Consolidated Financial Summary (Japanese GAAP)
for the three months Ended June 30, 2010
August 12, 2010

Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index_en.html)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)1.

Consolidated financial results for the three months ended June 30, 2010
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the three months ended
June 30, 2010
For the three months ended
June 30, 2009

Millions of yen% change

240,546(3.1)

248,117

15.4

Millions of yen

Net Income% change

Millions of yen% change

19,558(10.8)

10,371(17.1)

21,93557.2

12,504

59.7

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the three months ended
June 30, 2010
For the three months ended
June 30, 2009

4,768.61—

5,749.09—(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of June 30, 2010

6,085,475

283,057

4.7

130,141.52

As of March 31, 2010

6,001,088

269,439

4.5

123,880.11

Notes: 1. Shareholders’ equity:

As of June 30, 2010: ¥283,057 million
As of March 31, 2010: ¥269,439 million
2. The net asset ratio is computed by dividing the amount of total net assets by total assets at the end of the fiscal period.

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2010
For the year ending
March 31, 2011
For the year ending
March 31, 2011
(forecast)

1st quarterYen—

2nd quarterYen

3rd quarter
Yen

Year-end
Yen

Annual Total
Yen

0.00

—

3,000.00

3,000.00

0.00—

3,000.00

3,000.00—

3. Forecast of consolidated financial results for the year ending March 31, 2011
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

Ordinary Profit

Millions of yen % change Millions of yen

For the six months ending
September 30, 2010
For the year ending
March 31, 2011

Net Income per
Share

Net Income% change

Millions of yen% changeYen

483,000

0.4

41,0003.9

23,000(1.7)

10,574.72

974,000(0.5)

74,000(12.3)

40,000(16.9)

18,390.80

4. Other Information(Note) Please refer to “2.Other information” on page 19, for details.
(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying
changes in scope of consolidation): None
(Note) This item indicates whether there were changes in significant subsidiaries affecting the scope of consolidation
during this period.
(2) Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements: Yes(Note) This item indicates whether there was adoption of simplified accounting methods and special accounting
methods for presenting quarterly consolidated financial statements.
(3) Changes in accounting policies, procedures and presentation(a) Changes due to revision of accounting standards: Yes(b) Changes due to other reasons: None
(Note) This item indicates whether there were changes of accounting policies applied, procedures and disclosures forpresenting quarterly consolidated financial statements, described in “Changes in Bases of Presenting Quarterly
Consolidated Financial Statements.”(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2010:
2,175,000 shares
As of March 31, 2010:
2,175,000 shares(b) Number of treasury shares
As of June 30, 2010:— shares
As of March 31, 2010:— shares(c) Weighted-average number of shares
For the three months ended June 30, 2010:
2,175,000 shares
For the three months ended June 30, 2009:
2,175,000 shares

Review of quarterly financial statements
・Quarterly financial statements in this documents are not reviewed or audited by PricewaterhouseCoopers Aarata in accordancewith Article 193-2-1 of the Financial Instruments and Exchange Law.

Content of Supplemental Materials
I． Consolidated Operating Result for the Three Months Ended June 30, 2010
1. Consolidated Operating Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
2. Operating Results of Main Subsidiaries・・・・・・・・・・・・・・・・・・・・・・・ 3
3. Consolidated Financial Forecast for the Year Ending March 31, 2011 ・・・・・・・ 15
4. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16
II． Other Information
1. Changes in scope of consolidation during the period under review・・・・・・・・・ 19
2. Simplified accounting methods and accounting methods used specifically forquarterly consolidated financial statements ・・・・・・・・・・・・・・・・・・・ 19
3. Changes in accounting policies, procedures and presentation・・・・・・・・・・・ 19
III． Consolidated Financial Statements
1. Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20
2. Consolidated Statements of Income ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
3. Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25
4. Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26

The Conference Call for explaining the SFH Group financial results will be held at 17:30, August 12, 2010. We
are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on August 12, 2010, and its Q&A summary lateron Presentation Materials page on our website.
Also, on August 12, 2010, we will upload Guidance on the Value of Existing Business, a Portion of Sony Life’s
Market Consistent Embedded Value (MCEV), as of June 30, 2010.
Please see futher details at our website:
http://www.sonyfh.co.jp/index_en.html

1

I. Consolidated Operating Results for theThree Months Ended June 30, 2010

1. Consolidated Operating Results

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2010 (1)FY09.1Q

FY10.1Q

Change(Billions of yen)

Ordinary revenues

248.1

Ordinary profit(3.1%)

240.5

Life
insurancebusiness

Ordinary revenues

223.2

214.1

(9.1)

(4.1%)

Ordinary profit

20.7

18.5

(2.2)

(10.6%)

Non-life
insurancebusiness

Ordinary revenues

17.4

19.0

+1.5

+8.9%

Ordinary profit

0.9

0.4

(0.4)

(47.9%)

Ordinary revenues

7.6

7.7

+0.0

+0.8%

Ordinary profit

0.2

0.5

+0.2

+100.0%

(0.3)

(0.4)

(0.0)

－

0.0

0.0

+0.0

+41.3%

Bankingbusiness
Corporateandelimination(10.8%)

21.9

Ordinary revenues
Ordinary profit

Consolidated

FY09.1Q

248.1

240.5

(7.5)

(3.1%)

Ordinary profit

21.9

19.5

(2.3)

(10.8%)Net income

12.5

10.3

(2.1)

(17.1%)

09.6.30

10.3.3110.6.30

Change from 10.3.31

Total
assets5,452.7

6,001.0

6,085.4

+84.3

+1.4%

Net
assets

231.1

269.4

283.0

+13.6

+5.1%

Ordinary revenues

19.5

FY10.1Q(Billions of yen)(Billions of yen)

Consolidated

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

2

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2010 (2) Life Insurance: Ordinary revenues decreased year on year. This was because the deteriorationin financial market conditions prompted a loss on separate accounts, net, compared with a gaina year earlier, although income from insurance premiums increased owing to steady increases
in the new policy amount and in the policy amount in force. Ordinary profit decreased, due
primarily to a change from the previous year’s reversal of policy reserve for minimum guarantee
for variable life insurance to a provision in the current period, resulting from the aforementioned
deteriorated performance on separate account assets, despite a higher gain from investment,
net, on general account assets.
 Non-life Insurance: Ordinary revenues increased year on year, owing to an increase in net

premiums written, reflecting a growing number of in-force policies primarily for automobile
insurance. However, ordinary profit decreased, due to an increase in net losses paid forautomobile insurance.
 Banking business: Ordinary revenues remained roughly flat year on year. Gross operating

profit increased owing mainly to an increase in interest income on loans led by a growing
balance of mortgage loans, and improved investment performance. Operating expenses
increased owing mainly to an increase in system-related expenses. Consequently, ordinary
profit increased year on year.
 Consolidated ordinary revenues decreased 3.1% year on year, to ¥240.5 billion, consolidated

ordinary profit decreased 10.8%, to ¥ 19.5 billion, and consolidated net income decreased
17.1%, to ¥ 10.3 billion.

