【Presentation Material】

Consolidated Financial Results
for the Six Months
Ended September 30, 2019
andSony Lifeʼs MCEV
as of September 30, 2019Sony Financial Holdings Inc.
November 12, 2019

I am Kiyomiya from Sony Financial Holdings.
I would like to explain about consolidated financial results for FY19.1H
followed by this presentation material.

AGENDA
Consolidated Operating Results for the Six Months Ended September 30, 2019
(FY19.1H)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)P. 18

Sony Lifeʼs MCEV as of September 30, 2019

P. 20

Appendix

P. 23

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual 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. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to 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 in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “‒” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Six Months Ended
September 30, 2019
(FY19.1H)

Highlights of Consolidated Financial Results In each of the three main businesses, ordinary revenues and ordinary profit

for FY19.1H outpaced our expectations, and consolidated operating
performance is progressing ahead of our forecasts.

 At Sony Life, lower sales of family income insurance in FY19.1H caused thenew policy amount to decrease year on year. Insurance acquisition costs fell
mainly due to the lower new policy amount, leading to a year-on-yearincrease in ordinary profit.

In FY19.2Q (3M), new business value and the new business margin were
down from FY19.1Q (3M), mainly owing to a decline in U.S. dollar interest
rates and changes in the product mix.
In FY19.2H, we expect new business value to be higher than in FY19.1H,
thanks in part to contributions from corporate products, on which werecommenced sales in August.
 At Sony Assurance, sales of automobile insurance were robust.
 At Sony Bank, mortgage loans drove performance.
Copyright © Sony Financial Holdings Inc. All rights reserved.

4

I would like to explain some points about the Sony Financial Groupʼs financial
results for FY19.1H.
In each of the three main businesses, ordinary revenues and ordinary profit
for FY19.1H outpaced our expectations, and consolidated operating
performance is progressing ahead of our forecasts.
At Sony Life, lower sales of family income insurance in FY19.1H caused thenew policy amount to decrease year on year. Insurance acquisition costs fell
as a result, leading to a year-on-year increase in ordinary profit.
In FY19.2Q (3M), new business value and the new business margin were
down from FY19.1Q (3M), mainly owing to a decline in U.S. dollar interest
rates and changes in the product mix.
In FY19.2H, we expect new business value to be higher than in FY19.1H,
thanks in part to contributions from corporate products, on which werecommenced sales in August.
At Sony Assurance, sales of automobile insurance were robust, and mortgage
loans drove performance at Sony Bank.

Highlights of Consolidated Operating Performance◆ Ordinary Revenues︓
Increased 3.9% year on year, to ¥894.4 billion, owing to increases in ordinary revenues fromall the businesses: life insurance, non-life insurance and banking businesses.
◆ Ordinary Profit︓
Increased 26.4% year on year, to ¥59.6 billion, owing to increases in ordinary profit from all
the businesses mentioned above.

Ordinary Profit

Ordinary Revenues

9,000

860.8

+3.9%

894.4

8,000

500

47.2

＋26.4%

59.6

400

7,000
6,000

300

5,000
4,000

200

3,000
2,000

100
(JPY bn)(JPY bn)
1,000
0

0

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

Next, I would like to explain about consolidated operating performance.
Ordinary revenues increased 3.9% year on year, to ¥894.4 billion.
Ordinary profit increased 26.4% year on year, to ¥59.6 billion.
Next, I would like to explain about operating performance ofSony Life.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓
Increased 3.5% year on year, to ¥806.8 billion, due to higher insurance premium revenue,
mainly from single premiums insurance, despite a decrease in net gains on investments in theseparate account.
◆ Ordinary Profit︓
Rose 29.0% year on year, to ¥48.6 billion, as costs related to the acquisition of new policies
fell due to a decline in the new policy amount and profit rose in tandem with expansion of thepolicy amount in force.

Ordinary Profit

Ordinary Revenues
779.2

＋3.5%

806.8

500
400

＋29.0%

48.6

37.7

300
200
100
(JPY bn)(JPY bn)0

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Sony Lifeʼs ordinary revenues increased 3.5% year on year, to ¥806.8
billion, due to higher insurance premium revenue, mainly from single
premium insurance, despite a decrease in net gains on investmentsin the separate account.
Ordinary profit rose 29.0% year on year, to ¥48.6 billion, as costs related
to the acquisition of new policies fell due to a decline in the new policy
amount and profit rose in tandem with expansion of the policy amount inforce.

