Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30, 2011

Sony Financial Holdings Inc.
November 14, 20111

Content■Consolidated Operating Results for the Six Months Ended September 30, 2011

P.3

■Consolidated Financial Forecast for the Year Ending March 31, 2012

P.27

■ Appendix

P.29

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performanceand that are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited
to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and “possibility” that describe future
operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, arebased on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary
substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned
not to place undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.

2

Content2

Consolidated Operating Results for
the Six Months Ended September 30, 20113

3

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2011 (1)FY10.1H

FY11.1H

444.5

Ordinary profit
Ordinary revenues(Billions of yen)

Ordinary revenues

496.2

Life
insurancebusiness

Ordinary revenues

Non-life
insurancebusiness

Ordinary profit

509.9

+2.8%

Ordinary profit
Ordinary revenues

Bankingbusiness

Ordinary profit

Intersegment
adjustments*

Ordinary revenues

Change

454.9

+10.4

+2.4%

49.5

28.1

(21.4)(43.3%)

37.1

39.9

+2.8

+7.6%

0.6

0.7

+0.0

+9.3%

15.4

15.9

+0.5

+3.3%

1.2

1.9

+0.6

+56.7%

(0.9)

(0.9)

(0.0)

(0.7%)

0.0

0.0

(0.0)

496.2

509.9

+13.7

+2.8%

Ordinary profit

51.5

30.8

(20.7)(40.2%)Net income

29.4

16.3

(13.0)(44.4%)

Ordinary profit(40.2%)
Ordinary revenues

30.8

51.5

FY10.1H

Consolidated

FY11.1H(Billions of yen)(Billions of yen)

10.9.30

11.3.3111.9.30

Change from 11.3.31

Total
assets6,295.4

6,597.1

6,816.8+219.7

+3.3%

299.8

294.8

322.5

+27.6

+9.4%

Consolidated
Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.1H: ¥36.9 billion, FY11.1H: ¥35.1 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

During the six months ended September 30, 2011, consolidated
ordinary revenues grew 2.8% compared with the same period of
the previous fiscal year, to ¥509.9 billion, owing to increases inordinary revenues from the all businesses: life insurance, non-life
insurance and banking.
Consolidated ordinary profit decreased 40.2% year on year, to¥30.8 billion. By business segment, ordinary profit from the life
insurance business decreased, whereas ordinary profit from thenon-life insurance and the banking businesses increased year on
year.

Net income was down 44.4% year on year, to ¥16.3 billion.

4

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2011 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income from insurance

premiums associated with steady growth in the policy amount in force. Ordinary profit decreased, due
to lower gains on sale of securities, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk, whereas insurance claims and other payments relating to the Great
East Japan Earthquake were lower than our estimates as of the end of the previous fiscal year.
 Non-life Insurance: Ordinary revenues increased year on year, due to higher net premiums written, as

the number of insurance policies in force grew, primarily for automobile insurance. Ordinary profit
expanded, due mainly to a rise in ordinary revenues and a reversal of catastrophe reserve, which
offset the negative impact of a rise in the loss ratio, driven by higher insurance claim payments forautomobile insurance.
 Banking: Ordinary revenues increased year on year, owing to the acquisition of shares in SmartLink

Network, Inc. by Sony Bank; ordinary revenues of the newly acquired company are included in thescope of consolidation. Ordinary profit rose, due to a rise in gross operating profit, reflecting adecrease in interest expenses on yen deposits and higher interest income on loans, led by the growing
balance of mortgage loans.
 Consolidated ordinary revenues increased 2.8% year on year, to ¥509.9 billion, however, consolidated

ordinary profit decreased 40.2%, to ¥30.8 billion. Net income decreased 44.4%, to ¥16.3 billion.
 SFH Group has no GIIPS* sovereign bonds.
*As of September 30, 2011
*GIIPS stands for Greece, Ireland, Italy, Portugal and Spain.
*Exposure of Sony Life is for general account assets.

5

Here is highlights of consolidated operating performance.
SFH Group has no GIIPS* sovereign bonds as of September 30, 2011.
（GIIPS stands for Greece, Ireland, Italy, Portugal and Spain.）5

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

FY10.1H

FY11.1H

444.3

454.8

+10.4

Income from insurance premiums

371.0

395.7

+24.6

+6.7%

Investment income

71.1

52.0

(19.1)(26.9%)

Interest income and dividends

42.3

47.4

+5.1

+12.1%

Income from monetary trusts, net

4.3

2.6

(1.7)

(39.1%)(92.2%)(Billions of yen)

Ordinary profit
Ordinary revenues

444.3

+2.4%

454.8

Gains on sale of securities(42.9%)

50.0

24.4

1.9

(22.5)

426.2

+31.9

+8.1%

Insurance claims and other payments

132.0

137.2

+5.2

+4.0%

Provision for policy reserves and others

179.3

200.8

+21.5

+12.0%

Investment expenses

27.1

29.3

+2.2

+8.2%

0.7

1.5

+0.8

+117.2%Losses on sale of securities

FY10.1H

FY11.1H

Losses on separate accounts, net

21.4

21.8

+0.4

+2.0%

49.0

51.5

+2.5

+5.1%

Ordinary profit

50.0

28.5

(21.4)(42.9%)Net income

28.9

15.6

(13.3)(46.0%)

Operating expenses(Billions of yen)Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased due to a steadyincrease in the policy amount in force.
Investment income decreased due to lower gains on sale ofsecurities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, although interest
income and dividends increased in the general account assets.
Ordinary profit decreased due to lower gains on sale of securities,
whereas insurance claims and other payments relating to theGreat East Japan Earthquake were lower than our estimatesas of the end of the previous fiscal year.

