May 15, 2019Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Fiscal Year Ended March 31, 2019
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function

P.4

3. Example of Policyholder Dividend, based on Figures for the Fiscal Year Ended March 31, 2019

P.5

4. Status of Investment Assets (General Account)

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

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

P.15

8. Loans by Borrower Category

P.16

9. Risk-monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Account Assets

P.19

12. Consolidated Summary

P.20

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

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

As of March 31, 2018
Category

NumberComparison to
Mar. 31, 2017

As of March 31, 2019

AmountComparison to
Mar. 31, 2017

NumberComparison to
Mar. 31, 2018

AmountIndividual life insurance
7,316
102.9
458,924
103.6
7,513
102.7
476,762
Individual annuities
252
128.5
13,609
133.3
334
132.4
18,946
Subtotal
7,569
103.6
472,534
104.2
7,847
103.7
495,708
Group life insurance－－
19,201
103.7－－
19,033
Group annuities
－
－
100
86.8
－
－
86
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 havecommenced.
2. The policy amount in force for group annuities is equal to the amount of policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2018
Category

Comparison to
FY2016

NumberIndividual life insurance
Individual annuities
SubtotalGroup life insuranceGroup annuities

478
61
540
－
－

100.0
177.9
105.2
－
－

Amount49,121
3,758
52,879582－

Comparison to
FY2016

Amount,of which,
new policies

Amount,of which,increase fromconversion

103.1
195.5
106.7
122.9
－

49,121
3,758
52,879
582
－

－
－
－

Amount,of which,
new policies

Amount,of which,increase fromconversion

For the year ended March 31, 2019
Category

NumberComparison to
FY2017Comparison to
FY2017

AmountIndividual life insurance
520
108.7
55,735113.5
55,735－
Individual annuities
88
144.3
5,769
153.5
5,769
－
Subtotal
609
112.7
61,504116.3
61,504－
Group life insurance
－
－
270
46.4
270
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 paymentscommence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Medical protection, living benefit protection and otherproducts

As of March 31, 2018

Comparison to
Mar. 31, 2017

As of March 31, 2019

Comparison to
Mar. 31, 2018807,437
41,386
848,823

102.6
122.3
103.4

836,267
53,079889,347

103.6
128.3
104.8

191,895

102.4

197,520

102.9(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Medical protection, living benefit protection and otherproducts

For the year ended March
For the year ended MarchComparison toComparison to31, 2018
31, 2019
63,875
9,197
73,073

FY2016
87.8
172.2
93.5

74,702
13,216
87,918FY2017
116.9
143.7
120.3

12,984

82.6

15,251

117.5

Notes:
1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs dependingon 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 carebenefits, etc.)2Comparison to
Mar. 31, 2018

103.9
139.2
104.9
99.1
86.3

(3) Major P/L Items
Category
Income from insurance premiums(Millions of yen, %)For the year ended
March 31, 2018

Comparison
to FY2016

For the year ended
March 31, 2019

Comparison
to FY2017

1,059,269

110.7

1,136,104

107.3

Investment income

243,293

99.2

278,935

114.6

Insurance claims and other payments

436,538117.2

457,252

104.7

Investment expenses

33,121

91.5

24,63874.4

Ordinary profit

56,33893.6

79,812

141.7(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2018

Comparison to
Mar. 31, 2017

As of March 31, 2019

Comparison to
Mar. 31, 2018

9,567,689

107.8

10,380,148

108.5

3

2. Policy Amount in Force by Insurance Function as of March 31, 2019
(Number: Thousand, Amount: 100 millions of yen)
Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountOrdinary death

6,311

458,561

－

－

1,598

19,033

7,910

477,595

Accidental death662

61,574

－

－

12

3

674

61,577

Death protection
with other conditions

317

10,487

－

－

－

－

317

10,487

1,202

18,200334

18,946

0

0

1,536

37,146

Accidental hospitalization

2,713

179

－

－

15

0

2,729

179

Disease hospitalization

2,713

179

－

－

－

－

2,713

179

Hospitalization
with other conditions

828

68

－

－

－

－

828

68

Disability protection

839

－

－

－

15

－

854

－

Surgery protection

1,710

－

－

－

－

－

1,710

－

Total

Category
AmountDeath protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category

Living protection

Category

NumberAmount46

86－

Medical protection
insurance
NumberHospitalization protection

Number－Amount－

Total
NumberAmount46

86

Disability insurance
Category

AmountNumber－Disability protection－

Notes:
1. The numbers of policies for group life insurance products, and group annuity product reflects the total numbers of insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities and group life insurance(annuity payment rider) is equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies
for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments
have commenced. The policy amount in force for group annuity products is the amount of policy reserves.
3. Figures for hospitalization protection show the daily benefits for hospitalization.