I. Consolidated Operating Results for theThree Months Ended June 30, 2010

2. Operating Results of Main Subsidiaries

3

Highlights of Operating Performance:
Sony Life (Non-Consolidated)(Billions of yen)

Ordinary revenues

223.2

Ordinary profit(4.1%)

FY09.1Q

Ordinary revenues

214.1(9.2%)

18.8

223.2

214.1

(9.1)

(4.1%)

165.9

182.6

+16.7

+10.1%

Investment income(46.4%)

56.5

30.3

(26.2)

Interest income and dividends

15.7

20.5

+4.8

+30.8%

Income from monetary trusts, net

4.1

2.3

(1.8)

(44.1%)

Gains on sale of securities

6.6

7.4

+0.8

+12.1%

Gains on separate accounts, net

28.8

－

(28.8)(100.0%)(3.6%)

202.4

195.2

(7.1)

Insurance claims and other payments

66.8

67.7

+0.9

+1.4%

Provision for policy reserve and others

103.2

67.2

(35.9)(34.8%)

Investment expenses

FY09.1Q

ChangeIncome from insurance premiums

Ordinary expenses

20.7

FY10.1Q

FY10.1Q(Billions of yen)

6.2

32.9

+26.7

+427.5%Losses on sale of securities

3.6

0.4

(3.1)

(86.8%)

Losses on separate accounts, net

－

30.0

+30.0

－

23.1

23.8

+0.7

+3.3%

Operating expenses

Ordinary revenues and ordinary profit decreased year onyear.
Income from insurance premiums increased due to anincreased policy amount in force.
Investment income decreased.

Ordinary profit

20.7

18.8

(1.9)

(9.2%)Net income

11.8

10.1

(1.6)

(13.9%)

09.6.30

10.3.3110.6.30

Ordinary profit decreased, due primarily to a change fromthe previous year’s reversal of policy reserve for minimum
guarantee for variable life insurance to a provision in thecurrent period, resulting from the aforementioned
deteriorated performance on separate account assets,
despite a higher gain from investment, net, on generalaccount assets.

Securities

2,958.4

3,539.1

3,646.2+107.0+3.0%

Policy reserves

3,694.8

3,985.6

4,052.1

+66.5

+1.7%

Total net assets

158.8

191.3

205.2

+13.9

+7.3%

17.2

15.4

26.2

+10.7

+69.5%

3,918.9

4,286.5

4,343.1

+56.5

+1.3%

312.9

373.6

349.4

(24.1)(6.5%)(Billions of yen)

Net unrealized gains/losses onother securities
Total assets

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Separate account assets

Change from 10.3.31

Overview of Performance:
Sony Life (Non-Consolidated)(Billions of yen)

FY09.1Q

FY10.1Q

ChangeNew policy amount

932.2

1,065.3+14.3%

Lapse and surrender amount

543.2

527.8

(2.8%)

Lapse and surrender rate

1.67%

1.58%

(0.09pt)

Policy amount in force

32,720.8

33,819.2+3.4%

Annualized premiums from newpolicies

16.0

18.1

+13.1%Of which, third-sector
products

3.9

4.1

+5.0%

Annualized premiums frominsurance in force

552.8

582.4

+5.4%

Of which, third-sector
products

128.3

135.0

+5.2%

(Billions of yen)

FY09.1Q

ChangeFY10.1Q

Gains from investment, net(General account)

21.4

27.4

+28.2%

Core profit

16.5

11.7

（28.8%）

Negative spread

4.5

2.6

（42.2%）

Solvency Margin Ratio

09.6.30

10.3.3110.6.30

2,264.3%

2,637.3%

2,810.0%

Change＋172.7pt

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate is calculated without offsetting policies that are reinstated.

4(Reasons for changes)
 Increased, due mainly to favorable sales of a discountrider for family income insurance for nonsmokers andother people in excellent health, which trend has
continued since the second half of FY09.

 Decreased due to the lowering lapse and surrender
rates in most products, mainly for term life insurance
and variable insurance.

 Increased, owing mainly to favorable sales of cancer
hospitalization insurance and living benefit insurance.

 Increased due primarily to an increase in interest
income and dividends.

 Declined owing primarily to a change from theprevious year’s reversal of policy reserve forminimum guarantee for variable life insurance toa provision in the current period, despite increases
in income from insurance premiums and in interest
income and dividends.
 Rose owing mainly higher unrealized gains.
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Sony Life Operating Performance (1)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Number of new policy(Thousands of policies)

Annualized premiums from new policies

155(Trillions of yen)(Billions of yen)

+8.1%

144

142

15,0001.5

Of witch, third-sector

20

18.1
+13.1%

16.2
1.06
1.00

10,000
1.0

16.0

15

100

0.93
+14.3%

10

0.5
5,000
+5.0%

5

0

0
FY08.1Q

FY09.1Q

3.5

3.9

4.1

FY08.1Q

FY09.1Q

FY10.1Q

0

FY10.1Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

Sony Life Operating Performance (2)Policy Amount in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force

Annualized premiums from insurance in force

Number of policies in force

Of which, third sector(Millions of policies)(Trillions of yen)(Billions of yen)

+6.6%

50

5.09
5.01

4.78

600

+1.8%

5

+5.4%

552.8

582.4

573.3
+1.6%

500

40

32.7

33.8

33.4
+3.4%

4
400

+1.0%

30

3
300

20

2

10

0
09.6.30

10.3.31

200

1

100

0

0

10.6.30

Line item amounts are truncated below ¥100 billion; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