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓
Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓
Increased due to a favorable sales of U.S. dollar-denominated insurance despite a lower sales ofterm life insurance and variable life insurance for corporate customers.
Annualized Premiums from New Policies

Number and Amount of New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

Annualized premiums from new policies
Of which, third-sector

New policy amount
Number of new policies (Thousands of policies)

293
240

+6.8%

313

＋1.8%

32.3

3.15
2.53

2.23

(19.7%)(JPY bn)(JPY tn)

FY17.1H

38.6

37.9

FY18.1H

FY19.1H

5.9
FY17.1H

7.3(14.6%)

FY18.1H

6.2
FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

7（Left-hand graph）
New policy amount for the total of individual life insurance and individual
annuities decreased 19.7% year on year, to ¥2,536.4 billion, due tolower sales of family income insurance.
The number of new policies increased 6.8% year on year,
to 313 thousand policies.
（Right-hand graph）
Annualized premiums from new policies increased 1.8% year on year, to¥38.6 billion, due to a favorable sales of U.S. dollar-denominatedinsurance despite lower sales of term life insurance and variable life
insurance for corporate customers .
Of which, the figure for third-sector products decreased 14.6%
year on year, to ¥6.2 billion.

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.69

7.84

48.5

49.5

+1.9%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

8.00

864.6

889.3

194.9

197.5

Sep. 18

Mar. 19

903.2
+1.6%

50.3
+1.5%

(JPY bn)(JPY tn)

Sep. 18

Mar. 19

Sep. 19

+1.0%

199.4

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Sony Lifeʼs policy amount in force which reflects new policy amount andlapse and surrender amount, are shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities increased 1.5% from March 31, 2019,to ¥50.3 trillion.
The number of policies in force increased 1.9% from March 31, 2019, to¥8 million polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 1.6% from March
31, 2019, to ¥903.2 billion.
Of which, the figure for third-sector products was up 1.0% from March
31, 2019, to ¥199.4 billion.

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓
Down due to a decrease in cancellation of policies, with certain customers cancelling existing
policies and, taking out new family income insurance and other policies, as premiums wererevised in line with revision to the standard mortality tables in February 2018.

Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

1H

6.06
4.97
3.36

(1.11pt)

2.25

1.93

（%）

FY2017FY2018FY2019*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
Copyright © Sony Financial Holdings Inc. All rights reserved.

9

The lapse and surrender rate was down 1.11 percentage points year on
year, to 2.25%.
The fall in the lapse and surrender rate was due to a decrease incancellation of policies, with certain customers cancelling existing policies
and, taking out new family income insurance and other policies, aspremiums were revised in line with revisions to the standard mortality
tables in February 2018.

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓
Remained essentially flat year on year due to an increase in the provision of policy reserves
for minimum guarantees for variable life insurance despite an increase in profit owing to
growing policy amount in force.

Core Profit and Adjusted Core Profit
Core profit

Adjusted core profit

57.8

600

(0.6%)

49.6

43.8

57.5
52.6

(JPY bn)
Positive spread

+6.1%

38.6

◆ Details of core profit

300

FY17.1H

FY18.1H

FY19.1H

9.3

8.7

9.0

Provision of policy reserve forminimum guarantees for variable
life insurance (*)

(4.0)

(0.4)

(4.1)

Adjusted core profit (**)

38.6

49.6

52.6

*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) ‒ (Positive spread) ‒ (Provision of policy reserves
for minimum guarantees for variable life insurance)(JPY bn)0

FY17.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

10Core profit remained essentially flat year on year, to ¥57.5 billion, due toan increase in the provision of policy reserves for minimum guarantees
for variable life insurance despite an increase in profit owing to growing
policy amount in force.

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓
Increased due to an increase in gains on hedges of variable life insurance in addition to a factor
in core profit.
Core Profit and Ordinary Profit
Core profit

Ordinary profit

57.8

600

43.8
400

(0.6%)+29.0%

57.5
48.6

37.7

26.0
200

(JPY bn)0

FY17.1H

FY18.1H

FY19.1H◆ Difference from core profit
FY17.1H

FY18.1H

FY19.1HCore profit

43.8

57.8

57.5

Capital gains (losses) excluding gains
or losses on hedges (*)

(5.6)

(3.3)

(0.4)

Gains (losses) on hedges of variable
life insurance (**)

(8.5)

(12.3)(3.6)

Provision of contingency reserve (***)

(3.6)

(4.4)

(4.6)

Others

(0.0)

(0.0)

(0.0)

Ordinary profit

26.0

37.7

48.6

(JPY bn)*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable life
insurance on the previous page.
*** Provision of contingency reserve is described as negative amount.

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Ordinary profit increased 29.0% year on year, to ¥48.6 billion, due to anincrease in gains on hedges of variable life insurance, in addition to afactor in core profit.

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
(28)

5,142

5,135

5,147

5,106

5,164

5,119

5,116
+3

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

The number of Lifeplanner sales employees as of September 30, 2019,was 5,119, up 3 from June 30, 2019 and down 28 from September 30,
2018.
Sony Life will work to expand its business scale through stringent
recruiting of Lifeplanner sales employees and further enhancing theirproductivity.
Next, I would like to explain about operating performance of Sony
Assurance.

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues and Ordinary Profit :Ordinary revenues expanded 5.0% year on year, to ¥60.6 billion, and ordinary profit
increased 5.9% year on year, to ¥5.7 billion, due mainly to an increase in net premiums
written for mainstay automobile insurance.

