)
x 90% (100% if losses)

159,672

156,011

Net unrealized gains on real estate x 85% (100% if losses)

30,847

29,830

－

－

442

377

Deferred tax assets

82,98088,661

Excess amount of policy reserves based on Zillmer method

495,984

525,389－－

The portion of the excess amount of policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(42,891)(43,128)

Deductible items(3,457)(5,171)(B)

91,576

94,030Insurance risk

R1

24,16924,337

Third-sector insurance risk

R8

8,541

8,587

Assumed interest rate risk

R2

31,35632,452

Minimum guarantee risk

R718,14020,137

Asset management risk

R333,55432,953Business management risk

R4

2,315

2,369

2,568.8%

2,624.3%

Total solvency margin(A)

General reserve for possible loan losses

Amount excluded from deferred tax assets
Unallotted portion of reserve for policyholders' dividends

Subordinated debt

Total risk

( R1  R8 ) 2  (R2  R3  R7 ) 2  R4

Solvency margin ratio
(A)/

B

100

Notes:
1. The figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance BusinessAct of Japan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk is calculated based on the standardized approach.

18

(Reference) Consolidated Solvency Margin Ratio
Although Sony Life is not required to prepare consolidated financial statements since it does not have consolidated subsidiaries, Sony Life
discloses consolidated solvency margin ratio consolidated with it's affiliated companies quarterly.
(Millions of yen)

Category

As of March 31, 2017

Total solvency margin(A)

As of March 31, 2018

1,162,007

1,217,876

Common stock, etc.

322,640

340,820

Reserve for price fluctuations

46,00547,929Contingency reserve82,46389,915

Catastrophe reserve－－

General reserve for possible loan losses

00

Net unrealized gains on other securities (before tax deductions) and net
deferred gains or losses on hedging instruments (before tax deductions) x
90% (100% if losses)

159,672

156,011

Net unrealized gains on real estate x 85% (100% if losses)

30,847

29,830Total amount of unrecognized net actuarial gain and unrecognized priorservice cost

(3,565)(2,419)Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

－

－

442

377

Deferred tax assets

82,98088,661

Excess amount of policy reserves based on Zillmer method

495,984

525,389

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(44,432)(46,347)

Deductible items(11,031)(12,290)(B)

88,30291,362

Insurance risk

R1

24,16924,337

Ordinary insurance risk

R5

－

－

Major Catastrophe risk

R6

－

－

Third-sector insurance risk

R8

8,541

8,587

Insurance risk of small-amount short-term insurance providers

R9

－

－

Total risk

R12+R52+R8+R9)2+(R2+R3+R7)2+R4+R6

Assumed interest rate risk

R2

31,35632,452

Minimum guarantee risk

R718,14020,137

Asset management risk

R330,09930,149Business management risk

R4

2,246

2,313

2,631.8%

2,666.0%

Solvency margin ratio
(A)/

B

100

Notes:
1. The figures are calculated based on provisions in Articles 86-2 and 88 of the Ordinance for Enforcement of the Insurance Business Act of Japanand Public Notice of Financial Services Agency No. 23 of 2011.
2. Minimum guarantee risk was calculated based on the standardized approach.

1911. Status of Separate Account Assets for the Year Ended March 31, 2018
(1) Balance of Separate Account Assets(Millions of yen)

Category

As of March 31, 2017

As of March 31, 2018

AmountAmountIndividual variable life insurance andindividual variable annuities

989,605

1,128,817－－

989,605

1,128,817

Group annuities
Total separate accountNote: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

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

As of March 31, 2017
NumberAmountAs of March 31, 2018
NumberAmountVariable life insurance (whole life type)845

8,680,668

843

8,384,508

Variable life insurance (limited term type)97

421,300

122

628,240

Variable life insurance (term type)1

38,7166

301,218944

9,140,684

972

9,313,967

Total
Note: Amounts include the rider portion of variable life insurance.

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

As of March 31, 2017
NumberAs of March 31, 2018

Amount106

600,331

NumberAmount
162

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 forwhich annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

20

945,144(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)Category

As of March 31, 2017
AmountAs of March 31, 2018%

Amount%Cash and deposits, call loans

68,020

6.9

78,321

6.9

Securities

919,26592.9

1,048,062

92.8

Japanese bonds (including JGBs)

148,130

15.0

147,849

13.1

Japanese stocks

49,294

5.0

49,911

4.4

Foreign securities

476,21848.1

562,27749.8

Foreign bonds

68,315

6.9

77,3506.9

Foreign stocks, etc.

407,90241.2

484,92743.0

245,62124.8

288,022

25.5

Loans

－

－

－

－

Other

2,320

0.2

2,434

0.2

－

－

－

－

989,605

100.0

1,128,817

100.0

Other securities

Reserve for possible loan losses
Total

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities(Millions of yen, %)Category

For the year ended March 31, 2017 For the year ended March 31, 2018

Interest income and dividends

14,498

16,526

Gains on sale of securities

22,21130,392

21

32

Valuation gains on securities

215,402258,562

Foreign exchange gains, net－－

Gains on derivatives, net－－

Other investment income

0

0

1,001

1,937

37

83

Devaluation losses on securities

169,842

221,586

Foreign exchange losses, net

4,021

719

Losses on derivatives, net－－

Other investment expenses

806

253

Net investment gains (losses)

76,42380,932

Gains on redemption of securities

Losses on sale of securities
Losses on redemption of securities

Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

12. Consolidated Summary
Not applicable21