+5.2%

128.3

133.0

09.6.30

10.3.31+1.6%

Line item amounts are truncated below ¥100 million;
percentage figures are rounded

5

135.0

10.6.30

Sony Life Operating Performance (3)Lapse and Surrender Rate*

Solvency Margin Ratio（Individual Life Insurance + Individual Annuities）＜Annual・1Q＞* 解約･失効率は、復活契約を失効と相殺せずに算出している。
（％）

2,810.0

3,000

（％）

Lapse and surrender rate （1Q）

Lapse and surrender rate
（Annual）

10+172.7pt

2,500

8

6.79

7.21

2,000

2,637.3
2,264.3

6
1,500

4

1,000

2

1.59

1.67

FY08

FY09

1.58
(0.09ｐｔ)

500

0

0

09.6.30FY1010.3.3110.6.30*Figures for lapse and surrender rates are calculated
without offsetting policies that are reinstated.

Sony Life Operating Performance (4)Ordinary Profit

Income from Insurance Premiums(Billions of yen)(Billions of yen)

200

182.6
162.5

30

165.9
+10.1%

20.7

18.8

20
(9.2%)

100

12.3
10

0

0
FY08.1Q

FY09.1Q

FY08.1Q

FY10.1Q

FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

6

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)

20

20

16.5

(28.8%)

15

15

11.7
9.3

10

10

6.1
4.5

5

5

(42.2%)

2.6

0

0
FY08.1Q

FY09.1Q

FY10.1Q

FY08.1Q

FY09.1Q

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage figures are rounded.

Sony Life Operating Performance (6)Number of Lifeplanner Sales Employees

Number of Independent Agents（Number）（Number）

2,500

4,036
4,000

3,891

3,928

4,021
(15)

2,112

2,084

2,089

2,000

2,064
(25)

3,500
1,500

3,000
0

1,000
0

09.3.31

09.6.30

10.3.3110.6.30

09.3.317

09.6.30

10.3.3110.6.30

Sony Life Operating Performance (7)Breakdown of General Account Assets (Based on the real status)
10.3.31(Billions of yen)

10.6.30<Asset management review>

Amount％Amount％3,310.4

84.6%

3,466.3

86.8%

13.2

0.3%

－

－

72.5

1.9%

63.5

1.6%

75.2

1.9%

69.3

1.7%

CBs: No balance (as of June 30, 2010)

Policyholder loans

127.5

3.3%

128.9

3.2%

Japanese stocks: Maintained the ratio of stock holding
at the end of March, 2009.

Real estate

79.9

2.0%

79.7

2.0%

Japanese governmentand corporate bonds(excl. CBs)

Japanese government and corporate bonds:
Continuously accumulated ultralong-term bonds for 1Q
FY10.

<Lengthened
assets duration><L
CBs
Japanese stocks
Foreign securities

Cash and call loans

116.4

3.0%

87.5

2.2%

117.4

3.0%

98.3

2.5%

3,912.9

100.0 %

3,993.7

100.0 %

Other
Total

09.3.3113.6 years

10.3.3117.6 years

10.6.3018.0 years

Amounts for individual items included in monetary trusts(Japanese government and corporate bonds, CBs, Japanesestocks and other) have been broken down into their original
investment categories.
* The breakdowns shown at left are different from those shownin Chapter 2, “Status of Investment of Assets (General
Account Assets)” on page 3 of the “Summary Information on
Sony Life’s Financial Results for the Three Months Ended June30, 2010,” announced by Sony Life.

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

+8.9%

17.4

(Billions of yen)

19.0

FY09.1Q

Ordinary revenues

17.4

19.0

+1.5

+8.9%

17.3

18.8

+1.5

+9.0%

0.1

0.1

+0.0

+5.0%

16.5

18.5

+1.9

+12.0%

Underwriting expenses

12.6

14.3

+1.7

+13.8%

Investment expenses

0.0

－

(0.0)

(100.0%)Operating, general andadministrative expenses

3.9

4.1

+0.2

+6.3%

Ordinary profit

0.9

0.4

(0.4)

(47.9%)Net income

0.6

0.2

(0.3)

(53.1%)

Underwriting income
Investment income
Ordinary expenses

0.9
FY09.1Q(47.9%)

0.4
FY10.1Q

ChangeFY10.1Q(Billions of yen)Ordinary revenues increased, but ordinary profit
decreased, year on year.
Ordinary revenues amounted to ¥19.0 billion, up
8.9% year on year. This was because net premiums
written increased, owing to a growing number of
in-force policies primarily for automobile insurance.
Ordinary profit amounted to ¥0.4 billion, down
47.9% year on year, due mainly to an increase in
net losses paid for automobile insurance, which
offset the positive impact of increased ordinary
revenues.

(Billions of yen)

Change from 10.3.31

09.6.30

10.3.3110.6.30

Underwriting reserves

53.8

58.1

61.3

+3.1

+5.5%

Total net assets

14.4

15.4

15.7

+0.2

+1.9%

(0.0)

0.0

0.0

+0.0

+23.5%

90.1

98.3

101.3

+3.0

+3.1%

Net unrealized gains/losses
on other securities(net of taxes)
Total assets

Line item amounts are truncated below ¥100 million *excluding Net unrealized gains/losses on other securities (net of taxes); percentage change figures are rounded.

8

Overview of Performance:
Sony Assurance(Reasons for changes)(Billions of yen)

FY09.1Q

FY10.1Q

Direct premiums written

17.2

18.7

+8.6%

Net premiums written

17.3

18.8

+9.0%

Net losses paid

8.0

9.2

+15.6%

Underwriting profit

0.7

0.3

(58.1%)Net loss ratio

52.0%

55.2%

+3.2ptNet expense ratio

24.6%

23.9%

(0.7pt)Combined ratio

76.5%

79.1%

+2.6ptChange Increased, owing to an increase in thenumber of policies in force for automobile
insurance.
 Increased, owing to an increase in thenumber of policies in force for automobile
insurance as well as rising number of car
accidents.
 Decreased, due to increased net
premiums written which offset thenegative impact of an increase inunderwriting costs
 Increased steadily, refracting an increasein the number of policies in force for
automobile insurance.