Ordinary Profit

Ordinary Revenues

57.7

＋5.0%

60.6
5.4

5.7

＋5.9%

(JPY bn)(JPY bn)

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

Ordinary revenues expanded 5.0% year on year, to ¥ 60.6 billion, due
mainly to an increase in net premiums written for mainstay automobile
insurance.
Ordinary profit increased 5.9% year on year, to ¥5.7 billion.

13

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of mainstay automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others600

53.7

Ordinary profit

Personal accident insurance

56.5

Adjusted ordinary profit

7.6

7.2

59.3
6.2

＋4.9%

＋6.1%

5.7

5.4

4.5

＋5.9%

400

xx
200

(JPY bn)0

FY17.1H

FY18.1H

FY19.1H*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)（Reference) Provision for catastrophe reserve

0

FY17.1H

FY18.1H

FY19.1H

Note: Most of personal accident insurance is medical insurance.

（JPY bn） FY17.1H

FY18.1H

FY19.1H

1.7

1.7

1.9

Provision for catastrophe reserve

Note: Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14(Left-hand graph)
Net premiums written increased 4.9% year on year, to ¥59.3 billion due
to stable sales of mainstay automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amount of provision(reversal) for catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥7.6 billion.

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓
Remained essentially flat due to a decline in E.I. loss ratio, driven mainly by a car accident ratio
despite an increase in expense ratio.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

86.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）
Net loss ratio

Net expense ratio

86.2

86.3

79.8

(0.1pt)

（%）

81.4

79.7
＋1.7pt

60.6

59.6

61.2

26.6

25.1

25.6

FY17.1H

FY18.1H

FY19.1H(0.6pt)Net expense ratio

55.8

53.2

54.6

26.6

25.1

25.6

FY17.1H

FY18.1H

FY19.1H＋1.2pt+0.5pt+0.5ptNotes:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums x100
[Earthquake insurance and compulsory automobile liability insurance are excluded.]（%）

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written x100
Net expense ratio = Expenses related to underwriting / Net premiums written x100
Copyright © Sony Financial Holdings Inc. All rights reserved.

15(Left-hand graph)
The sum of two ratios (E.I. loss ratio + net expense ratio) remained
essentially flat year on year, to 86.2%, due to a decline in E.I. loss ratio,
driven mainly by a lower car accident ratio despite an increase in
expense ratio.
(Right-hand graph)
The net loss ratio was up 1.2 percentage points year on year, to 55.8%.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses and claims.
The combined ratio (the sum of the net loss ratio and the net expense
ratio) was up 1.7 percentage points year on year, to 81.4%.
Next, I would like to explain about operating performance of Sony Bank.

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓
Ordinary revenues expanded 11.5% year on year, to ¥24.5 billion, and ordinary profit was up
20.6% year on year, to ¥5.6 billion, due to increases in such income as interest on loans in linewith a growing balance of mortgage loans and higher interest income on investment securities.
Ordinary Profit

Ordinary Revenues

22.0＋11.5%＋20.6%

24.5

5.6

4.6

(JPY bn)(JPY bn)

FY18.1H

FY19.1H

FY18.1H

FY19.1H

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

In consolidated basis, ordinary revenues increased 11.5% year on year,to ¥24.5 billion, due to increases in such income as interest on loans inline with a growing balance of mortgage loans and higher interest income
on investment securities.
Ordinary profit increased 20.6% year on year, to ¥ 5.6 billion, for thesame reasons as ordinary revenues.

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓
Increased due to an increase in newly accumulated funds via the increased number of accounts.
・Foreign Currency Deposits︓
Increased due mainly to an increase in U.S. dollar deposits in line with appreciation of Japanese yen.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
Investment trusts
Foreign currency deposit
Yen deposits
Number of accounts (Millions of accounts)
1.52
+0.04

30,00025,0001.47

1.35
2,343.0
123.7

20,000404.6

2,483.3
124.3

419.6

150

2,553.0
123.6

+69.7

449.3

1,596.3

1301,814.7

1,939.3

1,979.9

Others1,839.3

1,744.1
53.7

70.7

48.4*

*Corporate loans+95.2

of ¥30.6 billion,
Card loans of¥17.7 billion.

110
90

15,00010,000Mortgage loans

1,525.570

1,690.3

1,790.950

5,000(JPY bn)(JPY bn)
030Mar. 18

Mar. 19

Sep. 19

Mar. 18

Mar. 19

Sep. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

17(Left-hand graph)
As of September 30, 2019, customer assets amounted to¥2,553.0 billion, up ¥69.7 billion from March 31, 2019.
Of this amount, the yen deposit balance amounted to¥1,979.9 billion, up ¥40.6 billion from March 31, 2019, due mainly to anincrease in newly accumulated funds via the increased number ofaccounts.
The yen-denominated balance of foreign currency deposits amounted to¥449.3 billion, up ¥29.7 billion from March 31, 2019, due mainly to anincrease in U.S. dollar deposits in line with appreciation of Japanese yen.
(Right-hand graph)
The loan balance as of September 30, 2019 expanded ¥95.2 billion fromMarch 31, 2019, to ¥1,839.3 billion, due to a steady increasein mortgage loans.
This conclude the explanation of the results of three companies.