+2.4%

394.3

Ordinary expenses

28.5

Change10.9.30

11.3.3111.9.30

Change from 11.3.31

Securities

3,824.7

4,017.5

4,237.7+220.1

Policy reserves

4,163.5

4,371.4

4,572.3+200.8+4.6%

Total net assets

222.4

215.3

242.4

+27.0

+12.5%+291.8%(Billions of yen)

Net unrealized gains on other securities
Total assets
Separate account assets

+5.5%

24.6

7.0

27.4

+20.4

4,487.8

4,723.3

4,922.5+199.2

+4.2%

367.2

398.1

392.6

(5.5)

(1.4%)

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

6

Highlights of Sony Life’s operating performance (non-consolidated basis)are shown here.
Sony Life’s ordinary revenues increased 2.4% year on year, to ¥454.8
billion. Income from insurance premiums increased owing to a steadyincrease in the policy amount in force.
Income from insurance premiums grew 6.7% from the same period of theprevious fiscal year, to ¥395.7 billion.
Investment income decreased 26.9% year on year, to ¥52.0 billion, mainly
due to lower gains on sale of securities, which offset the positive impact ofhigher interest income and dividends in the general account assets.
Investment expenses increased 8.2% year on year to ¥29.3 billion due
mainly to an increase in losses on sale of securities.
Ordinary profit decreased 42.9% year on year to ¥28.5 billion, owing tolower gains on sale of securities, whereas insurance claims and otherpayments relating to the Great East Japan Earthquake were lower than ourestimates as of the end of the previous fiscal year.
Consequently, net income decreased 46.0% from a year earlier, at ¥15.6
billion.

6

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

FY10.1H

FY11.1H

2,068.4

2,051.7(0.8%)

Lapse and surrender amount

1,039.2

1,022.4(1.6%)(0.16pt)

Lapse and surrender rate

3.11%

2.95%

Policy amount in force

34,118.5

35,371.1+3.7%

Annualized premiums from new policies

34.9

33.2

(4.8%)Of which, third-sector products

7.9

8.1

+2.0%

589.6

618.0

+4.8%

136.6

144.7

Annualized premiums from insurance in force
Of which, third-sector products(Billions of yen)

FY10.1H

FY11.1H

 Decreased slightly, due mainly to lower sales offamily income insurance, which is life insurancewith disability benefit, despite favorable sales ofterm-life insurance, living benefit insurance andnursing-care insurance.

 Decreased due to the lowering lapse andsurrender rates mainly in family income insurance,
which is life insurance with disability benefit,
though those in term life insurance increased.
 Decreased, due mainly to lower sales of cancer
hospitalization insurance and educational
endowment insurance.

+5.9%
ChangeGains from investment, net (General account)

65.4

44.5

(32.0%)

Core profit

26.8

31.6

+18.0%

Negative spread

4.1

1.9

Solvency Margin Ratio(Reasons for changes)

ChangeNew policy amount Decreased due to lower gains on sale of securities
despite an increase in interest income anddividends.

(53.7%)

10.9.30

11.3.3111.9.30

Changefrom
11.3.312,992.8%

2,900.1%

3,148.0%+247.9pt

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 shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

 Increased reflecting lower insurance payments for
the Great East Japan Earthquake of March 2011
than formerly expected, and a decline in negative
spread.

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

7

Here is an overview of Sony Life’s performance.

7

(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities decreased 0.8% year on year, to ¥2,051.7 trillion, due mainly to
lower sales of family income insurance, which is life insurance withdisability benefit. However, sales of term life insurance, living benefit
insurance and nursing-care insurance increased.
The number of new policies decreased 4.0% year on year, to 283
thousand policies
policies.
(Right-hand graph)
Annualized premiums from new policies decreased 4.8%, to ¥33.2 billion,
due mainly to lower sales of cancer hospitalization insurance andeducational endowment insurance. Of which, third-sector insurance
products increased 2
2.0%
0% year on year
year, to ¥8.1
¥8 1 billion reflecting favorable
sales of nursing-care and living benefit insurance.

