August 13, 2012
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Three Months Ended June 30, 2012
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount

P.2(2) Annualized Premiums

P.2

2. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets

P.3(2) Fair Value Information on Securities

P.4(3) Fair Value Information on Monetary Trusts

P.6

3. Non-consolidated Balance Sheets

P.7

4. Non-consolidated Statements of Income

P.8

5. Reconciliation to Core Profit and Non-consolidated Ordinary Profit

P.9

6. Solvency Margin Ratio

P.10

7. Status of Separate Account Assets(1) Balance of Separate Account Assets

P.11(2) Policy Amount in Force (Separate Account)

P.11

8. Consolidated Summary(1) Key Performance Indicators

P.12(2) Scope of Consolidation and Companies Accounted for under Equity Method

P.12(3) Consolidated Balance Sheets(4) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income

P.13(5) Consolidated Solvency Margin Ratio(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments

1

P.14
P.16
P.17

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of June 30, 2011

As of March 31, 2012

As of June 30, 2012

Category
NumberIndividual life
insurance

Amount5,364

Number

347,398

5,602

% YoY
changeNumberAmount357,073

5,687% change fromMarch 31, 2012

106.0

101.5

% YoY
changeAmount360,551% change fromMarch 31, 2012

103.8

101.0

Individual annuities

61

3,335

71

3,697

73

118.2

102.4

3,769

113.0

101.9

Subtotal

5,426

350,734

5,673

360,770

5,760

106.1

101.5

364,320

103.9

101.0

Group life insurance-

12,177-

12,687---

12,911

106.0

101.8

Group annuities

-

583

-

578

-

-

-

573

98.3

99.2

Notes:

1. 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 have commenced.
2. Policy amount in force for group annuities is equal to the amount of outstanding policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the three months ended June 30, 2011

For the three months ended June 30, 2012

Category
NumberIndividual life
insurance
Individual annuities

Amount148

10,450

NumberIncrease fromconversion

New policies

10,450-

Amount% YoYchange

149

101.0

% YoY
changeNew policies

10,555101.0

Increase fromconversion

10,555

-

2

93

93

-

2

122.9

109

116.9

109

-

Subtotal

150

10,544

10,544

-

152

101.3

10,665101.1

10,665-

Group life insurance

-

10

10

-

-

4

37.8

4

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
Policy amount in force
Category
Individual life insurance(Millions of yen, %)As of June 30, 2011

As ofJune 30, 2012

As of March 31, 2012

599,005

621,647% YoY change% change fromMarch 31, 2012

629,041

105.0

101.2

Individual annuities

12,54013,75314,011

111.7

101.9

Total

611,546

635,401

643,053

105.2

101.2

143,162

148,954

151,558

105.9

101.7

Of which, medical protection,living benefit protection, etc.

New policies(Millions of yen, %)Category

Individual life insurance

For the three months ended
June 30, 201116,836

For the three months
ended June 30, 2012

17,031% YoY change

101.2

Individual annuities

355

438

123.4

Total

17,192

17,470

101.6

4,269

4,460

104.5

Of which, medical protection,living benefit protection, etc.

Notes:

1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection, etc” 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

2. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(Millions of yen, %)Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

As of March 31, 2012
Amount%64,869288,297
4,114,529
3,975,755
45,052
90,162
59,63230,5293,558
138,90972,96026,986
72,219(214)
4,778,556
42,996

Note: Real estate is the total of land, buildings and construction in progress.

3

1.4
6.0
86.1
83.2
0.9
1.9
1.2
0.6
0.1
2.9
1.5
0.6
1.5
(0.0)
100.0
0.9

As of June 30, 2012
Amount%46,337
292,531
4,245,629
4,113,804
37,61990,63360,49530,137
3,571
138,944
72,443
23,57084,024(214)
4,903,266
43,212

0.9
6.0
86.6
83.9
0.8
1.8
1.2
0.6
0.1
2.8
1.5
0.5
1.7
(0.0)
100.0
0.9

(2) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)
Category
Held-to-maturity securities
Policy reserve matching bonds
Stocks of subsidiaries andaffiliated companies
Available-for-sale securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Monetary claims purchased
Certificates of deposit
Others
Total
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc
Other securities
Monetary claims purchased
Certificates of deposit
Others