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

Forecast of Consolidated Financial Results for FY2019
Forecast of consolidated financial results for FY2019 is unchanged from the forecast
announced on April 26, 2019.
We maintain our full-year forecasts, taking into consideration the business environment from FY19.2H
onward, although ordinary revenues and ordinary profit exceeded our expectation in FY19.1H for
all three core businesses.
(JPY bn)
Ordinary revenues

FY2018（Actual）

FY2019（Forecast）

Change1,629.1

1,690.0+3.7%

1,464.3

1,520.5+3.8%

Non-life insurance business

115.1

121.2

+5.3%

Banking business

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

Banking business

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Life insurance business

Ordinary profit

Profit attributable to ownersof the parents※ As we announced on June 28, 2019, Sony Life is expected to acquire shares in two joint ventures,
AEGON Sony Life Insurance and SA Reinsurance. As a result, they will be converted to wholly owned
subsidiaries of SFH and Sony Life. The above forecast of financial results includes the impact of this conversion,
which is expected to be slight.

Copyright © Sony Financial Holdings Inc. All rights reserved.

19

Forecast of consolidated financial results for FY2019 is unchanged fromthe forecast announced on April 26, 2019.
Next, I would like to explain about Sony Lifeʼs MCEV as of September 30,
2019.

Sony Lifeʼs MCEV
as of September 30, 2019

Some parts of the calculations of MCEV adopted simplified method expect for those as of March 31, 2019.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of September 30, 2019 increased ¥40.6 billion from June 30, 2019, due mainly to a change
in interest rates and acquisition of new policies.
◆ New Business Value / New Business Margin
・New business margin for FY19.2Q (3M) was down 1.6pt from FY19.1Q (3M), mainly owing to
a decline in U.S. dollar interest rates and changes in the product mix.
・New business value for FY19.2Q (3M) was ¥14.8 billion, due mainly to a decline in new businessmargin.

（JPY bn）

MCEV

Mar. 19

Jun. 19

Sep. 19

ChangefromMar. 19

ChangefromJun. 19

1,720.2

1,651.2

1,691.9(28.3)+40.6

Adjusted net worth

2,195.7

2,432.0

2,498.9+303.1+66.9

Value of existing business(475.5)(780.7)(807.0)(331.5)(26.3)（JPY bn）

FY18.4Q(3M)

FY19.1Q(3M)

FY19.2Q(3M)

FY19.1H(6M)

New business value

23.1

17.0

14.8

31.8

New business margin

5.0%

5.4%

3.8％

4.5％

Note: Calculated MCEV as of June 30, 2019 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 40-43 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21

Sony Lifeʼs MCEV as of September 30, 2019 was ¥1,691.9 billion,up ¥40.6 billion from June 30, 2019, due mainly to a change ininterest rates and acquisition of new policies.
New business margin for FY19.2Q (3M) was 3.8%, down 1.6 percentage
points from FY19.1Q (3M), mainly owing to a decline in U.S. dollar interest
rates and changes in the product mix.
New business value for FY19.2Q (3M) was ¥14.8 billion, due to a decline in
new business margin.

Sony Lifeʼs MCEV: Breakdown of MCEV for FY19.1H (6M)

Numerator of core ROEV:+39.4
1,720.2(32.2)+31.8

MCEV
as of Mar. 19(after dividends paid)(35.5)

1,691.9
Assumptionchanges

MCEV
as of Mar. 19

New business
value

Dividend
payments toshareholder(JPY bn)

Expected existing
business contribution

1,688.0+7.5

MCEV
as of Sep. 19

Note: Details on assumption changes : Insurance-related assumption changes:+¥13.9 billion,
economic variances changes (included interest rate fluctuation): (49.5) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

22Sony Lifeʼs MCEV as of September 30, 2019 was ¥1,691.9 billion,
due to a decrease in yen interest rates and dividend payments toshareholders, despite an increased contribution from numerators of
the core ROEV formula: new business value and expected existing
business contribution.
Consolidated adjusted ROE for FY19.1H (6M) was 2.7%.
We currently expect consolidated adjusted ROE for FY19 (12M) to be
below our initial forecast of 6% but above 5%.
The dividend forecast for FY2019 is unchanged at ¥65 per share.
For detail of consolidated adjusted ROE, please refer page 24 and 25
on appendix.
This conclude the explanation.
Thank you.

◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted ROE

FY2018(12M)

FY18.1H(6M)

FY19.1H(6M)

Consolidated Adjusted ROE

6.7%

3.3%

2.7%

(Sony Life) Core ROEV

6.4%

3.1%

2.3%

(Sony Assurance) Adjusted ROE

15.2％

10.5%

10.2%

(Sony Bank) ROE

7.3%

3.6%

4.2%

Copyright © Sony Financial Holdings Inc. All rights reserved.