8

Sony Life Operating Performance (2)Number and Amount of Policies in Force

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

Policy amount in force

Number of policies in force

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)
+6.3%
50

5.17

5.49

5.34

(Billions of yen)
700

+4.8%

+2.9%

5
600

40

+3.7%

34.1

35.3

34.7

4

618.0

604.7

589.6

+2.2%

500

+1.8%
30
3

400

300

20
2

200

+5.9%
10

1
100

0

0

10.9.30

11.3.3111.9.30

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

136.6

140.7

10.9.30

11.3.31

+2.9%

144.7

0

11.9.30

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

9(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities grew steadily, to ¥35.3 trillion as of September 30,
2011, up 3.7% from September 30, 2010. The number of policies in force
increased 6.3% from September 30, 2010, to 5.49 million policies.
(Right-hand graph)
Annualized premiums from total policies as of September 30, 2011, wereup 4.8% from September 30, 2010 totaling ¥618.0 billion. Of this amount,the figure for third-sector products was up 5.9% from September 30, 2010,
to ¥144.7 billion.

9

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

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)（％）

Lapse and surrender rate
（1H）

Lapse and surrender rate
（Annual）

（％）

3,500

3,148.010

2,992.83,000

82,900.1

7.21
6.41

6

2,500

+247.9pt<Reference>
New solvency margin ratio effective
as of the end of FY11

March 31, 2011 : 1,720.0%
September 30, 2011 : 1,940.6%

4(0.16pt)

2,000

3.27

3.11

2

Variation factor from the previous standard ：◆Change of includable amount for margin calculation◆Stricter risk measurement

2.95
1,500
0

0
FY09

FY10

FY11

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

10.9.30

11.3.3111.9.30

Note:
Legislation concerning the calculation of the solvency margin ratio has been revised fromthe standpoint of raising its credibility, and these new standards are to become effective asof the end of fiscal 2011 (March 31, 2012). The above-stated figures are calculated on theassumption that these changes are applied at March 31and September 30, 2011.
* New solvency margin ratio for Sony Life is also on P 34.

Percentage change figures are rounded

10(Left-hand graph)
The lapse and surrender rate for the six months ended September 30,
2011 decreased 0.16 percentage point year on year, to 2.95%, due to thelowering lapse and surrender rates primarily for family income insurance,
which is life insurance with disability benefit, though those for term life
insurance increased.
(Right-hand graph)
As of September 30, 2011 , Sony Life’s solvency margin ratio was
3,148.0%, up 247.9 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reasons forthe decrease from the current standard are a change of includable
amount for margin calculation and stricter risk measurement.

10Sony Life Operating Performance (4)Income from Insurance Premiums(Billions of yen)(Billions of yen)

+6.7%

400

Ordinary Profit

395.7
100

371.0
339.3

80
300

60

50.0

200

(42.9%)

40

36.4
28.5

100

20

0

0
FY09.1H

FY10.1H

FY11.1H

FY09.1H

FY10.1H

FY11.1H

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

1111

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)40

20

+18.0%

30

28.5

31.6
15

26.8

20

10

10

5

8.8

4.1
(53.7%)

01.9

0FY09.1H

FY10.1H

FY11.1H

FY09.1H

FY10.1H

FY11.1H

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

12(Left-hand graph)Core profit increased 18.0% to ¥31.6 billion year on year, reflecting lower
insurance payments for the Great East Japan Earthquake ofMarch 2011 than formerly expected, and a decease in negative spread.
(Right-hand graph)
In line with the increase in interest income and dividends, the negative
spread declined 53.7% year on year, to ¥1.9 billion.

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

5,000

2,500

4,036

4,019

4,017

2,089

3,961

4,000

2,072

2,064

2,035

2,000

(56)

(29)

3,000

1,500

2,000

1,000

1,000

500

00

0
10.3.3110.9.30

11.3.3111.9.30

10.3.3110.9.30

11.3.3111.9.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

(Left-hand graph)
The number of Lifeplanner sales employees as of September 30, 2011,
was 3,961, down 56 from March 31, 2011. This decrease was primarily
the result of a lower number of new recruits due to the revised
recruitment standards, and a higher number of resignations.
(Right-hand graph)
The number of independent agents decreased 29 from March 31, 2011,
to 2,035.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets
11.3.31<Asset management review>

11.9.30(Billions of yen)Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

Amount%Amount%3,499.980.9%

3,734.7

82.4%

Japanese stocks

64.0

1.5%

48.1

1.1%

10.3.3117.6 years

Foreign securities

44.2

1.0%

59.4

1.3%

11.3.3118.5 years

11.9.30

18.8 years

Japanese governmentand corporate bonds<Lengthened
asset duration><L

Foreign stocks

30.0

0.7%

29.7

0.7%

Monetary trusts

276.4

6.4%

286.7

6.3%

Policy loans

134.4

3.1%

137.0

3.0%

Real estate

75.1

1.7%

74.1

1.6%

■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds

Cash and call loans

80.0

1.9%

60.9

1.3%

■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:

Others

120.9

2.8%

98.9

2.2%

4,325.2

100.0%

4,529.9

100.0%

Total

As of September 30, 2011: 88.8%, (As of March 31, 2011: 87.3%)

14

Here is a breakdown of Sony Life’s general account assets as of
September 30, 2011, compared with March 31, 2011.
As Sony Life continued its investment in ultralong-term bonds, mainly
Japanese government and corporate bonds, their ratio rose to 88.8% asof September 30, 2011.
As a result of these efforts, Sony Life’s asset duration become 18.8 years
as of September 30, 2011.
Going forward, Sony Life will mitigate interest rate risk by investing most
new money acquired in ultralong-term bonds.

