November 12, 2019Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2019
<Contents>
1. Key Operating Performance

P. 2

2. Status of Investment Assets (General Account)

P. 3

3. Non-consolidated Balance Sheets

P. 9

4. Non-consolidated Statements of Income

P. 10

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

P. 11

6. Loans by Borrower Category

P. 12

7. Risk-monitored Loans

P. 12

8. Solvency Margin Ratio

P. 13

9. Status of Separate Account Assets

P. 15

10. Consolidated Summary

P. 15

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 Operating Performance(1) Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of September 30, 2018

As of March 31, 2019

As of September 30, 2019

Category
NumberAmount7,408

469,0497,513

476,762

7,618

102.8

101.4

481,168

102.6

100.9

289

16,017334

18,946

382

132.3

114.5

22,139

138.2

116.8

Individual life insurance
Individual annuities

NumberAmountNumberComparison to Comparison to
Sep. 30, 2018 Mar. 31, 2019

AmountComparison to Comparison to
Sep. 30, 2018 Mar. 31, 2019

7,697

485,066

7,847

495,708

8,000

103.9

101.9

503,307

103.8

101.5

Group life insurance－

19,434－

19,033－－－18,603

95.7

97.7

Group annuities

－

93

－

86

－

－

－

80

86.1

92.7

Subtotal

Notes: 1. The policy amount in force for individual 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.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the six months ended September 30, 2018

For the six months ended September 30, 2019

Category
NumberAmountIndividual life insurance

253

Individual annuities
Subtotal

NumberAmountComparison to
FY18.2Q

Comparison to
New policies
FY18.2Q

New policies

Increase fromconversion

Increase fromconversion

28,99928,999

－

260

102.8

21,88975.5

21,889

－

39

2,597

2,597

－

52

132.2

3,475

133.8

3,475

－

293

31,59731,597

－

313

106.8

25,36480.3

25,364－

Group life insurance

－

117

117

－

－

107

91.4

107

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 payments.

(2) Annualized Premiums
Policy amount in force
Category(Millions of yen, %)As of
September 30, 2018

As ofMarch 31, 2019

As of
September 30, 2019

Comparison to
Sep. 30, 2018

Comparison to
Mar. 31, 2019

Individual life insurance

817,912836,267

843,286

103.1

100.8

Individual annuities

46,75653,07959,953

128.2

112.9

Total

864,668

889,347

903,239

104.5

101.6

194,918

197,520

199,464

102.3

101.0

Medical protection, living benefit protection andother products

New policies(Millions of yen, %)Category

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019

Comparison to
FY18.2Q

Individual life insurance

31,97330,95296.8

Individual annuities

6,015

7,722

128.4

Total

37,98938,674

101.8

7,311

6,246

85.4

Medical protection, living benefit protection andother products

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 single premium policies, premiums are divided by the number of coverage years.)
2. Annualized premiums for “medical protection, living benefit protection and other products” include those for medical protection benefits (hospitalization benefits, surgical procedure
benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.).

2

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

Investment Environment
During the six months ended September 30, 2019, the Japanese economy grew moderately. While capitalspending by Japanese companies to address the worker shortage and to improve productivity was strong, exports
slowed against the backdrop of the U.S.-China trade friction. Overall, however, the Japanese economy remainedon the growth course. The September core CPI rose 0.3% year on year. Real GDP 1 in the April-June quarter grew
0.3% quarter on quarter (annualized growth rate of 1.3%). Looking at respective components, the sustained
economic growth was confirmed with private consumption growing 0.6% and private-sector capital expenditure
increasing 0.2%, both from the previous quarter.

The bond market saw the declining yields on Japanese government bonds (JGBs). As concerns over the global
economic recession grew due to the U.S.-China trade friction, Japanese and overseas investors anticipated interest
rate cuts by central banks in the U.S. and Europe, which led to the declining yields on government bonds of the
U.S. and European countries. Against this background, yields on the 10-year JGBs stayed on a downward trend
from May to August 2019, before moving upward in response to the Bank of Japan Governor Haruhiko Kuroda’s
warning against drops in the yields of ultralong-term JGBs. The long-term interest rate as of September 30, 2019was negative 0.206%, down 0.124 percentage point compared to March 31, 2019.