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

09.6.30
Number of policies in force
Solvency margin ratio

10.3.3110.6.30

1.19 million

1.27 million

1.30 million

1,020.1%

1,018.5%

1,029.7%

Change from
10.3.31+0.03 million+2.4%+11.2pt

The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.
Line item amounts are truncated below ¥ 100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY09.1Q

FY09.1Q

ChangeFY10.1Q

Fire

71

31

(56.4%)

Marine－－－Personal accident*

1,708

1,767

+3.4%

Voluntary automobile

15,473

16,938

+9.5%

－

－

－

17,253

18,737+8.6%

Compulsory
automobile liability
Total

ChangeFY10.1Q(Millions of yen)

(Millions of yen)

Net losses paid

Fire

3

1

(45.3%)

Marine23+40.7%

Personal accident*

1,780

1,824

+2.5%

Voluntary automobile

15,415

16,871

+9.4%

99

158

+59.9%

17,301

18,860+9.0%

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is includes in Personal accident.
FY09.1Q

FY10.1Q

Change(Millions of yen)
Fire

0

0

+49.7%

Marine03+260.8%Personal accident*

348

378

+8.5%

Voluntary automobile

7,538

8,732

+15.8%

Compulsory
automobile liability

126

153

+21.5%

8,014

9,266

+15.6%

Total

Line item amounts are truncated below ¥ 1 million;
Percentage change figures are rounded.

9Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance(Millions of policies)

Number of policies in force

Other

Ordinary Profit(Billions of yen)

1.30

25

1.4

+9.5%

1.19

1.2

18.8

20

17.3

0.1

(Billions of yen)
20

0.1

+9.0%

15

1

1.8

1.7
15

0.8

0.9

10

0.6

10

(47.9%)

16.8
15.4

0.4

0.4

5

5
0.2
0

0
FY09.1Q

0
FY09.1Q

FY10.1Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

FY10.1Q

Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

Sony Assurance Operating Performance (2)Reference
Combined Ratio(Net Expense Ratio + Net Loss Ratio)

Net Expense Ratio + Earned/Incurred Loss Ratio
Earned/incurred loss ratio

Net expenses ratio
（％）
100

90.2

91.9

+3.4ptNet expenses ratio

Net loss ratio

（％）
100

90.3

86.9
81.7

80

+2.6pt

83.3

79.1

76.5

80
+4.1pt

66.4

60
63.5

65.8

60

62.3

40

20

+3.2pt

57.2
55.0

55.2

52.0

40

26.7

20

(0.7pt)

26.1

24.6

23.9

FY09.1Q

FY10.1Q

0

26.7

26.1

(0.7pt)

24.6

23.9

FY09.1Q

FY10.1Q

0
FY08

FY09

FY08

FY09

Earned/incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.
*Note that earthquake insurance and compulsory automobile liability

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to
net premiums written.

insurance are excluded from the above calculation.

10

Sony Assurance Operating Performance (3)Solvency Margin Ratio
（％）

1,200
+11.2pt

1,020.1

1,018.5

09.6.30

10.3.311,029.7

800

400

0
10.6.30

Note: The figure above is calculated based on the Insurance Business Law Enforcement Regulations and Ministry of Finance Announcement.
A portion of the figures as of June 30, 2009, and June 30, 2010, are calculated according to the simplified methods judged rational by Sony Assurance.

Highlights of Operating Performance:
Sony Bank (Non-Consolidated)
Ordinary revenues

7.6

+0.8%

0.4
FY09.1Q

Ordinary profit(Billions of yen)

7.7

0.7

+52.6%

FY09.1Q

ChangeFY10.1Q

Ordinary revenues

7.6

7.7

+0.0

0.8%

Gross operating profit

3.2

4.0

+0.7

+24.0%Net interest income

3.2

3.1

(0.0)

(2.5%)Net fees and commissions

0.03

0.06

+0.02

+69.4%Net other operating income(0.01)

0.8

+0.8

－

General andadministrative expenses

2.7

3.1

+0.4

+16.1%

Ordinary profit

0.4

0.7

+0.2

+52.6%Net income

0.2

0.3

+0.0

+32.4%Net operating profit

0.5

0.8

+0.2

+52.4%

FY10.1Q(Billions of yen)Ordinary revenues remained flat and ordinary profit increased
year on year.
Gross operating profit increased ¥0.7 billion year on year due to anincrease in net other operating income.
- Net interest income slightly decreased due mainly to increased
interest expenses on derivatives held for hedging purpose formortgage loans despite higher interest income on loans.
- Net other operating income increased ¥0.8 billion, mainly reflecting
improved investment performance.
Net operating profit increased ¥0.2 billion year on year despite anincrease in operating expense of ¥0.4 billion.
Customer assets increased ¥2.9 billion from March 31, 2010, of which
deposit balance increased ¥7.0 billion.

(Billions of yen)
Securities

Change from
10.3.31

09.6.30

10.3.3110.6.30

807.8

880.1

903.0

+22.9

+2.6%

Loans

510.8

586.6

600.9

+14.2

+2.4%

Deposits

1,330.9

1,510.0

1,517.1

+7.0

+0.5%

Customer assets

1,423.7

1,610.0

1,613.0

+2.9

+0.2%

Total net assets

53.2

58.9

58.2

(0.7)

(1.3%)

(3.1)

0.9

1.0

+0.1

+14.3%

1,438.6

1,612.1

1,637.3

+25.1

+1.6%

Net unrealized gains/losses
on other securities(net of taxes)
Total assets

Line item amounts are truncated below ¥100 million excluding net fees and commissions,and net other operating income; percentage change figures are rounded.