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(Billions of yen)

+7.6%

FY10.1H

37.1

37.1

39.9

+2.8

36.7

39.4

+2.7

+7.5%

Investment income

0.3

0.4

+0.0

+15.8%

0.7

+9.3%

36.4

39.1

+2.7

+7.6%

27.9

29.7

+1.8

+6.5%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

8.4

9.4

+0.9

+11.3%

Ordinary profit

0.6

0.7

+0.0

+9.3%

Net income

0.3

0.4

+0.0

+16.1%

Ordinary expenses
Underwriting expenses

FY10.1H

ChangeUnderwriting income

Ordinary revenues

0.6

FY11.1H

39.9
+7.6%

FY11.1H(Billions of yen)Ordinary revenues and ordinary profit increased year on year.
Ordinary revenues increased, due to an increase in net premiums
written led by a growing number of in-force policies primarily for
automobile insurance.
Ordinary profit increased due to an increase in ordinary profit anda reversal of catastrophe reserve which offset the negative impactof the rising loss ratio.

10.9.30

11.3.3111.9.30

Underwriting reserves

62.3

64.0

67.6

+3.6

+5.6%

Total net assets

15.8

16.7

17.2

+0.4

+2.8%

103.9

109.3

114.6

+5.3

+4.8%

(Billions of yen)

Total assets

Change from 11.3.31

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

15

Sony Assurance posted a 7.6% increase in ordinary revenues year on
year, to ¥39.9 billion, due to increased net premiums written, as thenumber of insurance policies in force grew in its mainstay automobile
insurance.
Ordinary profit increased 9.3% year on year, to ¥0.7 billion due to anincrease in ordinary profit and a reversal of catastrophe reserve which
offset the negative impact of the rising loss ratio.
Net income increased 16.1% year on year, to ¥0.4 billion.

15

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

FY10.1H

FY11.1H

Change Increased owing to an increase in the numberof policies in force for automobile insurance.

Direct premiums written

36.4

39.0

+7.3%

Net premiums written

36.7

39.4

+7.5%

Net losses paid

19.0

21.1

+11.4%

Underwriting profit

0.3

0.3

(4.0%)Net loss ratio

58.2%

60.1%

+1.9ptNet expense ratio

24.7%

25.5%

+0.8ptCombined ratio

83.0%

85.7%

+2.7ptNet expense ratio is equal to the ratio of total underwriting costs to net premiums written.

 Increased owing mainly to an increase in thenumber of policies in force for automobile
insurance, as well as rising unit cost of
insurance claims and the effect of natural
disaster.
 Increased due primarily to the reinforcementof corporate systems and infrastructure basedon the expansion of business operations.

 Increased due to an increase in the number ofpolicies in force for automobile insurance.

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

10.9.30
Number of policies in force
Solvency margin ratio

11.3.3111.9.30

Change from 11.3.31+0.05 million

1.33 million

1.38 million

1.44 million

1,010.3%

981.4%

960.9%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+4.1%(20.5pt)

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

16

Here is an overview of Sony Assurance’s performance.

16

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

Net Premiums Written

FY10.1H

FY11.1H

FY10.1H

Change71

Fire
MarinePersonal accident*
Voluntary automobile
Compulsory
automobile liability

Change66(7.7%)

Fire

3

64

－

Marine618+169.7%

－

－

－

3,551

3,645

+2.6%

Personal accident*

3,679

3,745

+1.8%

+7.8%

Voluntary automobile

32,64835,206

+7.8%

369

408

+10.6%

36,70739,443+7.5%

32,783－36,406Total

FY11.1H(Millions of yen)

(Millions of yen)

35,338－39,049－+7.3%

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is included in personal accident.

Net losses paid
FY10.1H

FY11.1H

Change(Millions of yen)
Fire

0

40

－

Marine711+56.1%+11.7%

Personal accident*
Voluntary automobile
Compulsory
automobile liability
Total

776

867

17,927

19,866+10.8%

319

410+28.3%

19,031

21,196+11.4%

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

17

This slide shows direct premiums written, net premiums written and net
losses paid by type.

17

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

Ordinary Profit

Personal accident insurance(Millions of policies)(Billions of yen)

Number of policies in force

Other

+8.0%

1.44

2

1.33

(Billions of yen)
50

1.4

1.22
+7.5%

40
0.3

30

33.6

0.3

36.7

39.4
3.7

1.5

1

3.6

3.5

0.8

35.2
32.6

20

1.5

1.2

0.4

1
+9.3%

0.6

29.7

0.4

0.6

0.7

0.5

10
0.2
0

0
FY09.1H

FY10.1H

FY11.1H

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.

0
FY09.1H

FY10.1H

FY11.1H

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

18(Left-hand graph)
The number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 8.0% year on
year, to 1.44 million policies.
Net premiums written posted a 7.5% year-on-year increase, to ¥39.4
billion.
(Right-hand graph)
Ordinary profit increased year on year, as described in the previous
pages.