As of March 31, 2012
Net unrealized gains (losses)
Carrying
Unrealized Unrealized
Fair value
amountgains
losses3,404,821 3,560,687
155,865
160,1724,307-(Millions of yen)
As of June 30, 2012
Net unrealized gains (losses)
Carrying
Unrealized Unrealized
Fair value
amountgains
losses3,533,084 3,709,297
176,212
181,973
5,761
-

-

-

-

-

-

-

-

-

-

-

895,142
849,186
29,106
15,373
15,373
1,476
4,299,963
4,211,145
29,10658,23558,235
1,476-

956,125
902,676
34,97016,77016,7701,708
4,516,813
4,417,819
34,97062,31462,314
1,708-

60,98353,490
5,863
1,397
1,397
232
216,849
206,674
5,863
4,078
4,078
232
-

61,34553,490
6,225
1,397
1,397
232
221,518
210,981
6,225
4,078
4,078
232
-

361
361
4,668
4,307
361
-

891,504
849,099
24,705
16,223
16,223
1,476
4,424,588
4,339,202
24,70559,20559,205
1,476-

964,490917,770
27,537
17,513
17,513
1,669
4,673,787
4,584,552
27,53760,02860,028
1,669-

72,986
68,670
2,832
1,290
1,290
193
249,198
245,350
2,832
822
822
193
-

73,83568,670
3,681
1,290
1,290
193
255,809250,605
3,681
1,328
1,328
193
-

849
-849
---6,610
5,255
849
505
505
---

Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥268,539 million and ¥25,529 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

b. Carrying amount of securities without market value
Category(Millions of yen)

As of March 31, 2012

As of June 30, 2012

Held to maturity securities
Held-to-maturity--

Unlisted foreign bonds

-

-

-

-

-

-

Stocks of subsidiaries and affiliated companies

15,625

15,625

Available-for-sale securities

27,09026,778

4

4

1,084

1,111

-

-

26,001

25,662

42,71542,404

Others
Policy reserve matching bonds

Unlisted domestic stocks (except OTC stocks)
Unlisted foreign stocks (except OTC stocks)
Unlisted foreign bonds
OthersTotal

4

c. Fair Value Information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b
As of March 31, 2012
Category

Held-to-maturity securities

Carrying
amountNet unrealized gains (losses)
Unrealized Unrealized
gains
lossesFair value

3,404,821 3,560,687

Policy reserve matching bonds-

155,865-

160,172

4,307

-

-

-

-

-

-

Stocks of subsidiaries and affiliated companies

15,625

15,625

Available-for-sale securities

922,232

982,962

60,72964,330JGBs, other bonds

849,186

902,676

53,49053,490Japanese stocks

29,111

34,974

5,863

6,225

Foreign securities(Millions of yen)

As of June 30, 2012

3,601
361

Carrying
amountFair value

3,533,084

3,709,297-

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses176,212-

181,973

5,761

-

-

-

-

-

-

15,625

15,625918,282

990,987

72,70476,883

849,099

917,770

68,67068,67024,70927,542

2,832

3,681

4,178
849

16,45718,024

1,567

1,567

-

17,335

18,794

1,459

1,459

-

Bonds

15,373

16,770

1,397

1,397

-

16,223

17,513

1,290

1,290

-

Stocks, etc.

1,084

1,254

169

169

-

1,111

1,280

168

168

-

Other securities

27,47827,286

(191)

3,047

3,239

27,13826,880

(257)

3,071

3,329

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

Total
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds

216,594

224,503

7,908

4,466,993

4,715,909

248,916

258,856

9,940

4,211,145 4,417,819

206,674

210,9814,307

4,339,202

4,584,552

245,350

250,605

5,255

45,052

5,863

6,225

361

34,786

37,619

2,832

3,681

849

64,867

69,116

4,248

4,248

-

65,864

66,856

991

1,497

505

58,23562,314

4,078

4,078

-

59,20560,028

822

1,328

505

39,188Stocks, etc

6,632

6,801

169

169

Other securities

27,47827,286

(191)

3,047

Monetary claims purchased-

4,342,679 4,559,274

-

-

-

3,239
-

-

6,659

6,828

168

168

27,13826,880

(257)

3,071

-

-

-

3,329
-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

5

(3) Fair Value Information on Monetary Trusts(Millions of yen)
As of March 31, 2012

Category

Monetary trusts

Balance sheet
Fair value
amount288,297288,297

As of June 30, 2012

Net unrealized gains (losses)

Balance sheet
Fair value
Unrealized Unrealized
amountgains
losses---292,531

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses292,531---

Note: The table above includes ¥50 million of jointly invested monetary trusts.