4

Amount－3. Example of Policyholder Dividend, based on Figures for the Fiscal Year Ended March 31, 2019(1) Standard dividend yields for semi-participating individual life insurance and individual annuities with
policyholder dividends every five years
For the year
For the year
ended March 31, ended March 31,
2019
2018
Level-premium

Assumed interest rates of 1.00% or less

0.70%

0.65%

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

1.55%

1.50%

Assumed interest rates of more than 2.00%

1.40%

1.35%

Assumed interest rates of 0.85% or less

0.35%

0.30%

Assumed interest rates of more than 0.85%, 2.00% or less

1.20%

1.15%

Assumed interest rates of more than 2.00%

1.05%

1.00%

Single premium and others(2) The following is an example of policyholder dividends for semi-participating whole life nursing care insurance(before annuity payments commence) using figures for the year ended March 31, 2019.
Example: Semi-participating whole life nursing care insurance (before nursing care annuity payments commence)Entered at 30, male, single premium,10x death benefit, basic care annuity amount of 0.5 million yen(sales suspension in July 2016)

Contract Date

Assumedinterest rate

November 2, 2015
November 2, 2014
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009Years
elapsed
1.00%
1.00%
1.00%
1.50%
1.50%
1.50%
1.50%

4 years
5 years
6 years
7 years
8 years
9 years
10 yearsOngoing
policy(yen)

Policies to which
nursing care applies,
ending at death of policyholder(yen)－36,459－－－－028,60236,459
5,873
0
0
0
0

Note:
1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable fornursing care or upon death. The number of years elapsed is the number through November 2, 2019.
2. The amount of policyholders' dividends above is the sum of the pro-rated dividend amount (policy reserve x dividend participation
ratio) and interest through November 2, 2019 (excluding dividends already paid).
Dividend participation ratio = Standard dividend yield - Assumed interest rate(3) Standard dividend yield on group annuities
The standard dividend yield on group annuities is 0.60%, using figures for the fiscal year ended March 31, 2019.
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve x Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group term life insurance and other products, a reserve for policyholders’ dividends isaccumulated in accordance with each product’s characteristics

5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2019(1) Status of Investment Assets for the Year Ended March 31, 2019i) Investment Environment
During the fiscal year ended March 31, 2019, the Japanese economy grew moderately. While capital spending by
Japanese companies to address the worker shortage and to improve productivity was strong, exports slowed in thesecond half of the fiscal year against the backdrop of the US-China trade friction. Overall, however, the Japanese
economy remained on the growth course. Prices rose in 27 consecutive months with the core consumer price index in
March increasing 0.5% year on year. The October-December real GDP* grew 0.5% quarter on quarter (annualized
growth rate of 1.9%). Looking at respective components, the sustained economic growth was confirmed with private
consumption growing 0.4% quarter on quarter and private-sector capital expenditure increasing 2.7% from the previous
quarter.
The bond market saw the declining yields on Japanese government bonds (JGBs). Although the yield on 10-year
JGBs rose in the first half of the fiscal year on the back of the Bank of Japan’s revised monetary easing measures in July,it turned to a downward trajectory from October 2018 to March 2019 due to the growing investment appetite ofdomestic and overseas investors for JGBs as a result of the rising concern over the deterioration of the global economy
caused by the US-China trade friction and the ensuing shift in European and US central banks’ stance to a dovish
position. The long-term interest rate as of March 31, 2019 was negative 0.082% (down 0.125 percentage point from ayear earlier).
Stock markets fell year on year.