18

Sony Assurance Operating Performance (2)Reference
Net Expense Ratio +Earned/Incurred Loss Ratio
Earned/Incurred loss ratio

91.9

Net loss ratio

Net expense ratio

(%)

100

Combined Ratio(Net Expense Ratio + Net Loss Ratio)+1.9pt

95.2

96.1

94.2

100

89.1
83.3

80

69.5
69.7

+2.7pt

85.6
79.2

80

60

85.7

83.0

+1.1pt70.6

63.9+1.9pt

60

65.8

58.2

60.0
57.2

40

20

Net expense ratio

(%)

60.1

54.0

40

26.1

25.5

20

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

26.1

25.5

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

FY09

FY10

FY09

FY10

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss adjustment

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.

expenses and accumulation in provision for reserve for outstanding losses to earned premiums.

Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to*Note that earthquake insurance and compulsory automobile liability insurance are excluded

net premiums written.

from the above calculation.

19(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which isin a growth phase, we show the earned/incurred loss ratio, which is theaccrual-basis loss ratio.
For the six months ended September 30, 2011, the E.I. loss ratio
increased 1.1 percentage point year on year, to 70.6%, owing mainly torising unit cost of insurance claims and the effect of natural disaster.
The net expense ratio increased 0.8 percentage point, to 25.5%, due
primarily to the reinforcement of corporate systems and infrastructure
based on the expansion of business operations.
(Right-hand graph)
The net loss ratio rose 1.9 percentage point compared with the same
period of the previous fiscal year, to 60.1%, due to an increased amountof net loss paid in line with the increasing number of policies in force.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 2.7 percentage points year on year, to 85.7%.

19

Sony Assurance Operating Performance (3)Solvency Margin Ratio(%)<Reference>(20.5pt)

1,200

1,010.3

New solvency margin ratio effective as of the end of FY11

981.4

960.9

March 31, 2011 : 631.0%
September 30, 2011 : 617.0%
Variation factor from the previous standard

800◆Stricter risk measurement

Note:
Legislation concerning the calculation of the solvency margin ratio
has been revised from the standpoint of raising its credibility, andthese new standards are to become effective as of the end of fiscal
2011 (March 31, 2012). The above-stated figures are calculated on
the assumption that these changes are applied at March 31, andSeptember 30, 2011.

400

010.9.30

11.3.3111.9.30

20

As of September 30, 2011, Sony Assurance’s solvency margin ratio was
960.9%, down 20.5 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reason forthe decrease from the current standard is the stricter risk measurement.

20

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

15.4

Ordinary profit(1.9%)

15.1(Billions of yen)

FY10.1H

15.1

(0.2)

(1.9%)

Gross operating profit

8.3

9.3

+1.0

+12.6%+24.2%

6.3

7.8

+1.5

Net fees and commissions(0.07)

0.08

+0.15

－

Net other operating income

2.0

1.4

(0.6)

(30.8%)

General andadministrative expenses

6.3

6.8

+0.5

+8.0%

Ordinary profit

1.6

2.2

+0.5

+30.0%Net income

0.8

1.2

+0.4

+45.5%Net operating profit

1.8

2.3

+0.5

+28.7%

Change from 11.3.31

2.2+30.0%

FY10.1H

FY11.1H(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥1.0 billion year on year due
mainly to an increase in net interest income.
- Net interest income increased ¥1.5 billion owing primarily to
an increase in interest income on loans led by the growing
balance of mortgage loans and a decrease in interest
expenses on yen deposits.
- Net other operating income decreased ¥0.6 billion reflecting
lower gains on bond dealing transactions.
Net operating profit increased, owing to an increase in grossoperating profit.
Customer assets decreased ¥11.8 billion from March 31, 2011reflecting a decreasing balance of investment trust under the
bear market and the negative impact of yen appreciation on
the foreign exchange conversion of foreign currency deposits.

Change15.4

Net interest income

1.6

FY11.1H

Ordinary revenues(Billions of yen)

10.9.30

11.3.3111.9.30

Securities

958.3

940.1

894.8

(45.2)

Loans

636.4

722.4

776.1

+53.7

+7.4%

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Customer assets

1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Total net assets

58.3

59.9

59.5

(0.4)

(0.7%)

1.1

0.4

(0.4)

(0.8)

－

1,700.7

1,761.8

1,769.2

+7.4

+0.4%

Net unrealized gains (losses)
on other securities (net of taxes)
Total assets(4.8%)

Line item amounts are truncated below ¥100 million (excluding net fees and commissions);
percentage change figures are rounded.

21

Highlights of Sony Bank’s operating performance (non-consolidated
basis) are shown here.
Sony Bank’s ordinary revenues decreased 1.9% year on year, to ¥15.1
billion, owing primarily to a decrease in gains on foreign exchangetransactions.
Gross operating profit increased 12.6% from a year earlier, to ¥9.3 billion,
reflecting an increase in net interest income led primarily by an increase
in interest income on loans led by the growing balance of mortgage loans
and a decrease in interest expenses on yen deposits.
General and administrative expenses expanded 8.0% year on year, to¥6.8 billion, due to the personnel reinforcement associated with the fullscale entry into credit card business.
As a result, ordinary profit increased 30.0%, to ¥2.2 billion.
Net income amounted to ¥1.2 billion, up 45.5% from the same period of
the previous fiscal year, due to higher ordinary profit.