24

Detail of Consolidated Adjusted Profit and Consolidated Adjusted Capital◆ Adjusted capital (Denominator）◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated） （JPY bn）

FY2018

FY18.1H

FY19.1H

120.4

60.0

48.6

FY2018

FY18.1H

FY19.1H

New business value *

91.3

44.5

31.8

Expected existing business
contribution *

15.0

7.1

7.5

Adjusted profit

106.4

51.7

39.4

Adjusted profit(consolidated)
Sony Life(non-consolidated)（JPY bn）

FY2018

FY18.1H

FY19.1H

Net income

4.9

3.8

4.1

Provision amount forcatastrophe reserve (after tax)

2.6

1.2

1.3

Sony Assurance（JPY bn）

Provision amount for reservefor price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit

7.6

5.1

5.4

FY2018

FY18.1H

FY19.1H

6.3

3.0

3.7

Sony Bank(consolidated)（JPY bn）

Profit attributable to ownersof the parent

Sony Financial Group（consolidated）（JPY bn）

FY2018

FY18.1H

FY19.1H

Adjusted capital(consolidated)

1,801.8

1,797.7

1,833.7

FY2018

FY18.1H

FY19.1H

1,633.1

1,633.1

1,720.2

Sony Life(non-consolidated)（JPY bn）①MCEV as of the beginning of
the fiscal year

26.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,715.2

1,691.9

Adjusted capital（①−②＋③）/２

1,663.5

1,661.0

1,689.9

FY2018②Dividends paid

FY18.1H

FY19.1H

34.7

33.9

36.3

②Catastrophe reserve

17.7

16.3

19.1

③Reserve for price fluctuations

0.1

0.1

0.1

Adjusted capital（The averageamount of ①＋②＋③）

50.5

49.4

54.1

FY18.1H

FY19.1H

87.2

89.6

Sony Assurance①Net assets

Sony Bank(consolidated)（JPY bn）（JPY bn）

Adjusted capital（The averageamount of net assets during
the period）

FY2018
87.6* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY18.1H and FY19.1H.
Copyright © Sony Financial Holdings Inc. All rights reserved.

25

Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision ②
amount for reserve for pricefluctuations during the fiscal
year, in each case after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Update of Major KPIs

Sony Life
Policy Amount in Force *1

48.5

49.5

50.3

（JPY tn）
Sep. 18

Sony Assurance
Direct Premiums Written

53.1

55.9

59.0

Sep. 19

FY17.1H

4.0

4.2

4.3

Mar. 19

Sep. 19（JPY tn）（JPY bn）
Mar. 19

Sony Bank

Retail Balance*2

FY18.1H

FY19.1H

Sep. 18*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, financial products intermediary services, mediated discretionary investment
contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Financial Soundness

Change from
Mar. 19

Sep. 18

Mar. 19

Sep. 192,618.9%

2,590.5%

2,654.9%+64.4pt

Sony Assurance
Solvency margin ratio

821.0%

813.0%

876.2％+63.2pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.43%

9.58％

9.42％

（0.16pt)

Sony Life (non-consolidated)
Solvency margin ratio

Sep. 18
Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）*

0.11%

Mar. 19
0.12%

Sep. 190.12%

Change from
Mar. 19+0.00pt*Non-performing loans (loans based on the Financial Reconstruction Act) / Total loan exposure(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 11% of the amount of new mortgage loans for FY19.1H (6M)
Sony Life accounts for 18% of the balance of mortgage loans as of September 30, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY19.1H (6M)
※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)
FY18.1H（6M）¥37.9 billion

Yen whole
life 3% U.S. dollardenominatedwhole life
14%
Savings type
U.S. dollar-denominatedproducts
single-premium whole30%
life insurance 7%
Protection-type（term-life）
46％

FY18（12M）¥87.9 billion

Yen whole U.S. dollarlife 3%
denominatedwhole life
13%
Savings typeproducts
27%

U.S. dollar-denominatedsingle-premium whole
life insurance 7%

FY19.1H（6M）¥38.6 billion
Yen whole
life 3%

Savings typeproducts
39%

U.S. dollardenominatedwhole life 16%

U.S. dollar-denominatedsingle-premium
whole life insurance
19%
Protection-type（term-life）
23％

Protection-type（term-life）
50％

Note: Savings type products : Endowment, annuities, and educational endowment insurances

Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)
Japanesestocks0.4%

FY18.1H（6M）

FY19.1H（6M）

Foreign bonds
24.0%Japanese
corporate
bonds
17.6%

Japanese stocks
0.2%

JGBs
58.0%

JGBs
30.0%
Japanesestocks0.2%

FY18（12M）

社債
25.9%

Foreign bonds
23.5%

Japanese
corporate
bonds
12.7%

Foreign bonds
56.2%
Japanese corporate
bonds
13.6%

JGBs
63.6%

Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Sep. 19

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

7,918.9

83.3%

Japanese stocks

28.6

0.3%

27.6

0.3%

Foreign bonds

542.1

6.0%

766.8

8.1%

Foreign stocks

22.5

0.2%

19.4

0.2%

Money held in trust

269.3

3.0%

269.8

2.8%

Policy loans

198.3

2.2%

203.6

2.1%

Real estate*

90.8

1.0%

90.1

0.9%

Cash and call loans

61.9

0.7%

93.3

1.0%

Others

120.2

1.3%

114.3

1.2%

Total

9,079.4

100.0%

9,504.1

100.0%（JPY bn）◆ Bond duration
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Sep. 19 : 21.9 years◆ Investment in the money held in trustis mainly into Japanese bonds.
◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 18 : 89.5%
Mar. 19 : 88.3%
Sep. 19 : 86.2%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY18.1H