11

Overview of Performance:
Sony Bank (Non-Consolidated) (1)(Reasons for changes)(Billions of yen)

09.6.30

10.3.3110.6.30

Change from 10.3.31


Customer assets

1,423.7

1,610.0

1,613.0

+2.9

+0.2%

Deposits

1,330.9

1,510.0

1,517.1

+7.0

+0.5%

Yen

1,032.7

1,184.9

1,189.1

+4.1

+0.4%

Foreigncurrency

298.2

325.0

327.9

+2.9

+0.9%

Investment trusts

92.7

100.0

95.9

(4.0)

(4.1%)

510.8

586.6

600.9

+14.2

+2.4%

502.3

555.1

562.4

+7.3

+1.3%

8.5

31.5

1

38.4*

+6.9

+21.9%

736

796

809

+12

+1.6%

13.41%

12.09%

12.20%

Loans
Mortgage loans
OthersNumber of accounts(thousands)
Capital adequacy
ratio(*2)(domestic criteria)

Customer assets increased ¥2.9 billion
from March 31, 2010, of which total of
deposit increased ¥7.0 billion. Foreign
currency Deposit increased ¥2.9 billion
under the circumstance where sharp hikein the yen might have the negative impact
on the foreign exchange conversion.

 Investment trusts decreased reflecting adecline in reference price Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

+0.11pt*1 Loans in others include syndicated loans of ¥30.2 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P14.
Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

Overview of Performance:
Sony Bank (Non-Consolidated) (2)■<Reference> On an Internal Control Basis
FY09.1Q
Gross operating profit
Net interest income*1①ChangeFY10.1Q

3.2

4.0

+0.7

+24.0%

3.3

3.4

+0.1

+3.7%

0.4

+0.0

+9.0%

0.1

+0.6

－

Net fees andcommissions *2 ②

0.3

Net other operating
income *3(0.4)<Reference>
Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)(Billions of yen)

Net operating profit (core profit)
Gross operating profit (core profit)

5

Operating expenses and other expenses

3.9

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

3.7

3.9

+0.1

+4.2%

Operating expenses andother expenses ③

2.7

3.2

+0.5

+18.3%Net operating profit(core profit)= (A)－③

1.0

0.6

(0.3)

(33.9%)

4

3.7

+4.2%

3.2
3

●On an Internal Control Basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustment (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

2●Core profit
Profits and losses exclude net other operating income which includes those for bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

0

1

2.7

1.0

FY09.1Q+18.3%(33.9%)

0.6

FY10.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

12

Sony Bank Operating Performance (1)<Reference> Interest Spread (Internal Control Basis)
Interest spread

Yield on financing

Yield on investment

（％）

2.00

1.64

1.53

1.50

1.50

0.95

1.00

0.69

1.49

1.44

0.92

0.92

0.90

0.86

0.61

0.57

0.59

0.58

FY09.2Q

FY09.3Q

FY09.4Q

FY10.1Q

0.50

0.00
FY09.1Q

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency swap transactions in net other operating income.

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Number of accounts (thousands)

Mortgage loans

Investment trusts(Billions of yen)

796

Loans

+12

809

Others*Including syndicated loans of ¥30.2billion.

(Billions of yen)
800

2,000

736

1,500

1,423.7600.9

1,613.0

1,610.0
+2.9

586.6

600

95.9

+14.2

510.8

38.4*

327.9
400
1,000
Deposits total:¥1,517.1 billion

562.4

1,189.1
200

500

0

0

09.6.30

10.3.3110.6.30

09.6.30

10.3.3110.6.30

Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts.

13

Sony Bank Operating Performance (3)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings
AAA
AA
BBB
BB
(Billions of yen)
1,200

A
Other

（％）
20

1,000

903.0

880.1
807.8

15

12.20
+22.9

800

+0.11pt

13.41
12.09
10

600

400

5

200
0
09.6.30

009.6.30

10.3.3110.3.3110.6.30* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Law of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital
adequacy ratio as of and after December 31, 2008, newly adopted the special exception of
the standard mentioned above, in accordance with the FSA public ministerial announcement
No. 79 of 2008.

10.6.30

Amounts are truncated below ¥100 million.

14

I. Consolidated Operating Results for theThree Months Ended June 30, 2010

3. Consolidated Financial Forecast
for the Year Ending March 31, 2011

Consolidated Financial Forecast
for the Year Ending March 31, 2011
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09

Consolidated ordinary revenues

FY10.1H

FY10Change(Forecast)(Forecast)

FY10 forecast
vs. FY09 actual

Consolidated Ordinary Revenues

978.9

483.0

974.0

(0.5％)

Life insurance business

882.0

432.1

871.3

(1.2％)

Non-life insurance business

68.1

36.5

72.7

+ 6.6 ％

Banking business

30.5

14.8

30.6

+ 0.3％

1,000(Billions of yen)
1,200

84.3

41.0

74.0

(12.3％)

800

Life insurance business

79.7

39.6

69.6

(12.8％)

600

Non-life insurance business

2.5

0.7

2.2

(14.2％)

Banking business

1.9

1.2

2.8

+ 45.2%

48.1

23.0

40.0

(16.9％)

Consolidated ordinary profit

Consolidated net income

Banking business
Non-life insurance businessLife insurance business

978.9

974.0

(Forecast)

400
200
0

※SFH’s consolidated financial forecasts for the six months ending September 30, 2010 andfor the fiscal year ending March 31, 2011, are unchanged from those announced on May 13, 2010.

FY09■Life insurance business

FY10

Consolidated Ordinary Profit

Ordinary revenues for FY10 are expected to slightly decrease, as we expect a decrease in investment income(Billions of yen)
compared with that of FY09 which reflected a recovery in the financial market conditions, though we expect anincrease in income from insurance premiums in line with the steady growth of policy amount in force. We expect
100
ordinary profit to decrease, due mainly to a decrease in gains on sale of securities held and an increase in insurance
90
claims and other payments.

Banking business
Non-life insurance businessLife insurance business

84.3
74.0

80

■Non-life insurance business

70

Ordinary revenues for FY10 are expected to rise, as we expect steady business expansion, mainly in its mainstay
automobile insurance. Despite an expected increase in ordinary revenues, ordinary profit is expected to decrease
due mainly to an expected rise in the loss ratio, as well as an expense ratio in line with the planned reinforcement of
the corporate system and infrastructure based on the expected expansion of its business operations.

60
50(Forecast)

40
30■Banking Business

20

Ordinary revenues for FY10 are expected to slightly increase, as interest income is expected to rise due toexpanding business operations, although an influence of the worldwide reductions in interest rates still remains.
Ordinary profit is expected to grow, as gross operating profit, especially net interest income, is expected to grow.