The stock market moved upward. In April 2019, the market advanced on the growing expectation of the global
economic recovery backed by the improved overseas economic indexes. As the trade friction between the U.S.
versus Mexico and China intensified, however, the markets turned downward, with the Nikkei Stock Average
falling temporarily below ¥20,500. Subsequently, the stock market hiked in September 2019 as concerns over the
trade frictions receded. The Nikkei Stock Average as of September 30, 2019 was ¥21,755.84, up ¥550.03 comparedto March 31, 2019.

The foreign exchange market was unstable and trended toward a stronger yen against the U.S. dollar. The
Japanese yen appreciated on the back of the growing concerns over the global economic recession and thediminishing interest rate gap between the U.S. and Japan, temporarily strengthening to ¥105 to the U.S. dollar.
The subsequent progress in the U.S.-China trade negotiations and preventative rate cuts in the U.S. restored asense of security in the market, resulting in a slightly weaker yen. As of September 30, 2019, the exchange rate
was ¥107.92 to the U.S. dollar, with the yen strengthening from its March 31, 2019 level of ¥110.99 to the U.S.
dollar.

1

Second preliminary figures.

3

(ii)

Investment Policy
Sony Life’s investment policy is to understand the characteristics of insurance liabilities, and prioritize

investment in the assets that meet such characteristics based on ALM (asset liability management, thecomprehensive management of assets and liabilities). Specifically, Sony Life is investing primarily in ultralongterm Japanese bonds with longer remaining maturity, to meet the long-term liabilities of life insurance policies, inan effort to maintain adequate control over the risks associated with interest rate fluctuations involved in suchinsurance liabilities. Meanwhile, it is Sony Life’s policy to limit its investment in risky assets including stocks.

(iii)

Results of Investment

As of September 30, 2019, general account assets totaled ¥9,504.1 billion, up 4.7%, or ¥424.6 billion, fromprevious fiscal year ended March 31, 2019. Within general account assets, Japanese bonds totaled ¥7,918.9
billion (accounting for 83.3% of total general account assets), foreign bonds ¥766.8 billion (8.1%), Japanesestocks ¥27.6 billion (0.3%), money held in trust ¥269.8 billion (2.8%), policy loans ¥203.6 billion (2.1%), cash
and deposits and call loans ¥93.3billion (1.0%), and real estate ¥90.1 billion (0.9%).

4

(2) 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
Money held in trust
Securities
Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

As of March 31, 2019
Amount61,997－－－－269,387
8,339,691
7,745,342
28,611
564,666
542,126
22,5391,071
198,41090,804
14,248105,530(623)
9,079,446
562,095

As of September 30, 2019

%
0.7
－
－
－
－
3.0
91.9
85.3
0.3
6.2
6.0
0.2
0.0
2.2
1.0
0.2
1.2
(0.0)
100.0
6.2

Amount
93,343－－－－269,852
8,733,797
7,918,926
27,619786,254766,815
19,438996
203,708
90,12014,21999,728(649)
9,504,119
791,033

%
1.0
－
－
－
－
2.8
91.9
83.3
0.3
8.3
8.1
0.2
0.0
2.1
0.9
0.1
1.0
(0.0)
100.0
8.3

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 Category(Millions of yen)

Category

For the six months ended
September 30, 2018

For the six months ended
September 30, 201917,528Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Money held in trust
Securities－－－－(3,500)337,453
235,007(3,225)
105,948
109,762(3,814)
(276)
4,164
(802)
4,754
(17,764)(1)
341,831
91,547

Japanese bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency-denominated assets

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

5

31,345－－－－465
394,105
173,584(992)
221,588
224,689(3,100)
(74)
5,297
(684)
(29)
(5,802)(25)
424,672
228,938(4) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2018

Interest income and dividends

For the six months ended
September 30, 201981,798

88,10500Interest income and dividends on securities

73,78479,537

Interest income from loans

3,396

3,500

Income from real estate for rent

4,347

4,860

269

206

Interest income from deposits

Other interest income and dividends
Gains on securities under proprietary accounts
Income from money held in trust, net
Income from trading securities, net
Gains on sale of securities

－

－

2,246

2,282

－

70

3,316

2,317

－

－

3,316

2,317

Gains on sale of foreign securities－－

Others－－Gains on redemption of securities－－

Gains on derivatives, net－－

21,398－－－

Gains on sale of Japanese bonds
Gains on sale of Japanese stocks, etc.