FY19.1H

Change00+22.2%

Japanese bonds(including JGBs)

64,207

66,031+2.8%

Japanese stocks

295

216

(26.8%)

Foreign securities

8,988

13,279+47.7%

Other securities

293

11

(96.2%)

Loans

3,396

3,500

+3.1%

Real estate

4,347

4,860

+11.8%

269

206(23.4%)

81,798

88,105+7.7%

Cash and deposits

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Capital Gains (Losses)
FY18.1H

FY19.1H

40,355

17,821

Losses on trading securities, net

19

ー

Losses on sale of securities…(3)34ーLosses on valuation of securities…(4)

4,026

2,991

Losses on derivatives, net（JPY mn）
Capital losses（JPY mn）
Capital gains
Income from trading securities, net

19,7044,251

Losses on hedges of variable life
insurance…(1)12,304

3,974

Losses on hedges of available-for-salesecurities…(2)

2,628

242

Losses on U.S. dollar-denominatedinsurance (foreign exchange losses)…(5)

4,461

7

ー

10,552Losses on U.S. dollar-denominatedinsurance…(5)ー

10,859Losses on hedges of variable life
insurance…(1)

ー

(323)

16,57025

16,570ー（JPY mn）

FY18.1H

Foreign exchange losses, net

Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy reserves
for foreign exchange fluctuations)…(5)FY18.1H

FY19.1H

24,715

13,738ー

63

Gains on sale of securities…(3)

3,316

2,317

Foreign exchange gains, net

21,398ー

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains)…(5)Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(5)Net capital gains (losses)

21,280ーー

11,356

ー

11,356(15,639)(4,083)

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

●Capital Gains (Losses) on Main Items, Net Amounts
FY19.1H(1) Gains (Losses）on hedges of variable life insurance(12,304)(2) Gains (losses）on hedges of available-for-sale securities(2,628)(242)(3) Gains (losses) on sale of securities

3,282

2,317

(4) Losses on valuation of securities(4,026)(2,991)249

489(5) Gains (losses) on U.S. dollar-denominated insurance(3,650)

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4

1,674.7
1,485.0

1,115.8

1,114.8

1,435.5

1,555.1

1,214.7

1,219.1

1,317.2（JPY bn）

0.0
FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

19.5
16.1

（JPY bn）

21.1

16.2

18.7

19.2

18.9

21.1
17.5

3.1

2.8

3.3

3.6

3.3

3.9

3.8

4.0

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

3.1

3.1

FY19.1Q

FY19.2Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1

17.0
14.8

12.2

（JPY bn）

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs ESR
 The risk amount based on economic value as of September 30, 2019 was ¥768.8 billion, up ¥10.3 billion from
June 30, 2019, resulting from an increase in interest rate risk, due to an increase in yen interest rates.
 ESR as of September 30, 2019 was 222%, up 2pt from June 30, 2019 due mainly to an increase in MCEV.
（JPY bn）

Insurance risk

547.3

Market-related risk
Of which, interest rate risk
Operational risk
Counter party risk
Variance effect
The risk amount based on
economic value（JPY bn）

MCEV + Frictional costs
ESR

Mar. 19

Jun. 19586.2

Sep. 19588.5

Change from
Mar. 19

Change from
Jun. 19

+41.1

+2.3

332.5

299.9

303.1

(29.3)

+3.2

202.1

159.2

166.7

(35.3)

＋7.4

33.4

35.0

41.4

+8.0

+6.3

3.0

4.1

3.7

+0.6

(0.4)

(174.0)(166.8)(167.9)

+6.1

(1.1)

742.3

758.5

768.8

+26.5

+10.3

Change from
Mar. 19

Change from
Jun. 19

Mar. 19

Jun. 19

Sep. 19

1,743.7

1,672.2

1,709.4(34.3)

+37.1

235%

220%

222%

(13pt)+2pt

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*

Number and Amount of Policies in Force**

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

25.6

525.8

522.7

532.4

93.8

94.5

97.6

Sep. 18

Mar. 19

Sep. 19

25.7

5.5
4.7

14.5
2.9

（JPY bn）（JPY bn）

FY17.1H

FY18.1H

FY19.1H*Amounts for FY17.1H and FY18.1H are individual annuities while amounts for
FY19.1H are total of individual insurance and individual annuities◆Net income (losses) for AEGON Sony Life and SA Reinsurance（JPY bn）

FY18.1H

FY19.1H** Amounts for as of Sep. 2018 are individual annuities while amounts forMar. 2019 and Sep. 2019 are total of individual insurance and individual
annuities