21

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

10.9.30

11.3.3111.9.30

Change1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Yen

1,241.7

1,289.8

1,284.3(5.5)(0.4%)

343.0

359.2

360.8

+1.6

+0.5%

98.8

106.4

98.5

(7.9)

(7.5%)

Customer assets

Foreign currency
Investment trusts

636.4

722.4

776.1

+53.7

+7.4%

Mortgage loans

581.3

656.0

697.8

+41.8

+6.4%

Others

55.0

66.4

78.2

+11.8

+17.9%

828

859

881

+22

+2.6%

11.76%

10.84%

10.52%

Loans outstanding Yen deposits decreased due to a shift toforeign currency deposit driven by yen
appreciation and a difficulty in acquiring
new yen deposit in the low interest rate
conditions.
 Foreign currency deposit slightly
increased reflecting growing demand forsaving foreign currency under the market
fluctuation while the sharp hike in the yen
might have the negative impact on theforeign exchange conversion.
(Approx. ¥3.4 billion)
 Investment trusts decreased reflecting adecline in reference price though sales
volume rose steadily.

*1

Number of accounts (thousands)
Capital adequacy ratio (*2)(domestic criteria)(0.32pt)*1 Loans in others include corporate loans of ¥70.4 billion.

 Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.
.

Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

22

Here is an overview of Sony Bank’s performance.

22

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis(Billions of yen)

FY09.1H

FY10.1H

FY11.1H

7.7

8.2

9.3

+1.0

+12.8%

6.6

7.2

8.7

+1.5

+21.5%

Gross operating profit
Net interest income *1①

Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)

ChangeGross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses
Net fees andcommissions *2 ②

0.6

0.5

0.6

+0.0

+19.2%Net other operating
income *3

0.4

0.5

(0.0)

(0.5)

－

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

7.2

7.7

9.3

+1.6

+21.3%

Operating expenses andother expenses ③

5.6

6.4

6.9

+0.5

+8.0%

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

1.6

1.2

2.4

+1.1

+88.7%

10●Managerial accounting 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 adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

(Billions of yen)

9.3
+21.3%

8

7.7
7.2
+8.0%

6.9

6.4
6

5.6

4

2.4
+88.7%

2

1.6
1.2●Core profit
0Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.
FY09.1H
FY10.1H
FY11.1H
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenue and profits.
(Left-hand table)
Net interest income on a managerial accounting basis increased ¥1.5 billion
year on year, to ¥8.7 billion, due to a growing balance of assets, especiallymortgage loans, and improved interest spread.
Net fees and commissions amounted to ¥0.6 billion, slightly up year on year,
owing to an increase in commissions from credit card business despite adecrease in profits on customer dealings in foreign currency transactions
stemming from adverse foreign exchange market conditions.
Net other operating income decreased ¥0.5 billion reflecting lower gains onbond dealing transactions.
Consequently, gross operating profit on a core profit basis increased ¥1.6 billion
year on year, to ¥9.3 billion.
(Right-hand graph)
Net operating profit on a core profit basis increased ¥1.1 billion year on year, to¥2.4 billion.

23

Sony Bank Operating Performance (1)<Reference>＜参考＞ Interest Spread (Managerial Accounting Basis)
Interest spread

Yield on financing

Yield on investment

(%)

2.00

1.50

1.00

1.44

1.42

0.87

0.88

0.57

0.53

0.50

1.40

1.41

1.41

+0.03pt

1.01

0.94

0.98

0.45

0.43

0.40

FY10.4Q

FY11.1Q

FY11.2Q

0.00
FY10.2Q

FY10.3Q

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.

24

This chart shows the interest spread on a managerial accounting basis.
The yield on investment for FY11. 2Q, was at 1.41%, unchanged from
FY11.1Q. The yield on financing dropped to 0.40%.
Interest spread has increased and reached 1.01% for FY11.2Q, up 0.03
percentage point from FY11.1Q.

24

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

828

Investment trusts

Loans
Mortgage loans

Others

+22

881

+53.7

859

776.1

800

722.4

2,000

1,683.6*Including corporate loans of ¥70.4 billion.