Monetary Trusts for Investment(Millions of yen)
As of March 31, 2012

Category

As of June 30, 2012

Net valuation gains (losses)
recorded in income

Balance sheet amount-

Monetary Trusts for Investment

Net valuation gains (losses)
recorded in income

Balance sheet amount

-

-

-

Note: Monetary trusts includes cash and call loans, etc. held in monetary trusts.

Monetary Trusts for Held-to-maturity, Policy Reserve Matching and Other Monetary Trusts(Millions of yen)

As of March 31, 2012
Category

As of June 30, 2012

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

-

-

-

-

-

-

-

-

-

-

Monetary trusts for policy reserve matching

-

-

-

-

-

-

-

-

-

-

267,887

288,247

20,35920,359-Other monetary trusts

Note: Monetary trusts includes cash and call loans, etc. held in monetary trusts.

6

266,951

292,480

25,52925,529-

3. Non-consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of June 30, 2012

AmountAmountAssets:Cash and deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Intangible fixed assets
Due from agencies
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

19,80856,300288,297
4,545,019
4,071,699
10,48544,035
69,149230,172
138,909
138,782
127
73,67824,257

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due
ue to reinsurers
e su e s
Other liabilities
Accrued income tax
Lease obligations
Asset retirement obligations
OthersReserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings for the period
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

7

25,93135,200292,5314,657,198

65
49,73626,986(214)
5,222,846

4,212,997
10,47643,426
60,613220,975
138,944
138,827
117
73,138
24,1040
66
60,30823,570(214)
5,330,778

4,871,182
24,0394,843,020
4,122
1,664
581

4,977,369
23,093
4,950,278
3,997
1,333
429

38,193
10,255263
642
27,031
20,310168
25,31925,319589

30,876
4,334
258
646
25,637
20,900153
26,907
26,907589

4,958,009

5,058,560

70,0005,865
5,865
156,335
13,238143,096
143,096
232,200
34,032(1,395)32,636
264,836
5,222,846

70,0005,865
5,865
155,448
15,058140,390
140,390
231,31342,300(1,395)40,905272,218
5,330,778

4. Non-consolidated Statements of Income(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

AmountOrdinary Revenues
Income from insurance premiums

Amount229,303
194,652
194,541
29,00723,225
1,322
510
3,949
5,644
211,399
71,38620,093
1,911
8,271
40,041
617
108,161
108,157
4
3,095
18
435
213

(Insurance premiums)
Investment income(Interest income and dividends)(Income from monetary trusts, net)
(Gains on sale of securities)(Gains on separate accounts, net)
Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Refund to policyholders)
Provision for policy reserves and others
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

247,632
217,979
217,880
27,83925,735
1,312
778-

25,1183,636
17,904
1,870
6

1,813
233,459
69,92017,283
2,226
8,669
40,667651
107,260
107,257
3
26,16312
98
107
23,643
26,195
3,918
14,173
1,669
5

0
1,863
1,863
6
16,041
4,387
1,463
5,851
10,189

76
1,587
1,587
6
12,509
4,706
(410)
4,295
8,213

-

L
di
l off tangible
ibl fi
Losseson disposal
fixedd assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Reversal of reserve for policyholders' dividends
Income Before Income Taxes
Income Taxes -current
Income Taxes -deferred
Total Income Taxes
Net Income

85. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the three months ended
June 30, 2011
Core profit(A)

Capital gains
Income from monetary trusts, net
Income from trading securities, net

For the three months ended
June 30, 2012

19,204

14,782

510

778

-

-

-

-

Gains on sale of securities

510

778

Gains on derivatives, net--

Foreign exchange gains, net--

Other capital gains

-

-

885

350

-

-

Capital losses
Losses on monetary trusts, net
Losses on trading securities, net--

Losses on sale of securities

435

98

Devaluation losses on securities

213

107

Losses on derivatives, net

0-

Foreign exchange losses, net

236

145

Other capital losses-

Net capital gains (losses)

-

(B)

(375)

428

(A)+(B)

18,82915,2110-

Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loan losses

0-Core profit plus net capital gains (losses)
Other one-time gains

OthersOther one-time losses

-

-

924

1,038

Losses from reinsurance

-

-

846

995

Provision for specific reserve for possible loan losses-

0

Provision for reserve for loan losses from borrowers in specific foreigncountries-