15

10
0
FY09

FY10

I. Consolidated Operating Results for theThree Months Ended June 30, 2010

4. Appendix

Recent Topics (1)AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products:
1) Winning Road (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)2) My History (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)3) Victory Run (Variable Individual Annuity - Guaranteed Minimum Accumulation Benefit (GMAB) type)
Sales Channels: Lifeplanner sales employees and affiliated Banks(The Tokyo star bank, SMBC, Minato bank, Fukushima bank, Chiba Kogyo Bank) *As of Aug. 12, 2010
Sales results: Number of new policies: 171 policies, New policy amount: ¥1,555 million,(FY10.1Q) Number of policies in force: 636 policies, Policy amount in force: ¥8,278 million,

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 45% of the amount of
new mortgage loans for FY10.1Q.
* Sony Life started handling banking agency business in Jan. 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY10.1Q.
* Sony Life started handling automobile insurance in May 2001.

16

Recent Topics (2)<Recent Topics for and after FY10.1Q>
2010-4-1

AEGON Sony Life Insurance ’s variable individual annuity product commenced to be offered at Minato Bank

2010-4-12Sony Assurance launched automobile insurance sales via Bank of Yokohama

2010-4-19

AEGON Sony Life Insurance 's variable individual annuity product commenced to be offered at Fukushima Bank

2010-5-1

Sony Life newly opened a branch in Yamagata prefecture to expand its service network

Sony Bank entered tie-up with Kintetsu Real Estate in mortgage loans

through community-based approachSony Assurance launched automobile insurance sales via Tama Shinkin Bank
Sony Life commenced operations at LIPLA Co., Ltd., a wholly owned subsidiary of Sony Life,and opened the first one-stop shop “LIPLA”.
2010-6-24

Sony Bank opened the first over-the-counter branch, called "Housing Loan Plaza.

2010-7-12

AEGON Sony Life Insurance 's variable Individual annuity product to be offered at Chiba Kogyo Bank

2010-7-26

Sony Bank launched foreign currency delivery service

Sony Life: Fair Value Information on Securities
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)
09.6.30
Carrying
amount09.9.30Net
unrealized
gains/losses

Fair
value

Carrying
amount09.12.31
Netunrealized
gains/losses

Fair
value

Carrying
amount10.3.31Net
unrealized
gains/losses

Fair
value

Carrying
amountFair
value

10.6.30Net
unrealized
gains/losses

Carrying
amountNet
unrealized
gains/losses

Fair
value

Held-to-maturity securities

1,641.3

1,643.7

2.4

1,777.8

1,782.4

4.6

2,007.4

1,999.5(7.9)

2,275.6

2,255.1(20.4)

2,477.9

2,628.6

Available-for-sale securities

1,472.2

1,516.8

44.5

1,418.4

1,470.6

52.1

1,305.9

1,358.2

52.3

1,126.5

1,166.9

40.4

1,039.8

1,097.8

58.0

Domestic bonds

1,352.9

1,387.2

34.2

1,325.0

1,369.9

44.8

1,216.8

1,262.0

45.2

1,061.5

1,090.0

28.4

973.8

1,030.3

56.5

150.7

(CBs）

210.4

202.3

(8.0)

159.6

156.8

(2.7)

77.5

78.4

0.9

13.6

13.2

(0.3)

-

-

-

Domestic stocks

56.9

68.4

11.5

40.7

48.4

7.7

51.6

58.1

6.5

51.7

62.1

10.4

51.9

53.2

1.2

Foreign securities

54.9

52.8

(2.0)

47.4

46.0

(1.4)

32.3

31.6

(0.7)

8.0

8.0

(0.0)

2.0

2.0

0.0

Other securities

7.4

8.3

0.9

5.1

6.1

0.9

5.1

6.3

1.2

5.1

6.7

1.5

11.9

12.1

0.2

3,113.5

3,160.5

47.0

3,196.2

3,253.0

56.8

3,313.4

3,357.8

44.3

3,402.1

3,422.1

19.9

3,517.8

3,726.5

208.7

Total

Valuation gains/losses of trading-purpose securities
09.6.30

09.9.30

09.12.31(Billions of yen)

10.3.31

Balance sheet
amountNet valuation
gains/losses
recorded inincomeBalance sheet
amountNet valuation
gains/losses
recorded inincomeBalance sheet
amountNet valuation
gains/losses
recorded inincomeBalance sheet
amount

4.7

5.3

0.7

5.6

0.3

5.6

-

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.

1710.6.30

Net valuation
Net valuation
gains/losses Balance sheet gains/losses
recorded inamountrecorded inincomeincome5.7--

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Adjusted Net Assets and Solvency Margin(Billions of yen)
①Net Assets（B/S）
10.3.31②Adjusted
Net Assets

10.6.30

10.3.31③Solvency
Margin10.6.30

10.3.3110.6.30

Total shareholders’ equity

177.3

180.5

177.3

180.5

170.3

Net unrealized gains on other securities, net of taxes
Net unrealized gains/ losses on available-for-salesecurities

15.4

26.2

15.4

26.2

－

179.9
－

－

－

－

－

33.0

48.4

Land revaluation, net of taxes

(1.4)

(1.4)

(1.4)

(1.4)

－

－

Reserve for price fluctuations

－

－

9.6

11.2

9.6

11.2

Contingency reserve

－

－

48.4

49.2

48.4

49.2

Reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate
－

－

2.6

2.6

1.6

1.6

Excess of the amount equivalent topolicy reserve under Zillmer method

－

－

316.5

319.3

316.5

319.3

Unallotted portion of reserve for policyholders' dividends

－

－

2.3

2.7

2.3

2.7

Future profits

－

－

－

－

1.0

1.0

Deferred tax assets

－

－

－

－

47.2

52.9

Net unrealized gains/ losses on held-to-maturity bonds－－(20.4)

150.7

－

－

Deferred tax liabilities for available-for-sale securities

－

－

12.8

19.2

－

－

191.3

205.2

563.4

760.5

630.2

666.6

Total

※Adjusted net assets excluding net unrealized gains/losses on held-to-maturity securities and on policy reserve matching bonds, are¥583.8 billion as of March 31, 2010, and ¥609.8 billion as of June 30, 2010.