Foreign exchange gains, net
Reversal of reserve for possible loan losses－

1

108,760

92,778Other investment income
Total(5) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2018

Interest expenses

For the six months ended
September 30, 2019
577

2,210

Losses on securities under proprietary accounts－－

Losses on money held in trust, net－－

Losses on trading securities, net

11－

Losses on sale of securities

34－

Losses on sale of Japanese bond－－Losses on sale of Japanese stocks, etc.

34－

Losses on sale of foreign securities

0－

Others

－

－

4,026

2,991

－

－

Losses on valuation of securities
Losses on valuation of Japanese bonds
Losses on valuation of Japanese stocks, etc.
Losses on valuation of foreign securities
Others
Losses on redemption of securities

－

－

4,026

2,991

－

－

－

－

Losses on derivatives, net

19,7044,251

Foreign exchange losses－

10,552

Provision for reserve for possible loan losses

1

26

Write-off of loans－－

Depreciation of real estate for rent and others

800

811

Other investment expenses

1,485

1,180

Total

26,642

22,0246

(6) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)
As of March 31, 2019

Category

As of September 30, 2019

Net valuation gains (losses) recorded inincomeBalance sheet amount

1,321

Trading-purpose securities

Net valuation gains (losses) recorded inincomeBalance sheet amount

(160)

1,505

168

(7) Fair Value Information on Securities
a. Securities with fair value (except trading-purpose securities)(Millions of yen)
As of September 30, 2019

As of March 31, 2019
Category

Net unrealized gains (losses)

Carrying
amountFair value

6,770,008

8,800,847

680,757

764,282－

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses2,030,838

2,051,389

20,551

7,098,288

9,489,328

83,52583,733208

728,802852,912

－

－

－

－

－

964,854

1,132,524

167,670

169,810

2,140

Japanese bonds

867,645

1,024,732

157,086

157,086

Japanese stocks

9,685

19,143

9,458

9,555

Foreign securities

Held-to-maturity securities
Policy-reserve-matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities

Unrealized
gains

Unrealized
losses2,391,039

2,395,532

4,493

124,110124,290

180

－

－

－

－

964,944

1,147,821

182,877

182,95477－873,508

1,036,055

162,546

162,546

－

96

6,429

13,717

7,287

7,364

77

87,357

88,341

984

3,027

2,043

84,84097,69812,85812,858－

Bonds

79,56881,811

2,243

3,027

784

80,04392,902

12,85812,858－Stocks, etc.

7,788

6,529

(1,259)

－

1,259

4,796

4,796

－

－

－

Other securities

165

307

141

141

－

165

350

184

184

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

－

－

Others
Total
Japanese bonds

－

－

－

－

－

－

－

－

8,415,620 10,697,654

2,282,034

2,304,933

22,8998,792,035 11,490,062

2,698,027

2,702,778

4,750

7,858,097 10,129,659

8,026,686 10,588,468

4,673

2,271,562

2,277,594

6,032

2,561,782

2,566,456

Japanese stocks

9,685

19,143

9,458

9,555

96

6,429

13,717

7,287

7,364

77

Foreign securities

547,671548,543872

17,642

16,770758,753

887,526

128,772

128,772－

539,883

542,0142,131

17,642

15,511

753,957

882,729

128,772

128,772－

Stocks, etc.

7,788

6,529

(1,259)

－

1,259

4,796

4,796

－

－

－

Other securities

Bonds

165

307

141

141

－

165

350

184

184

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

Others
Notes:

1. The above table includes assets that 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 ¥232,566 million and ¥37,275 million as of March 31,2019,respectively, and amounted to ¥232,607 million and ¥37,699 million as of September 30, 2019, respectively.

b. Carrying amounts of securities for which fair value cannot be measured reliably
Category(Millions of yen)
As of
September 30, 2019

As ofMarch 31, 2019

Held-to-maturity securities－－

Unlisted foreign bonds－－

Others－－－－Stocks of subsidiaries and affiliated companies

16,276

20,282Available-for-sale securities

5,445

4,971

Policy-reserve-matching bonds

Unlisted domestic stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

355

293

Unlisted foreign bonds
Others
Total

－

－

4,929

4,518

21,72125,2537

c. Fair Value information consisting of those stated in the previous Table a. and Table b. after evaluating foreign exchange and other gains (losses)(Millions of yen)
As of March 31, 2019
Category

Held-to-maturity securities

As of September 30, 2019

Net unrealized gains (losses)
Carrying
amountFair value

Net unrealized gains (losses)