ChangeAEGON Sony Life

(1.7)

(0.7)

+1.0

SA Reinsurance

1.1

1.0

(0.1)

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Trend on JGB Yields (Par rate)
10 years
20 years

0.70%

30 years
40 years

0.50%

0.30%

0.10%

(0.10%)(0.30%)
Mar. 19
Mar. 19

Apr. 19
Apr. 19

May. 19

Jun. 19

Jul. 19

Aug. 19

May 19Jun. 19

Jul. 19

Aug. 19

Sep. 19
Sep. 19

10 years(0.08%)(0.05%)(0.09%)(0.16%)（0.16%)(0.28%)

20 years

0.34%

0.37%

0.30%

0.23%

0.20%

0.05%

(0.21%)
0.20%

30 years

0.51%

0.56%

0.46%

0.36%

0.35%

0.15%

0.36%

40 years

0.58%

0.63%

0.50%

0.41%

0.40%

0.17%

0.43%

Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Trend on Risk-free Rate (Japanese yen/Par rate)
1.60%
1.40%
1.20%

Convergence
period: 20 year

Mar. 19
Jun. 19
Sep. 19

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
(0.20%)(0.40%)

Last liquid point:
40 year(0.60%)
1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
3.00%

20 years
30 years

2.60%

2.20%

1.80%

1.40%
Mar. 19

Apr. 19
Mar. 19

May. 19
Apr. 19

Jun. 19

May 19Jul. 19

Jun. 19

Jul. 19

Aug. 19
Aug. 19

Sep. 19
Sep. 19

10 years

2.41%

2.50%

2.13%

2.01%

2.02%

1.50%

20 years

2.63%

2.74%

2.38%

2.31%

2.30%

1.77%

1.92%

30 years

2.82%

2.93%

2.57%

2.53%

2.53%

1.96%

2.11%

1.67%

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.10%

Convergence
period: 30 year

Mar. 19

2.90%

Jun. 19
Sep. 19

2.70%
2.50%
2.30%
2.10%
1.90%
1.70%
1.50%

Last liquid point:
30 year1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Consolidated︓Summary Financial Statements（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Consolidated

FY18.1H

FY19.1H

Change

779.3

806.9

+27.5

+3.5%

Ordinary profit

37.4

48.7

＋11.3

+30.3%

Ordinary revenues

57.7

60.6

+2.9

+5.0%

5.4

5.7

+0.3

+5.9%

Ordinary revenues

Ordinary profit

22.0

24.5

+2.5

+11.5%

Ordinary profit

4.6

5.6

+0.9

+20.5%

Ordinary revenues

1.7

2.2

+0.5

+33.2%

Ordinary revenues

Ordinary profit

(0.3)

(0.4)

(0.1)

ー

Ordinary revenues

860.8

894.4

+33.6

+3.9%

Ordinary profit

47.2

59.6

+12.4

+26.4%

Profit attributableto owners of theparent

31.7

40.4

+8.6

+27.3％*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. is included in the scope of consolidation from FY18.2Q, SFV・GB L.P. is included in
the scope of consolidation from the FY18.4Q and SmartLink Network Europe B.V. is included in the scope of
consolidation from FY19.2Q, respectively.
(Note) Comprehensive income : FY18.1H: ¥19.2 billion, FY19.1H: ¥51.8 billion（JPY bn）
Consolidated

Net assets
Total assets

Mar. 19

Sep. 19

Change from Mar. 19

656.8

681.6

+24.7

+3.8%

13,468.2

14,143.3+675.1+5.0%

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）
Ordinary revenues

FY18.1H
779.2

FY19.1H
806.8

Mar. 19

Sep. 19＋3.5%

Securities

9,523.8

10,039.4＋515.5＋5.4%

Policy reserves

9,268.4

9,681.7＋413.2

+4.5%

513.9

525.2

+11.3

+2.2%

122.7

133.4

+10.7

+8.7%

10,380.1

10,897.4+517.2+5.0%

1,300.7

1,393.2

+92.5

+7.1%

FY18.1H

FY19.1H

82.1

70.7

（JPY bn）

Change＋27.5

Income from insurance
premiums

542.0

665.4

＋123.4+22.8%

Investment income

231.4

134.1

(97.2)(42.0%)

Interest income
and dividends

81.7

88.1

+6.3

＋7.7%

Gains on sale ofsecurities

3.3

2.3

(0.9)

(30.1%)

Foreign exchange
gains, net

21.3

−

(21.3)(100.0%)Gains on separate
accounts, net

122.6

41.3

(81.2)(66.3%)

741.5

758.2

+16.6

+2.2%

Insurance claims andother payments

200.4

222.6

+22.1

+11.0%

Provision for policy
reserves and others

426.8

415.1

(11.7)(2.8%)

26.6

22.0

(4.6)

(17.3%)(78.4%)

Ordinary expenses

Investment
expensesLosses onderivatives, net

19.7

4.2

(15.4)