Notes③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax (Before
revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

Sony Life’s Changes in Solvency Margin Ratio(Billions of yen)
Category

09.6.30

09.9.30

09.12.31

10.3.3110.6.30

572.4

600.7

625.6

630.2

666.6

Net assets (less certain items)

143.0

152.9

163.3

170.3

179.9

Reserve for price fluctuations

5.0

6.3

7.9

9.6

11.2

Contingency reserve

46.2

46.9

47.8

48.4

49.2

Reserve for possible loan losses

0.0

0.0

0.0

0.0

0.0

34.7

41.6

43.0

33.0

48.4

4.8

4.8

4.8

1.6

1.6

（A）

Total solvency margin

Net unrealized gains on other securities (before taxes)
multiplied by 90% if gains or 100% if losses
Net unrealized gains on real estate multiplied by 85% ifgains or 100% if losses
Excess of the amount equivalent to policy reserve underZillmer method

305.5

309.4

312.8

316.5

319.3

Unallotted portion of reserve for policyholders' dividends

0.3

0.3

1.7

2.3

2.7

Future profits

－

－

－

1.0

1.0

Subordinated debt

32.5

38.1

44.0

47.2

52.9

Deferred tax assets

－

－

－

－

－

Deductible items

－

－

－

－

－

50.5

49.3

48.6

47.7

47.4
19.4

（Ｂ）

Total risk

18.7

18.8

19.0

19.1

Third-sector insurance risk

R8

7.0

7.1

7.1

7.0

7.1

Assumed interest rate risk

R2

11.2

11.2

11.3

11.3

11.4

Asset management risk

R3

23.1

21.4

20.2

18.9

17.9

Business management risk

R4

1.3

1.3

1.3

1.2

1.2

Minimum guarantee risk

R7

7.4

7.6

7.8

8.0

8.3

2,264.3%

2,433.8%

2,570.9%

2,637.3%

2,810.0%

Insurance risk

R1

Solvency margin ratio （A)/(1/2×（B))×100

Amounts are truncated below ¥100 million.

18

II. Other Information
1. Changes in scope of consolidation during the period under review (changes in specified subsidiaries
accompanying changes in scope of consolidation)
Not applicable.
2. Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements(Simplified accounting methods)
Collectability of deferred tax assets
At certain consolidated subsidiaries, the collectability of deferred tax assets is determined based on earnings
forecasts and tax planning as of March 31, 2010, also taking into account temporary differences during the fiscal
period.
(Accounting methods used specifically for quarterly consolidated financial statements)
Not applicable.
3. Changes in accounting policies, procedures and presentation(Asset retirement obligations)
As ASBJ Statement No. 18 “Accounting Standard for Asset Retirement Obligations” (March 31, 2008) and
ASBJ Guidance No. 21 “Guidance on Accounting Standard for Asset Retirement Obligations” (March 31, 2008)
went into effect for fiscal years beginning on or after April 1, 2010, SFH applied these guidelines from the threemonths ended June 30, 2010.
The adoption of these guidelines resulted in a decrease of ¥8 million in ordinary profit, a decrease of ¥299
million in net income before taxes, and an increase of ¥659 million in asset retirement obligations.

19III. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of June 30, 2010

As of March 31, 2010

AssetsCash and due from banks
Call loans and bills bought
Commercial paper and other debt purchased
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from agencies
Due from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Reserve for possible loan losses¥ 123,925
96,155
1,841
298,828
4,619,486
730,368
81,85020,562
1,378
19,1840309
5,269
78,21329,816(1,153)¥ 103,649
146,879
3,292
300,7434,488,458
714,486
81,931
20,687
1,503
19,184—205
5,100
101,684
34,987(1,019)Total Assets¥6,085,475¥6,001,088

20

(Millions of yen)
As of June 30, 2010

As of March 31, 2010

¥4,159,227
40,357
4,113,675
5,194
1,176
559
1,515,691
10,0002,000
2183,533
1,204
16,641371
11,27930706¥4,088,186
39,151
4,043,958
5,076
1,445
853
1,509,295
10,0002,000
2090,6992,496
15,915
360
9,665
2
0
706

5,802,417

5,731,648

Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Total valuation and translation adjustments

19,900195,277
43,196258,373
28,418(2,203)(1,475)(54)
24,683

19,900195,277
39,350254,527
17,511(960)(1,475)(163)
14,912

Total Net Assets

283,057

269,439¥6,085,475¥6,001,088

Liabilities
Policy reserve and others
Reserve for outstanding claims
Policy reserve
Reserve for policyholders’ dividends
Due to agencies
Due to reinsurers
Deposits
Call money and bills soldBorrowed money
Foreign exchanges
Other liabilities
Reserve for employees’ bonuses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Reserve for price fluctuations
Reserve for financial products transaction liabilities
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets

Total Liabilities and Net Assets21

2. Consolidated Statements of Income(Millions of yen)
For the three months ended
June 30, 2009
Ordinary Revenues

For the three months ended
June 30, 2010

¥248,117
222,946¥240,546

Income from insurance premiums

165,840

182,562

Investment income(Interest income and dividends)

56,57530,27915,76320,505(Income from monetary trusts, net)

4,188

2,343

(Gains on sale of securities)

6,622

7,430

(Gains on separate accounts, net)

28,867

—

530

906

Ordinary Revenues from the Life Insurance Business

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)

213,748

17,491

19,051

17,30818,86817,301

18,860

7

7

170

179

170

186

(Gains on sale of securities)

7—(Transfer to interest and dividends on deposits of premiums)

(7)

(7)

Other ordinary income

11

3

7,679

7,746

Investment income(Interest income and dividends)

Ordinary Revenues from the Banking Business
Interest income

5,894

5,893

(Interest income on loans)

2,869

3,039

(Interest income and dividends on securities)

2,842

2,796

Fees and commissions

524

546

Other operating income

1,245

1,297

1,190

1,034

14

7

(Gains on foreign exchange transactions, net)
Other ordinary income(Continued)

22

(Millions of yen)
For the three months ended
June 30, 2009

For the three months ended
June 30, 2010

Ordinary Expenses¥226,181¥220,987

Ordinary Expenses from the Life Insurance Business

202,417

195,516

66,86967,801
17,931
1,766
8,258
38,664681

Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Other payments)