Unrealized
gains

Unrealized
lossesCarrying
amountFair value

Unrealized
gains

Unrealized
losses6,770,008

8,800,847

2,030,838

2,051,389

20,551

7,098,288

9,489,328

2,391,039

2,395,532

4,493

Policy-reserve-matching bonds

680,757

764,282

83,52583,733208

728,802852,912124,110124,290180

Stocks of subsidiaries and affiliated companies

16,276

16,2804

4－

20,282

20,282－－－Available-for-sale securities

970,299

1,141,169

170,869

173,361

2,491

969,915

1,155,224

185,309

185,872

563

Japanese bonds

867,645

1,024,732

157,086

157,086－

873,508

1,036,055

162,546

162,546－

Japanese stocks

9,845

19,303

9,458

9,555

96

6,589

13,877

7,287

7,364

77

87,712

89,867

2,154

4,198

2,043

85,13399,098

13,964

13,964－

Bonds

79,56881,811

2,243

3,027

784

80,04392,902

12,85812,858－Stocks, etc.

8,144

8,055

(88)

1,170

1,259

5,089

6,196

1,106

1,106

－

Other securities

5,095

7,265

2,170

2,521

351

4,683

6,193

1,509

1,996

486

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

8,437,341 10,722,579

2,285,238

2,308,489

23,251

8,817,288 11,517,747

2,700,459

2,705,696

5,237

7,858,097 10,129,659

2,271,562

2,277,594

6,032

8,026,686 10,588,468

2,561,782

2,566,456

4,673

Foreign securities

Total
Japanese bonds
Japanese stocks

17,832

27,290

9,458

9,555

96

18,825

26,113

7,287

7,364

77

Foreign securities

556,316

558,364

2,047

18,817

16,770767,092

896,971

129,878

129,878－

Bonds

539,883

542,0142,131

17,642

15,511

753,957

882,729

128,772

128,772－

Stocks, etc.

16,433

16,349

(84)

1,175

1,259

13,135

14,241

1,106

1,106

－

Other securities

5,095

7,265

2,170

2,521

351

4,683

6,193

1,509

1,996

486

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

(8) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2019
Category

Money held in trust

As of September 30, 2019

Net unrealized gains (losses)

Balance sheet
amountFair value

269,387

269,387

Unrealized
gains

Unrealized
losses－－－Net unrealized gains (losses)

Balance sheet
amountFair value

269,852

269,852

Unrealized
gains

Unrealized
losses－－－Note: The above table includes jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2019 and September 30, 2019, respectively.

Money held in trust for investment
Not applicable(Millions of yen)

Money held in trust for held-to-maturity, policy-reserve-matching and other
As of March 31, 2019
Category

Carrying
amountAs of September 30, 2019

Net unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesCarrying
amountNet unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesMoney held in trust for held-to-maturity

－

－

－

－

－

－

－

－

－

－

Money held in trust for policy-reserve-matching

－

－

－

－

－

－

－

－

－

－

232,071

269,346

37,27537,275－

232,112269,81137,69937,699－Other money held in trust83. Non-consolidated Balance Sheets(Millions of yen)
As ofMar. 31, 2019

As of
Sep. 30, 2019

AmountAmountAssets:Cash and deposits
Deposits
Call loans
Money held in trust
Securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
SoftwareDue from reinsurers
Other assets
Other receivables
Prepaid expenses
Accrued income
Money on deposits
Initial margins of futures markets
Variation margins of futures markets
Derivatives
Cash collateral paid for financial instruments
Advance payments
Others
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses
Reserve for investment losses

82,04682,046
93,700269,387
9,523,877
7,356,090
448
536,373
49,381
1,262,611
318,971
198,410
198,369
41
91,57762,25928,54420
752
26,352
26,352
1,036
81,15439,287
2,345
21,941
5,580
3,279
72
448
7,410
718
71
2,629
14,248(623)(3,650)91,777
91,77787,000269,852
10,039,412
7,494,770
446
589,669
52,011
1,577,876
324,637
203,708
203,66740
91,26262,25927,860448
693
27,441
27,441490
73,82537,434
3,154
22,302
5,642
1,921
1,274
1,198
－
832
64
2,961
14,219(649)(3,886)