(Billions of yen)

78.2*

1,743.7

1,755.5

636.4

98.5
600

(11.8)
1,500

360.8

400

1,000

Deposits
total:

697.8

1,645.2
1,284.3
200

500

0

0

10.9.30

11.3.3111.9.30

10.9.30

11.3.3111.9.30

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

25(Left-hand graph)
As of September 30, 2011, customer assets (the sum of deposits and investment trusts)
were down ¥11.8 billion from March 31, 2011, to ¥1,743.7 billion.
As for the breakdown of customer assets as of September 30, 2011, deposits (the sumof Japanese yen and foreign currency deposits) amounted to ¥1,645.2 billion, down ¥3.8
billion from March 31, 2011.
Of which yen deposit decreased due to a shift to foreign currency deposit driven by yen
appreciation and a difficulty in acquiring new yen deposit in the low interest rate
conditions.
On the other hand, foreign currency deposit slightly increased ¥1.6 billion reflecting
growing demand for saving foreign currency under the market fluctuation while the sharp
hike in the yen might have the negative impact on the foreign exchange conversion(Approx. ¥3.4 billion).
Investment trusts were ¥98.5 billion, down ¥7.9 billion from March 31, 2011, reflecting adecline in reference price though sales volume rose steadily.
As of September 30, 2011, the number of accounts was 881 thousand, up 22 thousandaccounts from March 31, 2011.
(Right-hand graph)
Loans expanded to ¥776.1 billion, up ¥53.7 billion, from March 31, 2011, owing to a
growing balance of mortgage loans, as well as an increase in corporate loans.

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

Balance of Securities by Credit Ratings
AAA
BBB

AA
BB

A
Other
（％）

(Billions of yen)

20

1,200

(45.2)
1,000

958.3

940.1

894.8

15

(0.32pt)
800

11.76
10

10.84

10.52

600

5

400

200
0
10.9.30010.9.30

11.3.3111.9.3111.3.3111.9.30* 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 newly adopted the special exception of the standard mentioned above, in
accordance with the FSA public ministerial announcement No. 79 of 2008.

Amounts are truncated below ¥100 million.

26(Left-hand graph)
As of September 30, 2011, the balance of securities decreased ¥45.2
billion, to ¥894.8 billion from March 31, 2011 as a results of accumulating
loan balance to improve deposit-loan ratio and interest spread.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of September 30, 2011, Sony Bank’s non-consolidated capital
adequacy ratio (domestic criteria) was 10.52%, down 0.32 percentage
point from March 31, 2011. These figures indicate that Sony Bank has
maintained a sound financial basis.

26

Consolidated Financial Forecast
for the Year Ending March 31, 201227

27

Consolidated Financial Forecast
for the Year Ending March 31, 2012
FY10

Consolidated ordinary revenues

ChangeActualFY11
Forecast

1,002.2

1,022.0+ 2.0%+ 1.0%

FY10 actual vs.

Life insurance business

900.3

909.3

Non-life insurance business

74.1

80.4

+ 8.4%

Banking business

29.5

32.8

+ 11.0%(23.2%)

Consolidated ordinary profit

76.8

59.0

Life insurance business

72.1

53.0

(26.6%)

Non-life insurance business

2.1

2.6

+ 21.2%

Banking business

2.4

4.1

+ 70.3%

41.7

29.0

(30.5％)

Consolidated net income

Consolidated Ordinary Revenues

FY11 forecast

Banking business
Non-life insurance businessLife insurance business(Billions of yen)

1,000

1,002.2

1,022.0500

0SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2012, is unchanged from the forecast announced on May 20, 2011.

FY10 (Actual)

FY11 (Forecast)■Life insurance business
Ordinary revenues for FY11 are expected to increase 1.0% year on year, to ¥909.3 billion. We anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force. We expect ordinary profit to decrease
26.6% year on year, to ¥53.0 billion due to lower gains on sale of securities. During FY10, the business generated more net
capital gains through sale of securities than this fiscal year, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk. (Operating results for the first half of this fiscal year exceeded our forecast announced on May
20, 2011, as insurance claims and other payments relating to the Great East Japan Earthquake were lower than our estimates asof the end of the previous fiscal year. However, our financial forecast for this fiscal year remains unchanged from the previous
announcement, of May 20, 2011, due mainly to uncertainty about the financial market environment for the second half of thisfiscal year.)

Consolidated Ordinary Profit(Billions of yen)
100

Banking business
Non-life insurance businessLife insurance business

76.8
59.0

■Non-life insurance business
Ordinary revenues for FY11 are expected to rise 8.4% year on year, to ¥80.4 billion, due to an increase in net premiums written,
mainly for mainstay automobile insurance. Ordinary profit is expected to increase 21.2% year on year, to ¥2.6 billion, due
primarily to a rise in ordinary revenues and a reversal of catastrophe reserve which offset the negative impact of the rising loss
ratio, though the loss ratio for FY11 is expected to be higher than FY10.

50■Banking Business
Ordinary revenues for FY11, are expected to increase 11.0% year on year, to ¥32.8 billion, owing to an increase in net interest
income, bolstered mainly by a growing balance of loans, especially mortgages. Ordinary profit is expected to grow 70.3%, to ¥4.1
billion, from the previous fiscal year, as we anticipate a steady increase in gross operating profit, driven by business expansion.