15,194
1,554
7,950
41,218440

Provision for policy reserve and others

103,231

Provision for reserve for outstanding claims
Provision for policy reserve
Interest portion of reserve for policyholders’ dividends
Investment expenses

754
102,476
1
6,160

23,097

67,292772
66,514
4
32,94515479
30,083
23,8393,057
16,472

3,637
18,469Underwriting expenses

12,54814,302(Net losses paid)(Loss adjustment expenses)(Net commission and brokerage fees)(Provision for reserve for outstanding claims)(Provision for underwriting reserve)
Investment expenses

8,014
973
246
263
3,050
12

9,266
1,143
266
433
3,192
—

12

—

3,908

4,156

2

10

7,291

7,001

Interest expenses

2,624(Interest expenses on deposits)
Fees and commissions

2,286
292

2,720
2,194
298

Other operating expenses

1,262

466

General and administrative expenses

3,019

3,338

92

175

21,935

19,558(Interest expenses)(Losses on sale of securities)(Losses on separate accounts, net)
Operating expenses

8
3,626
—

Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Expenses from the Banking Business

Other ordinary expenses
Ordinary Profit(Continued)

23

(Millions of yen)
For the three months ended
June 30, 20091

Extraordinary Gains

For the three months ended
June 30, 2010

Gains on disposal of fixed assets—

00Reversal of reserve for price fluctuations

1

—

1,462
78

1,915
10

0

0

—

290

1,383

1,613

279

299

Income Before Income Taxes

20,194

17,344

Income Taxes

7,690

6,972

- Current

356

7,758

- Deferred

7,333

(785)

Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Provision for reserve for price fluctuations
Provision for Reserve for Policyholders’ dividends

Income Before Minority Interests

10,371
12,504Net Income

24

10,3713. Segment Information
As ASBJ Statement No.17 “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(March 27, 2009) and ASBJ Guidance No.20 “Guidance on Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (March 21, 2008) went into effect for fiscal years beginning on or after April 1, 2010,
SFH applied these guidelines starting from the three months ended June 30, 2010.
(1) Outline of reportable segments
SFH Group’s reportable segments are components of the Group whose operating results are regularly reviewed by the Boardof Directors to make decisions about resources to be allocated to the segments and assess their performance, for which
discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make own business plans and engage in business activities from which it
may earn revenues and incur expenses, under the each legal regulations of the Insurance law, the Banking law etc.
The SFH Group consists of three reportable segments, the life insurance business, the non-life insurance business, andthe banking business.
The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
The non-life insurance business consists of Sony Assurance Inc.

The banking business consists of Sony Bank Inc. and Sony Bank Securities Inc.
(2) Segment Information by reportable segment(i) For the three months ended June 30, 2009
Millions of yen

Ordinary revenues
External customers
Intersegment
Total
Ordinary profit

Life insurance
business

Non-life
insurancebusiness¥ 222,946
327
223,273¥ 20,755¥ 17,491
017,491¥ 904

Bankingbusiness¥ 7,679
14
7,693
¥ 255

Total

Elimination

Consolidated

¥ —
(341)
(341)
¥ 20

¥ 248,117—
248,117¥ 21,935¥ 248,117
341
248,459¥ 21,914(ii) For the three months ended June 30, 2010

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥ 213,748
422
214,171¥ 18,549

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥ 19,051
0
19,052¥ 470¥ 7,746
6
7,752
¥ 510

25

Total

¥ 240,546
429
240,976¥ 19,530

Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Ordinary profit in quarterly income statement

Millions of yen¥ 19,530325¥ 19,558(3) Information about impairment loss on tangible fixed assets and goodwill by each reportable segment
None

4. Per Share Information
Net income per share is based on the weighted-average number of shares of common stock outstanding during the period.
For the three months ended June 30, 2009 and 2010, net income per share was ¥5,749.09 and ¥4,768.61. There were no
potentially dilutive securities. Net assets per share, based on the number of shares of common stock outstanding as of March
31 and June 30, 2010, were ¥123,880.11 and ¥130,141.52.
The basis for this calculation for the three months ended June 30, 2009 and 2010 is net income of ¥12,504 millionand ¥10,371 million, the entire amounts of which are applicable to common stock. The weighted-average number of shares
outstanding for the three months ended June 30, 2009 and 2010, was 2,175 thousand.

26

SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally
accepted in Japan. As such, these figures differ in significant respects from financial information reported
by SFH’s parent company, Sony Corporation, which prepares its financial statements in accordance withaccounting principles and practices generally accepted in the United States.
*SFH’s scope of consolidation for the three months ended June 30, 2010, includes Sony Financial Holdings Inc., Sony Life Insurance Co.
Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, and Sony Bank Securities Inc. It also includes
AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method. This
scope of consolidation for the three months ended June 30, 2009 included AEGON Sony Life Planning Co., Ltd., (currently: AEGON Sony
Life Insurance Co., Ltd.) as an affiliated company accounted for under the equity method, but not SA Reinsurance Ltd.

On July 29, 2010, Sony Corporation will announce its consolidated financial results for the first quarter
ended June 30, 2010. SFH Group companies constitute the majority of Sony Group’s Financial Services
segment. However, the scope of Sony Group’s Financial Services segment differs from the scope of
SFH’s consolidated results. For the scope of Sony Group’s Financial Services segment, please refer to theJuly 29, 2010, news release by Sony Corporation.
This Consolidated Financial Summary contains statements concerning the current plans,
expectations, strategies and beliefs of the Sony Financial Holdings Group (“SFH Group”). Anystatements contained herein that pertain to future operating performance and that are not historicfacts are forward-looking statements. Forward-looking statements may include—but are not limited
to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,”“predict,” “possibility” that describe future operating activities, financial performance, events orconditions. Forward-looking statements, whether spoken or written, are based on judgments made by
the management of SFH Group based on information that is currently available to it. As such,forward-looking statements are subject to various risks and uncertainties, and actual results may vary
substantially from those expressed or implied in forward-looking statements. Consequently,
investors are cautioned not to place undue reliance on forward-looking statements. SFH Group
disclaims any obligation to revise forward-looking statements in light of new information, future
events or other findings.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp

Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

27