Total Assets

10,380,148

10,897,415

9Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Payables under repurchase agreements
Collateral for securities lending transactions
Accrued income tax
Other payables
Accrued expenses
Unearned revenue
Deposits received
Deposits received for guarantee
Variation margins of futures markets
Derivatives
Cash collateral received for financial instruments
Lease obligations
Asset retirement obligations
Suspense receipt
Reserve for employees' retirement benefits
Reserve under the special laws
Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Legal retained earnings
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

As ofMar. 31, 2019

As of
Sep. 30, 2019

AmountAmount9,310,577
37,6109,268,422
4,544
2,073
5,528
469,820
81,474331,055
13,914
2,975
21,071
798
1,321
4,204
753
8,189
－
22
1,898
2,140
28,00250,10550,105
109

9,725,587
39,4459,681,706
4,434
2,110
4,593
559,585
245,893
250,613
16,713
9,456
22,225
875
637
4,532
76
1,113
845
500
1,886
4,215
28,871
51,31851,318109

9,866,217

10,372,176

70,0005,865
5,865
317,777
40,188277,588
277,588393,642
122,727(2,439)120,288
513,930
10,380,148

70,0005,865
5,865
318,367
46,628
271,739271,739394,232
133,445(2,439)131,006
525,239
10,897,415

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

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 on securities
Interest income from loans
Income from real estate for rent
Other interest income and dividends
Income from money held in trust, net
Gains on trading securities, net
Gains on sale of securities
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Proceeds from deferred insurance
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 reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve on policyholders' dividends
Investment expenses
Interest expenses
Losses on trading securities, net
Losses on sale of securities
Losses on valuation 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
Operating expenses
Other ordinary expenses
Deferred insurance payments
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
OthersOrdinary Profit
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 stocks of subsidiaries
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

For the six months ended
September 30, 2018

For the six months ended
September 30, 2019

AmountAmount779,298
542,005
540,877
1,128
231,423
81,798073,784
3,396
4,347
269
2,246
－
3,316
21,398－
122,663
5,868
1,943
2,918
1,006
741,550
200,482
45,222
6,347
43,073
98,856
1,928
5,054
426,877
3,726
423,150
026,642
577
11
34
4,026
19,704
－
1
800
1,485
71,47816,068
5,555
6,440
2,974
1,079
18
37,747
1,078
30
10
1,038
1,038
－
－
62
36,606
11,476(310)
11,16625,44010806,887
665,428
664,298
1,129
134,156
88,105
079,537
3,500
4,860
206
2,282
70
2,317
－
1
41,378
7,302
2,159
4,103
1,039
758,211
222,61347,081
7,174
53,625108,0171,820
4,894
415,119
1,834
413,284
0
22,024
2,210
－
－
2,991
4,251
10,552
26
811
1,180
78,56319,891
7,590
7,387
3,620
1,270
22
48,676
1,741
32
15
1,213
1,213
244
236
128
46,806
17,708(3,692)
14,01532,7905. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the six months ended
September 30, 2018
Core profit

A

Capital gains

For the six months ended
September 30, 201957,86857,53924,715

13,738

Income from money held in trust, net－－

Income from trading securities, net－

63

Gains on sale of securities

3,316

2,317

Gains on derivatives, net－－

21,398－－

11,35640,355

17,821

Losses on money held in trust, net－－

Losses on trading securities, net

19－

Foreign exchange gains, net
Other capital gains
Capital losses

34－

Losses on valuation of securities

4,026

2,991

Losses on derivatives, net

19,704

4,251－

10,552

16,57025

Losses on sale of securities

Foreign exchange losses, net
Other capital losses
Net capital gains (losses)

B(15,639)(4,083)

Core profit plus net capital gains (losses)

A+B

42,22853,455－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loan losses－－

Other one-time gains

－

－

4,481

4,778

OthersOther one-time losses

－

－

4,410

4,682

Provision for specific reserve for possible loan losses

129

Provision for reserve for possible loan losses for specific foreign countries－－

Write-off of loans－－

Losses from reinsurance
Provision for contingency reserve

OthersNet other one-time gains (losses)
Ordinary profit

69

67

C

(4,481)(4,778)

A+B+C

37,747

48,676(Reference) The breakdown of Others(Millions of yen)
For the six months ended
September 30, 2018

Core profit
Income gains in income from money held in trust
Interest income and dividends in income from trading securities
Effects of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital gains
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital losses
Impairment losses from investment partnership
Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other one-time gains
Other one-time losses
Provision of additional policy reserve11

For the six months ended
September 30, 201918,824(9,067)

2,246

2,282

7

6

16,570(11,356)－

11,356－

11,356

16,57025－

25

16,570

－

－

－

69

67

69

67

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

As of March 31, 2019

As of September 30, 2019

Bankrupt and quasi-bankrupt loans

00Doubtful loans－－

Sub-standard loans－－

Subtotal[% to total]
Normal loans
Total

0

0

[0.0]

[0.0]

461,094

400,919

461,094

400,919

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 ofoperations 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 interest 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 ofinterest 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 and loans on which principal and/or interest are past due for three months or more).
4. Normal loans are loans that do not fall under the classifications for 1. to 3. above and where the borrowers have no financial or business performance
problems.