0
FY10 (Actual)

FY11 (Forecast)(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)28

Here is our consolidated financial forecast for the fiscal year ending March 31, 2012.
Operating results for the first half of this fiscal year exceeded our forecast announced on
May 20, 2011, as insurance claims and other payments relating to the Great East Japan
Earthquake were lower than our estimates as of the end of the previous fiscal year in thelife insurance business. However, our consolidated financial forecast for this fiscal year
remains unchanged from the previous announcement, of May 20, 2011, due mainly touncertainty about the financial market environment for the second half of this fiscal year.
SFH’s consolidated financial results forecast for the fiscal year ending March 31, 2012 isas follows.
We expect consolidated ordinary revenues to increase 2.0%, to ¥1,022.0 billion,
compared with the period ended March 31, 2011, owing to steady business expansion in
all three business segments.
We expect consolidated ordinary profit and net income to decrease 23.2%, to ¥59.0
billion and 30.5%, to ¥29.0 billion respectively, due to lower gains on sale of securities.
During FY10, the business generated more net capital gains through sale of securities
than this fiscal year, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk.

28

Appendix

29

Appendix29

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: Individual Variable Annuities (4 types, 5 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*) As of November 14, 2011
Financial Highlights for FY11.1H:
Number of new policies: 494, New policy amount: ¥3.7 billion
Number of policies in force: 1,694 policies, Policy amount in force: ¥16.6 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 24% of the balance ofmortgage loans as of September 30, 2011
Sony Life accounts for 27% of the amount of
new mortgage loans for FY11.1H*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY11.1H* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

30

(Recent Topics 1)

30

Recent Topics 2<Highlights from the FY11.2Q onward>
2011-7-01

Sony Bank acquired a 57% equity interest in SmartLink Network, Inc., an industry-leading provider of credit card settlement
services

2011-8-03

Sony Assurance began offering a free application, “Drivers’ Navigation” to smart phone users

2011-8-08

Sony Bank began offering new mortgage loan, named "Variable Select Mortgage Loan"

2011-8-22

Sony Bank opened representative office in Sydney

2011-8-31

Sony Assurance declared conformity with the ISO 10002 International Standard for Complaints Management Systems

2011-9-05

AEGON Sony Life Insurance began offering "Catch Point II," a new individual variable annuity product (GMAB Type 2011),
through SMBC

2011-9-05

AEGON Sony Life Insurance began offering "Winning Road II," an individual variable annuity product (GLWB Type 2011),
through Juroku Bank

2011-10-03

AEGON Sony Life Insurance began offering "W Account II," a new individual variable annuity product (GMAB Type 2011),
through Kansai Urban Banking

2011-10-05

Sony Assurance opened its official page in “Facebook”(*) and its PR official account in “Twitter.”

2011-10-25

Sony Financial Holdings issued No. 1 unsecured corporate bonds

2011-11-02

Sony Life began offering new product: Cancer Drug Therapy Rider(*) Facebook is a refistered trademark of Facebook, Inc.

31

(Recent Topics 2)

31Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
zFair value information on securities with market value (except trading-purpose securities)(Billions of yen)zValuation gains (losses) on trading-purpose securities(Billions of yen)

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

32(Sony Life: Fair Value Information on Securities)

32

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

11.3.31②RealNet Assets

11.9.30

11.3.31③Solvency
Margin11.9.30

11.3.3111.9.30

Total shareholders’ equity

209.8

216.4

209.8

216.4

200.7

216.4

Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes

7.0
－
(1.4)

27.4
－
(1.4)

Reserve for price fluctuations

－

－

7.0
－
(1.4)
16.7

27.4
－
(1.4)
20.6

－
20.8
－
16.7

－
49.5
－
20.6

Contingency reserve

－

－

51.5

53.3

51.5

53.3

General reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate

－

－

1.9

1.9

1.0

1.0

－
－
－
－
－
－
215.3

－
－
－
－
－
－
242.4

334.2
1.1
－
－
(22.1)
8.0
606.9

342.1
0.9
－
－
148.8
19.6
829.9

334.2
1.1
0.6
63.3
－
－
690.3

342.1
0.9
0.6
72.2
－
－
756.9

Net unrealized gains (losses) on available-for-sale securities

Excess amount of policy reserves based on Zillmer method
Unallotted portion of reserve for policyholders' dividends
Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total

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

②Before tax

Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥629.1 billion as of March 31, 2011, and ¥681.1 billion as of September 30, 2011.

Amounts are truncated below ¥100 million.

33(Sony Life’s Breakdown of Net Assets)33

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

Note: Cabinet Office Ordinance No. 23 of 2010 and FSA public ministerial announcement No. 48 of 2010 prescribe a revision in the methods of calculating
total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive).
These changes are to be applied from the end of FY11. The above-stated figures are calculated on the assumption that these changes are applied as of September 30, 2011.
Amounts are truncated below ¥100 million.

34(Sony Life’s Solvency Margin Ratio)

34

Status of Exposure in the five European countries

9SFH Group’s Exposure in the five European countries(Greece, Ireland, Italy, Portugal, Spain)

Sovereign bond

OthersSony Life

―

―

Sony
Assurance――

Sony Bank―¥1.6 Billion(Corporate bonds of Spanish company)(Note) As of September 30, 2011. Exposure of Sony Life is for general account assets.

35

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Contact: Corporate Communications & Investor Relations Department
Sony Financial Holdings Inc.
TEL： +81-3-5785-1074

36(Contact)36