After limited price movements in the first half of the fiscal year against thebackground of the US-China trade friction and uncertainties concerning emerging country currencies, the markets rose
toward the end of September as these concerns abated. Thereafter, however, the rekindled trade friction and the
US-Japan trade talks weighed on the markets, which trended downward until December 2018. From thereon until theend of the fiscal year, the Nikkei Stock Average rose as excessive anxiety receded with economic indicators starting tohit bottom and the expectation grew that Japan, the US, and Europe would continue their monetary easing policies. The
Nikkei Stock Average stood at ¥21,205.81 as of March 31, 2019 (down ¥248.49 from a year earlier).
The Japanese yen overall depreciated against the US dollar, albeit with some fluctuations. In the first half of the fiscal
year, the yen weakened against the US dollar due to factors such as the interest rate differentials between the twocountries. Between October and December 2018, USD/JPY moved within a small range between ¥112 and ¥114. As
concerns grew over the US-China trade friction and over corporate performance, the yen appreciated to around ¥108 in
January 2019. Thereafter, a sense of security grew in the market due to factors such as the US and European monetary
authorities’ decision to keep the anticipated interest rate hike on hold. As a result, the yen depreciated between January
and March 2019. USD/JPY as of March 31, 2019 was ¥110.99, with the yen slightly weakening from the ¥106.24
recorded as of March 31, 2018.

6ii) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of
the characteristics of insurance liabilities and prioritizing investments in assets that have corresponding
characteristics. Specifically, as life insurance policies represent long-term liabilities, we invest primarily inultralong-term JGBs that have a long term remaining until maturity. This approach allows us to appropriately
control the risks associated with interest rate fluctuations on insurance liabilities. Meanwhile, we limit ourinvestments in risky investments such as equities.
iii) Results of Investment
As of March 31, 2019, general account assets totaled ¥9,079.4 billion, up 7.6%, or ¥640.5 billion, from a year earlier.
Within general account assets, Japanese bonds (including JGBs) totaled ¥7,745.3 billion (accounting for 85.3% of
total general account assets), foreign bonds ¥542.1 billion (6.0%), Japanese stocks ¥28.6 billion (0.3%), money heldin trust ¥269.3 billion (3.0%), policy loans ¥198.3billion (2.2%), real estate ¥90.8 billion (1.0%), and cash and cash
deposits and call loans ¥61.9 billion (0.7%).

7

(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, 2018
Amount40,862－－－－
270,582
7,717,905
7,281,144
38,464
396,910366,571
30,3391,385
189,486
92,346
10,787
117,195(295)
8,438,872
409,863

As of March 31, 2019

%
0.5
－
－
－
－
3.2
91.5
86.3
0.5
4.7
4.3
0.4
0.0
2.2
1.1
0.1
1.4
(0.0)
100.0
4.9

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

%
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

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 year ended March 31, 2018

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

(33)
－
－
－
－
(3,295)543,978
452,401
805
91,06492,264(1,199)(292)
9,112(25,178)
5,437
24,867(23)554,864
100,817

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.

8

For the year ended March 31, 201921,135－－－－(1,194)
621,785
464,197(9,852)
167,755
175,555(7,799)(314)
8,924(1,542)
3,461(11,665)(328)
640,574
152,232(4) Investment Income(Millions of yen)

Category

For the year ended March 31, 2018

Interest income and dividends

For the year ended March 31, 2019

157,72700140,435

150,733

Interest income from deposits
Interest income and dividends on securities

166,937

Interest income from loans

6,610

6,828

Income from real estate for rent

10,285

8,831

Other interest income and dividends

395

543

Gains on securities under proprietary accounts

－

－

4,490

4,490

Income from money held in trust, net
Income from trading securities, net

2－

Gains on sale of securities

0

6,107

Gains on sale of Japanese bonds

0－

Gains on sale of Japanese stocks, etc.

－

6,107

Gains on sale of foreign securities－－

Others－－Gains on redemption of securities

1－

Gains on derivatives, net－－

Foreign exchange gains, net－

13,455

－

－

138

－

162,361

190,990

Reversal of reserve for possible loan losses
Other investment income
Total(5) Investment Expenses(Millions of yen)

Category

For the year ended March 31, 2018

Interest expenses

For the year ended March 31, 2019

151

1,604

Losses on securities under proprietary accounts－－

Losses on money held in trust, net－－

Losses on trading securities, net－

126

Losses on sale of securities

034

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

－

34

Losses on sale of foreign securities

00

Others

－

－

－

4,026

Devaluation losses on Japanese bonds－－

Devaluation losses on Japanese stocks, etc.