7. Risk-monitored Loans(Millions of yen, %)Category

As of March 31, 2019

As of September 30, 2019－

Bankrupt loans－

Non-accrual delinquent loans

00Past due loans (three months or more)－－

Restructured loans

－

－

Total

0

0

[0.0]

[0.0]

[% to the loan balance]

128. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2019

Total solvency margin(A)

As of September 30, 2019

1,313,033

1,412,885

Common stock, etc.

361,442393,288

Reserve for price fluctuations

50,10551,318Contingency reserve

98,613103,296

General reserve for possible loan losses

20

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

153,782

166,778

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

50,98050,980

－

－

245

1,116

Deferred tax assets

92,924105,309

Excess amount of policy reserves based on Zillmer method

544,688

550,065

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

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(34,281)(1,045)

Deductible items(5,471)(8,221)(B)

101,371

106,432

Insurance risk

R1

24,574

24,425

Third-sector insurance risk

R8

8,526

8,473

Assumed interest rate risk

R2

34,06235,470

Minimum guarantee risk

R7

22,141

23,677

Asset management risk

R336,93539,305Business management risk

R4

2,524

2,627

2,590.5%

2,654.9%

Subordinated debt

Total risk

( R1 + R8 ) 2 + ( R 2 + R3 + R7 ) 2 + R 4

Solvency margin ratio
(A)/

1
× (B)
2

×100

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

13

(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, 2019

Total solvency margin(A)

As of September 30, 2019

1,302,890

1,402,576

Common stock, etc.

360,050

392,388

Reserve for price fluctuations

50,10551,318Contingency reserve

98,613103,296

Catastrophe loss reserve－－

General reserve for possible loan losses

20

Net unrealized gains on available-for-sale securities (before tax deductions) and net deferredgains or losses on hedging instruments (before tax deductions) x 90% (100% if losses)

153,782

166,778

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

50,98050,980Total amount of unrecognized net actuarial gains (losses) and unrecognized past
service cost

(1,791)(1,426)

－

－

245

1,116

Deferred tax assets

92,924105,309

Excess amount of policy reserves based on Zillmer method

544,688

550,065

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

The portion of the excess amount of policy reserves based on Zillmer method
and subordinated debt that is not included in the margin(35,672)(1,945)

Deductible items(11,040)(15,304)(B)

98,666

103,335

R1

24,574

24,425

Ordinary insurance risk

R5

－

－

Major catastrophe risk

R6

－

－

Third-sector insurance risk

R8

8,526

8,473

Insurance risk of small-amount short-term insurance providers

R9

－

－

Assumed interest rate risk

R2

34,06235,470

Minimum guarantee risk

R7

22,141

23,677

Asset management risk

R334,11936,101Business management risk

R4

2,468

2,563

2,641.0%

2,714.6%

Subordinated debt

Total risk
Insurance risk

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

Solvency margin ratio
(A)/

1
× (B)
2

×100

Notes: 1. The above 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 (2011).
2. Minimum guarantee risk is calculated based on the standardized approach.

14

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

Category

As of March 31, 2019

Individual variable life insurance and individual variable annuities

As of September 30, 2019

1,300,701

1,393,296－－

1,300,701

1,393,296

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

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

Individual variable life insurance
As of March 31, 2019

As of September 30, 2019

Category
NumberAmountNumberAmountVariable life insurance (whole life type)

836

7,980,475

833

7,809,614

Variable life insurance (limited term type)152

922,336167

1,045,680

Variable life insurance (term type)12

685,55312

699,443

1,001

9,588,365

1,013

9,554,738

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

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

As of March 31, 2019

As of September 30, 2019

Category
NumberIndividual variable annuities

Amount244

1,483,080

NumberAmount292

1,803,433

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.

10. Consolidated Summary
Not applicable15