Provision for contingency reserve

Write-off of loans-

OthersNet other one-time gains (losses)
Ordinary profit

-

78

42

(C)

(924)

(1,038)(A)+(B)+(C)17,904

14,173

Notes: 1.Core profit for the three months ended June 30, 2011 (A) includes income gains of ¥1,322 million in income from monetary trusts; "Others" of other one-time losses
includes provision of additional policy reserve of ¥78 million.
2. Core profit for the three months ended June 30, 2012 (A) includes income gains of ¥1,312 million in income from monetary trusts; "Others" of other one-time losses
includes provision of additional policy reserve of ¥42 million.

96. Solvency Margin Ratio(Millions of yen)
Category
Total solvency margin

As of March 31, 2012

(A)

As of June 30, 2012

722,175

758,136

Common stock, etc.

223,100

231,313

Reserve for price fluctuations

25,31926,907

Contingency reserve

55,33856,3330

0

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

54,65665,433Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

(173)

(156)

Unallocated portion of reserve for policyholders' dividends

700

661

-

-

Deferred tax assets

58,77462,427

Excess amount of policy reserves based on Zillmer method

350,404

355,773--(45,945)(40,557)--

72,93072,832

General reserve for possible loan losses

Amount excluded from deferred tax assets

Subordinated debt
The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin
Deductible items
Total risk

(R1  R8 )  (R2  R3  R7 )  R4
2

2

(Ｂ)

Insurance risk

R1

20,85021,088

Third-sector insurance risk

R8

7,509

7,593

Assumed interest rate risk

R2

28,50928,658Minimum guarantee risk

R7

9,904

9,767

Asset management risk

R326,741

26,479Business guarantee risk

R4

1,870

1,871

1,980.4%

2,081.8%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Ordinace for Enforcement of the Insurance Business Act ofJapan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

10

7. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)
Category

As of March 31, 2012

As of June 30, 2012

444,289

Individual variable life insurance and individual variable annuities

427,512-Group annuities-

444,289

Total separate account427,512

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

(2) Policy Amount in Force (Separate Account)(Number: Thousand, Amount: Millions of yen)

Individual variable life insurance
As of March 31, 2012

Category

NumberAs of June 30, 2012

AmountNumberAmountVariable life insurance (whole life type)552

6,955,907

557

6,975,820

Variable life insurance (limited term type)42

142,82842

142,672

Variable life insurance (term type)1

48,924

1

47,896596

7,147,660

601

7,166,388

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

Individual variable annuities(Number: Thousand, Amount: Millions of yen)
As of March 31, 2012

Category

NumberIndividual variable annuities

As of June 30, 2012

Amount28

149,528

NumberAmount27

148,235

Note: The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies for which annuity
payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

11

8. Consolidated Summary(1) Key Performance Indicators(Millions of yen)
Category

For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

Ordinary revenues

229,356

247,670

Ordinary profit

17,636

13,769Net income

9,925

7,820

Comprehensive income

21,87816,298Category

As of March 31, 2012

As of June 30, 2012

Total assets

5,219,990

5,327,775

Solvency margin ratio

2,051.5%

2,157.3%(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method212(3) Consolidated Balance Sheets(Millions of yen)
As of June 30, 2012
AmountAs of March 31, 2012
AmountAssets:Cash and deposits

20,593

26,962

Call loans

56,30035,200

Monetary trusts

288,297

292,531

Securities

4,541,228

4,653,017

Loans

138,931

138,968

Tangible fixed assets

73,69073,151Intangible fixed assets

24,257

24,106Due from agencies-0

Due from reinsurers

65

66

Other assets

49,79960,350

Deferred tax assets

27,039(214)

23,634(214)

5,219,990

5,327,775

4,871,461

4,977,684

24,041

23,096

4,843,297

4,950,591

Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

4,122

3,997

Due to agencies

1,664

1,333

Due to reinsurers

582

430

Other liabilities

38,25130,933

Reserve for employees' retirement benefits

20,31520,907

Reserve for directors' retirement benefits

168

153

25,31926,90725,31926,907

Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities on land revaluation

589

589

4,958,352

5,058,939

Common stock

70,00070,000Capital surplus

5,865

5,865

Retained earnings

153,479

152,199

Total shareholder's equity

229,344

228,065

Net unrealized gains on other securities, net of taxes

34,142(1,395)42,430(1,395)