－－

Devaluation losses on foreign securities

－

4,026

Others－－Devaluation losses on securities

2－

Losses on derivatives, net

11,403

13,925

Foreign exchange losses

15,280－23

329

Losses on redemption of securities

Provision for reserve for possible loan losses－－

Depreciation of real estate for rent and others

1,770

1,599

Other investment expenses

4,487

2,992

Total

33,121

24,638

Write-off of loans9(6) Investment Efficiency(i) Investment yield by type of asset(%)

For the year ended
March 31, 2018

For the year ended
March 31, 2019

0.00

0.00

Securities repurchased under resale agreements－－

Pledged money for bond borrowing transaction－－

Monetary claims purchased－－

Securities under proprietary accounts－－

Money held in trust

1.93

1.93

Securities

1.68

2.11

Japanese bonds

1.81

1.76

Japanese stocks

3.22

32.26

Foreign securities(1.21)

6.39

Loans

3.60

3.55

Real estate

5.86

5.81

Total

1.63
(1.19)

1.94
6.30

Category
Cash and deposits, call loans

Overseas investment
Notes:

1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment
income minus investment expenses under ordinary profit (loss).
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.
3. Yield on overseas investment is a total of foreign currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2018
Category

Trading-purpose securities

As of March 31, 2019

Net valuation gains(losses) recorded inincomeBalance sheet
amount－10(31)

Balance sheet
amount1,321

Net valuation gains(losses) recorded inincome(160)

(ⅲ) Fair Value Information on Securities
a. Securities with fair value (except trading-purpose securities)(Millions of yen)
As of March 31, 2018
Category

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

As of March 31, 2019

Net unrealized gains (losses)

Carrying
amountFair value

6,467,997

8,050,644

401,958

436,842－Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses

Unrealized
gains

Unrealized
losses

1,582,646

1,640,383

57,7366,770,008

8,800,847

34,88435,9391,055

680,757

764,2822,030,838

2,051,389

20,551

83,52583,733

－

－

－

－

－

208

－

－

－

921,995

1,091,187

169,192

172,541

3,349－

964,854

1,132,524

167,670

169,810

2,140－

Japanese bonds

847,062

1,002,106

155,044

155,044－867,645

1,024,732

157,086

157,086

Japanese stocks

13,68530,66816,982

17,00825

9,685

19,143

9,458

9,555

96

Foreign securities

61,081

58,125(2,955)

368

3,323

87,357

88,341

984

3,027

2,043

Bonds

49,39846,689(2,709)

368

3,077

79,56881,811

2,243

3,027

784

Stocks, etc.

11,682

11,436

(245)

－

245

7,788

6,529

(1,259)－

1,259

Other securities

165

286

120

120

－

165

307

141

141

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

7,791,950

9,578,673

1,786,723

1,848,865

62,142

8,415,620

10,697,654

2,282,034

2,304,933

22,899Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,037

7,858,097

10,129,659

2,271,562

2,277,594

6,032

Japanese stocks

13,68530,66816,982

17,00825

9,685

19,143

9,458

9,555

96

Foreign securities

380,962

362,434(18,528)

4,550

23,078547,671548,543872

17,642

16,770

Bonds

369,280

350,998(18,282)

4,550

22,832539,883

542,0142,131

17,642

15,511

Stocks, etc.

11,682

11,436

(245)

－

245

7,788

6,529

(1,259)－

1,259

Other securities

165

286

120

120

－

165

307

141

141

－

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit
Others

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

－
－

Total

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 ¥232,484 million and ¥38,552 million as of March 31, 2018,
respectively, and amounted to ¥232,566 million and ¥37,275 million as of March 31, 2019, respectively.

b. Carrying amounts of securities for which fair value cannot be measured reliably(Millions of yen)
Category

As of March 31, 2018

As of March 31, 2019

Held-to-maturity securities－

Unlisted foreign bonds－－－

Others－－－－Stocks of subsidiaries and affiliated companies

15,926

16,276

Available-for-sale securities

Policy-reserve-matching bonds

7,719

5,445

Unlisted domestic stocks (except OTC stocks)

159

159

Unlisted foreign stocks (except OTC stocks)