Foreign exchange
losses, net

ー

10.5

＋10.5

ー

Operating expenses

71.4

78.5

＋7.0

＋9.9%

Ordinary profit

37.7

48.6

＋10.9

＋29.0%Net income

25.4

32.7

＋7.3

＋28.9%Net assets
Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

Change from Mar. 19

Change(11.3)(13.8%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)
Direct Premiums Written *Medical insurance is included in personal accident.
（JPY bn）

FY18.1H

FY19.1H

Ordinary revenues

57.7

60.6

+2.9

+5.0%

Underwriting
income

56.5

59.3

+2.7

+4.9%

Investment
income

1.1

1.3

+0.1

+11.1%

Ordinary expenses

52.3

54.9

+2.5

+4.9%

Underwriting
expenses

38.9

40.5

＋1.5

＋4.0%

Operating,general andadministrative
expenses
Ordinary profit
Underwriting
incomeNet income

Change（JPY mn）

13.3

14.3

＋1.0

+7.7%

5.4

5.7

＋0.3

+5.9%

4.2

4.4

＋0.2

+5.0%

3.8

4.1

＋0.2

+5.6%

Fire

Change from
Mar. 19

FY19.1H

110

819

Change+645.0%−−ー

Personal accident

4,361

4,637

+6.3%

Voluntary automobile

51,47853,638

+4.2%

−

−

ー

55,95059,096+5.6%

FY18.1H

FY19.1H

ChangeMarineCompulsory automobile liability
Total

Net Premiums Written（JPY mn）
Fire

8

449

ー

Marine

−

0

ー
+1.4%

Personal accident

4,441

4,502

Voluntary automobile

51,33653,491

+4.2%

733

863

+17.7%

56,52059,307+4.9%

FY18.1H

FY19.1H

3

9

Compulsory automobile liability
Total

Net losses paid
（JPY mn）
Fire

Mar. 19

Sep. 19

Underwriting
reserves

127.8

133.9

＋6.1

＋4.8%

Net assets

34.7

36.3

+1.5

＋4.4%

Compulsory automobile liability

Total assets

219.6

225.2

＋5.6

＋2.6%

Total

（JPY bn）

FY18.1H

Change+131.2%2(3)

ーPersonal accident

1,402

1,559

+11.2%

Voluntary automobile

24,74926,595

+7.5%

671

660

(1.6%)

26,83028,821+7.4%

MarineCopyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY18.1H

FY19.1H

ChangeOrdinary revenues

22.0

24.5

+2.5

+11.5%

Ordinary profit

4.6

5.6

＋0.9

＋20.6%

Profit attributable toowners of the parent

3.0

3.7

+0.6

+20.7%◆ Non-consolidated（JPY bn）

FY18.1H

FY19.1H

ChangeOrdinary revenues

19.9

22.2

＋2.3

+11.6%

Gross operating profit

11.8

13.2

＋1.4

＋11.9%

11.4

12.0

+0.6

+5.9%

Net interest income
Net fees andCommissions

(1.6)

(0.7)

+0.8

−

Net other operating
income

2.0

1.8

(0.1)

(7.1%)

General andadministrative expenses

7.6

8.1

+0.5

+7.0%

Net operating profit

4.1

5.0

+0.9

＋22.4%

Ordinary profit

4.2

5.0

+0.8

+19.8%Net income

2.9

3.5

＋0.5

＋19.8%（JPY bn）
Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets

Mar. 19

Sep. 19◆ Balance of Securities by Credit Rating（Non-consolidated）
Change from
Mar. 19

Mar. 19

Sep. 19

AAA

296.6

327.8

+31.1

+10.5%

AA

77.3

63.3

(13.9)(18.1%)

A

288.0

307.5

+19.4

+6.8％

BBB

24.4

29.6

＋5.2

＋21.4％（JPY bn）

Others

10.0

8.7

(1.2)

(12.4%)

Total

696.4

737.1

+40.6

+5.8%

Change from
Mar. 19

87.2

87.9

+0.6

+0.8%

3.9

4.2

+0.2

+6.1%

2,860.9

3,003.9＋143.0+5.0%

Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and on loans in line witha growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions（JPY bn）
Gross operating profit＜Reference＞

FY18.1H

FY19.1H

Change

11.8

13.2

＋1.4

+11.9%Net interest income

①

12.5

13.0

+0.5

＋4.0%

Net fees andcommissions*2

②

*1

(1.3)

(0.5)

+0.8

−

Net other operating
income*3

0.6

0.6

＋0.0

＋9.2%

Gross operating profit(core profit)(A) ＝①＋②

11.2

12.5

＋1.3

＋12.1%

Operating expenses andother Expenses ③

7.7

8.2

＋0.4

＋6.3%

Net operating profit(core profit) ＝(A)−③

3.4

4.3

＋0.8

＋24.9%

Yield on investment■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on financing

0.93

0.25

Interest spread

1.19

1.17

■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.

Interest Spread(Managerial Accounting Basis）(0.04pt)

0.89

0.30

（%）

FY18.1H

FY19.1H

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500