(453)

(264)

Total accumulated other comprehensive income

32,293

40,770Total Net Assets

261,637

268,835

5,219,990

5,327,775

Total Liabilities
Net Assets:

Land revaluation, net of taxes
Foreign currency translation adjustments

Total Liabilities and Net Assets

13(4) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

AmountAmountOrdinary Revenues

229,356

247,670

Income from insurance premiums

194,671

218,004

Investment income(Interest income and dividends)

29,03623,25327,87825,759(Income from monetary trusts, net)

1,322

1,312

511

792

(Gains on sale of securities)(Gains on seprate accounts, net)

3,949

Other ordinary income

-

5,648

1,788

Ordinary Expenses

211,720

233,900

Insurance claims and other payments

71,39969,92320,098
1,911

17,2842,226(Insurance claims)(Annuity payments)(Insurance benefits)

8,271

8,669

(Surrender payments)

40,04840,668Provision for policy reserves and others

108,166

107,273

Provision for policy reserves

108,161

107,270

Interest on policyholders' dividend reserve

4

3

3,111

26,198(Losses on sale of securities)

18
435

12
98

(Devaluation losses on securities)

213

Investment expenses(Interest expenses)(Losses on separate accounts, net)

107-

Operating expenses

25,157

23,643
26,237

Other ordinary expenses

3,886

4,267

Ordinary Profit

17,636Extraordinary Losses

1,870

13,7691,669

Losses on disposal of tangible fixed assets

65

Impairment losses

0

76

1,863

1,587

1,863
6

1,587
6

Income Before Income Taxes

15,773

12,105

Income Taxes -current

4,387

4,706

Income Taxes -deferred
Total Income Taxes

1,459
5,847

4,285

Income Before Minority Interest

9,925

7,820

Net Income

9,925

7,820

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Reversal of reserve for policyholders' dividends

14

(421)

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

AmountAmountIncome Before Minority Interest

9,925

7,820

Other Comprehensive Income

11,953
11,887

8,477
8,287

Foreign currency translation adjustments

66

189

Share of other comprehensive income of affiliates
accounted for using equity method(0)0

Net unrealized gains on other securities, net of taxes

Comprehensive Income
Comprehensive income attributable to parent company
Comprehensive income attributable to minority interest

21,87816,29821,87816,298-15-

(5) Consolidated Solvency Margin Ratio(Millions of yen)
Category
Total solvency margin

As of March 31, 2012

(A)

As of June 30, 2012

706,777

742,349

Common stock, etc.

220,244

228,065

Reserve for price fluctuations

25,31926,907

Contingency reserve

55,33856,333

Catastrophe reserve--

General reserve for possible loan losses

00

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

54,76465,559Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

(173)

(156)

Unallocated portion of reserve for policyholders' dividends

700

661

-

-

Deferred tax assets

58,77462,427

Excess amount of policy reserves based on Zillmer method

350,404

355,773--

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(48,801)(43,805)

Deductible items(9,793)(9,415)68,90068,820

Amount excluded from deferred tax assets

Subordinated debt

Total risk

(Ｂ)

Insurance risk

R1

20,85221,090Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

Third sector insurance risk
Third-sector

R8

7 510
7,510

7 594
7,594

-

-

Insurance risk of small-amount short-term insurance providers

R9

Assumed interest rate risk

R2

28,50928,658Minimum guarantee risk

R7

9,904

9,767

Asset management risk

R322,41522,160Business management risk

R4

1,783

1,785

2,051.5%

2,157.3%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Ordinace for Enforcement of the Insurance Business Act ofJapan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

16

(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of June 30, 2012, are as follows. Sony
Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Othersfacilitated by Sony Life(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOthersSeniorMezzanine
Equity(100 millions of yen)
Unrealized
Realized gains
gains (losses)(losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

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

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Others17

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Realized gains(losses)
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2012

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

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Realized gains(losses)
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Realized gains(losses)
－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2012

Leveraged financeTelecommunications
Electronics
Entertainment
Services
Others

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life held principal protected 30-year notes with Nikkei 225 index-linked coupons (fair market value of ¥42.5 billion andunrealized losses of ¥0.4 billion as of June 30, 2012). These amounts are included in “Net unrealized gains (losses)” of Sony Life’s“Fair Value Information on Securities” as of June 30, 2012.

18