590

355

Unlisted foreign bonds

－

－

6,968

4,929

23,64521,721OthersTotal

11

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, 2018
Category

Held-to-maturity securities

As of March 31, 2019

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Unrealized
losses6,467,997

8,050,644

1,582,646

1,640,383

57,7366,770,008

8,800,847

2,030,838

2,051,389

20,551

Policy-reserve-matching bonds

401,958

436,842

34,88435,9391,055

680,757

764,282

83,52583,733208

Stocks of subsidiaries and affiliated companies

15,92615,926－－－

16,276

16,2804

4－

Available-for-sale securities

929,714

1,103,060

173,345

176,918

3,572

970,299

1,141,169

170,869

173,361

2,491

Japanese bonds

847,062

1,002,106

155,044

155,044－867,645

1,024,732

157,086

157,086－

Japanese stocks

13,84530,82816,982

17,00825

9,845

19,303

9,458

9,555

96

Foreign securities

2,043

61,671

59,702(1,968)

1,354

3,323

87,712

89,867

2,154

4,198

Bonds

49,39846,689(2,709)

368

3,077

79,56881,811

2,243

3,027

784

Stocks, etc.

12,27313,013

740

986

245

8,144

8,055

(88)

1,170

1,259

Other securities

7,134

10,422

3,287

3,510

222

5,095

7,265

2,170

2,521

351

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

7,815,596

9,606,473

1,790,876

1,853,241

62,3658,437,341

10,722,579

2,285,238

2,308,489

23,251

Japanese bonds

7,397,136

9,185,284

1,788,148

1,827,186

39,037

7,858,097

10,129,659

2,271,562

2,277,594

6,032

Japanese stocks

21,482

38,464

16,982

17,00825

17,832

27,290

9,458

9,555

96

Foreign securities

389,842

372,301(17,541)

5,536

23,078556,316

558,364

2,047

18,817

16,770

Bonds

369,280

350,998(18,282)

4,550

22,832539,883

542,0142,131

17,642

15,511

Stocks, etc.

20,562

21,302

740

986

245

16,433

16,349

(84)

1,175

1,259

Other securities

7,134

10,422

3,287

3,510

222

5,095

7,265

2,170

2,521

351

Monetary claims purchased

－

－

－

－

－

－

－

－

－

－

Certificates of deposit

－

－

－

－

－

－

－

－

－

－

Others

－

－

－

－

－

－

－

－

－

－

Total

(8) Fair Value Information on Money Held in Trust(Millions of yen)
As of March 31, 2018
Category

Balance sheet
amountAs of March 31, 2019

Net unrealized gains (losses)
Fair value

Unrealized
gains

Unrealized
lossesBalance sheet
amountNet unrealized gains (losses)
Fair value

270,582
270,582－－
269,387
269,387－
Note: The above table includes jointly invested money held in trust, which amounted to ¥40 million as of March 31, 2018 and March 31, 2019, respectively.
Money held in trust

Unrealized
gains

Unrealized
losses－－－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, 2018
Category

Carrying
amountAs of March 31, 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

－

－

－

－

－

－

－

－

－

－

231,989

270,541

38,55238,552－232,071

269,346

37,27537,275－

Other money held in trust

125. Non-consolidated Balance Sheets(Millions of yen)
As of
As of
March 31, 2018 March 31, 2019
AmountAssets: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
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
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

Total Assets

As of
As of
March 31, 2018 March 31, 2019

Amount53,68353,68365,500270,582
8,765,967
6,966,434
1,543
461,01588,376959,188289,408
189,486
189,460
25
93,16962,25930,087
5
816
23,21023,2018
929
92,18437,411
1,983
19,627
5,428
18,324
892
7,969

－

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)9,567,689

10,380,148

－

470
75
2,483
10,787(295)

AmountAmountLiabilities:
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
Derivative liabilities
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

8,606,736
35,1768,566,075
5,484
1,873
5,497
386,099
31,696
303,889
13,4783,249
20,325
764
1,237
4,202
2,194
1,410
6
1,856
1,787
26,65647,92947,929109

9,310,577
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

Total Liabilities

9,074,902

9,866,217

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

70,0005,865
5,865
294,424
34,938259,486
259,486
370,289
124,936(2,439)122,497492,787
9,567,689

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

13

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

For the year ended
March 31, 2018
Amount1,351,076
1,059,269
1,056,725
2,544
243,293
157,7270140,435
6,610
10,285
395
4,490
2
0
1
－
138
80,93248,513
5,065
39,5373,910
1,294,738
436,538
92,342
12,566
119,294
199,2633,314
9,756
638,3432,211
636,1310
33,121151－
0－
2
11,403
15,280
23
1,770
4,487
139,937
46,79625,487
12,647
5,376
2,981
304
56,33816,89813,258
3,640
6,190
89
0
1,924
1,924
4,176
－
3,271
63,774
23,224(4,583)18,64045,134

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
Gains on redemption 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 on trading securities, net
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Deferred insurance payments
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
OthersOrdinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Reversal of reserve for investment loss
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 affiliated companies
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income

14

For the year ended
March 31, 2019
Amount1,464,218
1,136,104
1,132,732
3,372
278,935
166,9370150,733
6,828
8,831
543
4,490
－
6,107
－
13,455－87,944
49,1784,027
43,0462,104
1,384,406
457,252
92,997
13,489131,824
204,351
3,659
10,929704,780
2,433
702,346
0
24,638
1,604
126
34
4,026
－
13,925
－
329
1,599
2,992
146,984
50,75028,655
13,419
6,248
2,402
25
79,812
－
－
－
5,929
63
39
2,175
2,175
－
3,650
2,146
71,73725,328(3,194)
22,13449,602

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended March 31, 2018

For the year ended March 31, 2019

81,384

97,242

9,894

19,562

Income from money held in trust, net－－

Income from trading securities, net－－

Gains on sale of securities

0

6,107

Gains on derivatives, net－－

Foreign exchange gains, net－

13,455

Core profit

A

Capital gains

Other capital gains
Capital losses

9,894

－

27,357

27,847

Losses on money held in trust, net－－

Losses on trading securities, net

8

144

Losses on sale of securities

0

34

－

4,026

Losses on derivatives, net

11,403

13,925

Foreign exchange losses, net

15,280

－

664

9,716

Devaluation losses on securities

Other capital losses
Net capital gains (losses)

B(17,463)(8,284)

Core profit plus net capital gains (losses)

A+B

63,92088,957－－

Gains from reinsurance－－

Reversal of contingency reserve－－

Reversal of specific reserve for possible loan losses－－

Others

－

－

7,582

9,145

－

－

Other one-time gains

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

7,451

8,698

Provision for specific reserve for possible loan losses

23

326

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

Write-off of loans－－

OthersNet other one-time gains (losses)
Ordinary profit

107

119

C

(7,582)(9,145)

A+B+C

56,33879,812For the year ended March 31, 2018

For the year ended March 31, 2019

4,502

14,224

4,490

4,490

(Reference) The breakdown of Others

Core profit
Income gains in income from money held in trust
Interest income and dividends in income from trading securities

1117

Effects of currency market fluctuations of products dominated in foreign currencies (note)

－

9,716

9,894

－

Other capital gains

9,894

－

664

9,716

Impairment losses from investment partnership

664－

Effect of change in the exchange rates related to foreign currency-denominated insurance contracts

－

9,716

"Others" of other one-time gains－－"Others" of other one-time losses

107

119

107

119

Effect of change in the exchange rates related to foreign currency-denominated insurance contracts
Other capital losses

Provision of additional policy reserve

Note: Beginning from disclosures for the fiscal year ending March 31, 2019, the disclosure method of the breakdown of core profit relating to the effect of change in the exchange rates related toforeign currency-denominated insurance contracts have been modified. Although, this change has no impact on core profit.

15

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

As of March 31, 2018

As of March 31, 2019

Bankrupt and quasi-bankrupt loans－

0

Doubtful loans－－

Sub-standard loans－－

Sub-total－0[% to total]

[－]

[0.0]

428,359

461,094

428,359

461,094

Normal loans
Total

Notes:
1．Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization,
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2．Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3．Sub-standard loans are loans on which principal and/or interests are past due for three months or more (excluding loans
described in notes 1. and 2. above) and loans on which terms and conditions have been amended in favor of the borrowers(e.g. reduction of the original interest rate, deferral of interest payments, extension of principal repayments or debt waiver)in order to support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2. above andloans on which principal and/or interest are past due for three months or more).
4．Normal loans are loans that do not fall under the classifications for 1. to 3. above and where the borrowers have no financial
or business performanceproblems.

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

As of March 31, 2018
－
－
－
－
－
[－]

Bankrupt loans
Non-accrual delinquent loans
Past due loans (3 months or more)
Restructured loans
Total[% to the loan balance]

16

As of March 31, 2019
－
0
－
－
0
[0.0]

10. Solvency Margin Ratio(Millions of yen)

Category

As of March 31, 2018

Total solvency margin(A)

As of March 31, 2019

1,233,854

1,313,033

Common stock, etc.

344,039

361,442

Reserve for price fluctuations

47,92950,105

Contingency reserve

89,91598,6130

2

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)

156,011

153,782

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

29,83050,980

－

－

377

245

Deferred tax assets

88,661

92,924

Excess amount of policy reserves based on Zillmer method

525,389544,688－－

The portion of the excess amount of policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(43,128)(34,281)

Deductible items(5,171)(5,471)(B)

94,030101,371

Insurance risk

R1

24,337

24,574

Third-sector insurance risk

R8

8,587

8,526

Assumed interest rate risk

R232,452

34,062

Minimum guarantee risk

R7

20,137

22,141

Asset management risk

R332,95336,935Business management risk

R4

2,369

2,524

2,624.3%

2,590.5%

General reserve for possible loan losses

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

Subordinated debt

Total risk

( R1 + R8 ) 2 + ( R 2 + R3 + R 7 ) 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.

17

(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, 2018

Total solvency margin(A)

As of March 31, 2019

1,217,876

1,302,890

Common stock, etc.

340,820

360,050

Reserve for price fluctuations

47,92950,105

Contingency reserve

89,91598,613

Catastrophe loss reserve－－

General reserve for possible loan losses

02

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)

156,011

153,782

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

29,83050,980Total amount of unrecognized net actuarial gains (losses) and unrecognized past
service cost

(2,419)(1,791)

－

－

377

245

Deferred tax assets

88,661

92,924

Excess amount of policy reserves based on Zillmer method

525,389544,688

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(46,347)(35,672)

Deductible items(12,290)(11,040)(B)

91,362

98,666

Insurance risk

R1

24,337

24,574

Ordinary insurance risk

R5

－

－

Major catastrophe risk

R6

－

－

Third-sector insurance risk

R8

8,587

8,526

Insurance risk of small-amount short-term insurance providers

R9

－

－

Assumed interest rate risk

R232,452

34,062

Minimum guarantee risk

R7

20,137

22,141

Asset management risk

R330,14934,119Business management risk

R4

2,313

2,468

×100

2,666.0%

2,641.0%

Subordinated debt

Total risk

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

Solvency margin ratio
(A)/

1
× (B)
2

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.

18

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

Category

As of March 31, 2018

Individual variable life insurance and individual variable annuities

As of March 31, 2019

1,128,817

1,300,701－－

1,128,817

1,300,701

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

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

As of March 31, 2018

As of March 31, 2019

Category
NumberAmountNumberAmountVariable life insurance (whole life type)843

8,384,508

836

7,980,475

Variable life insurance (limited term type)122

628,240

152

922,3366

301,218

12

685,553972

9,313,967

1,001

9,588,365

Variable life insurance (term type)
Total
Note: Amounts include the rider portion of variable life insurance.

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

As of March 31, 2018

As of March 31, 2019

Category
NumberIndividual variable annuities

Amount162

945,144

NumberAmount244

1,483,080

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.

19

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)Category
Cash and deposits, call loans

As of March 31, 2018
AmountAs of March 31, 2019

Composition

AmountComposition

78,321

6.9

113,749

8.7

1,048,062

92.8

1,184,185

91.0Japanese bonds

147,849

13.1

147,570

11.3

Japanese stocks

49,911

4.4

20,7701.6

Foreign securities

562,27749.8

697,945

53.7

Foreign bonds

77,3506.9

86,546

6.7

Foreign stocks, etc.

484,92743.0

611,39847.0

288,02225.5

317,900

24.4

Loans

－

－

－

－

Other

2,434

0.2

2,766

0.2

－

－

－

－

1,128,817

100.0

1,300,701

100.0

Securities

Other securities

Reserve for possible loan losses
Total

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

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

For the year ended March 31, 2018 For the year ended March 31, 2019

Interest income and dividends

16,526

18,913

Gains on sale of securities

30,392

49,66232

50

Valuation gains on securities

258,562

298,688

Foreign exchange gains, net－－

Gains on derivatives, net－－

Other investment income

0

4,453

1,937

10,171

83

76

221,586

268,458

Foreign exchange losses, net

719

1,983

Losses on derivatives, net－－

Other investment expenses

253

3,134

Net investment gains (losses)

80,932

87,944

Gains on redemption of securities

Losses on sale of securities
Losses on redemption of securities
Devaluation losses on securities

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

12. Consolidated Summary
Not applicable20