May 20, 2010
Sony Financial Holdings Inc.

Supplementary Data on Sony Life’s Financial Results
for the Year Ended March 31, 2010
<Contents>
1. Overall Company(1) Status of Investment of Assets (Overall Company)(i) Composition of Overall Company Assets(ii) Changes in Overall Company Assets(2) Securities (Overall Company)(i) Valuation Gains/Losses on Trading-Purpose Securities(ii) Fair Value Information on Securities(iii) Fair Value Information on Monetary Trusts(iv) Fair Value Information on Derivative Transactions

P.2
P.2
P.3
P.3
P.4
P.5

2. General Account Assets(1) Securities(i) Details of Securities(ii) Balance of Securities by Remaining Period(iii) Fiscal Year-end Yields on Bonds(iv) Domestic Stocks Owned by Industry(v) Fair Value Information on Derivative Transactions(2) Loans(i) Details of Loans(3) Overseas Investment(i) Details by Assets(ii) Foreign Currency Denominated Assets by Currency(iii) Overseas Investments by Region(4) Real Estate(i) Details of Tangible Fixed Assets(ii) Balance of Real Estate and the Number of Buildings for Rent

P.6
P.7
P.7
P.8
P.9
P.10
P.11
P.11
P.12
P.13
P.13

3. Fair Value Information on Separate Account Assets for Individual Variable Life Insurance and Annuities(1) Valuation Gains/Losses on Trading-Purpose Securities(2) Details of Securities(3) Fair Value Information on Monetary Trusts(4) Fair Value Information on Derivative Transactions

P.14
P.14
P.14
P.15

4. Other(1) Five-year Key Performance Index(2) Policy Reserve Calculating Methods and Rations for Individual Life Insurance and Individual Annuities

1

P.16
P.17

1.Overall Company(1) Status of Investment of Assets (Overall Company)(i) Composition of Overall Company Assets
Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency denominated assets(Millions of yen)
As of March 31, 2010
Amount%As of March 31, 2009
Amount
%70,974

607,625
2,819,638

1.9
15.9
74.0

288,772
3,539,114

6.7
82.6

2,496,274

65.5

3,151,757

73.5

70,620189,426
129,275
60,15063,317
120,462
81,75435,43975,243(208)
3,810,929
106,654

1.9
5.0
3.4
1.6
1.7
3.2
2.1
0.9
2.0
(0.0)
100.0
2.8

103,098
186,043
88,846
97,196
98,214
127,599
79,91527,68686,156(212)
4,286,540
132,323

2.4
4.3
2.1
2.3
2.3
3.0
1.9
0.6
2.0
(0.0)
100.0
3.1

-

137,507

3.2--(ii) Changes in Overall Company Assets
Category

As of March 31, 2009
Amount(24,324)(286,326)
430,706
663,540(127,612)(81,997)(61,485)(20,511)(23,224)
11,773(1,113)35,439(14,876)(134)
151,143(90,559)

Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Foreign currency denominated assets

2(Millions of yen)
As of March 31, 2010
Amount

66,532(318,853)
719,475
655,483
32,478(3,382)(40,428)
37,04634,897
7,137(1,838)(7,753)
10,912(3)475,610
25,669(2) Securities (Overall Company)(i) Valuation Gains/Losses on Trading-Purpose Securities

Category(Millions of yen)
As of March 31, 2010
Net valuation gains/losses
Balance sheet amountrecorded in income

As of March 31, 2009
Net valuation gains/losses
Balance sheet amountrecorded in income

Trading-purpose securities
283,272
Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

(77,934)

350,302

73,005(ii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)
As of March 31, 2010

As of March 31, 2009

Category

Held-to-maturity securities

Carrying
value before
mark-tomarket

Fair value

1,399,011

1,425,713

Carrying
value before
Unrealized Unrealized mark-togains
lossesmarketNet unrealized gains/losses

-

-

-

-

-

-

(20,453)-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

24,202
26,993
1,421(3,641)(3,641)(570)
50,90553,8601,421(3,805)(3,805)(570)-

56,286
51,624
4,510
150
150
1
85,27780,615
4,510
150
150
1
-

32,083
24,630
3,088
3,791
3,791
572
34,372
26,755
3,088
3,955
3,955
572
-

1,126,543
1,061,593
51,723
8,084
8,084
5,140
3,402,172
3,295,318
51,72349,98949,9895,140-

1,166,944
1,090,012
62,183
8,010
8,010
6,738
3,422,120
3,295,356
62,183
57,843
57,843
6,738-

Domestic bonds
Domestic stocks
Foreign securities
Bonds

1,675,529
1,546,918
56,95064,21064,210-Stocks, etc.
Other securities

7,450

Money claims purchased
Others
Total
Domestic stocks
Foreign securities
Bonds

6,879

3,074,540
2,904,503
56,950105,636
105,636

Stocks, etc.
Other securities--

Certificates of deposit

Domestic bonds

1,699,732
1,573,911
58,37160,56960,5693,125,446
2,958,363
58,371
101,831
101,831

7,450

Monetary claims purchased

6,879

-

Certificates of deposit
Others-28,991

2,288

2,275,629

2,255,176

Unrealized Unrealized
gains
losses

Policy reserve matching bonds

Available-for-sale securities

26,702Net unrealized gains/losses
Fair value

10,572-

31,026----40,401
28,41810,459
(74)
(74)
1,597
19,94737
10,459
7,853
7,853
1,597
-

42,252
29,677
10,95619
19
1,598
52,82432,323
10,956
7,947
7,947
1,598
-

1,850
1,259
497
93
93
0
32,87732,285
497
93
93
0
-

Notes: 1. The above table includes assets such as certificates of deposits which are permitted to be treated as equivalent to securities defined in the
Financial Instruments and Exchange Law of Japan.
2. Carrying value before mark-to-market and net unrealized gains/losses on monetary trusts, including items other than trading securities,
amounted to ¥288,289 million and ¥2,514 million.
3. Carrying value before mark-to-market represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

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

As of March 31, 2009

Category
Held-to-maturity securities
Unlisted foreign bonds
Others
Policy reserve matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities
Unlisted domestic stocks
Unlisted foreign stocks
Unlisted foreign bonds
OthersTotal

6,047
24,721
4739
23,97730,7693

As of March 31, 2010
15,847
24,88342885
23,95540,731

c. Fair Value Information consisting of those stated in the previous table-a and foreign exchange and other gains (losses) for table-b.
(Millions of yen)
As of March 31, 2009
Category

Held-to-maturity securities
Policy reserve matching bonds
Stocks of subsidiaries andaffiliated companies
Available-for-sale securities
Domestic bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc.
Other securities

Carrying
value before
mark-tomarket

Fair value

1,399,011

1,425,713

Foreign securities
Bonds
Stocks, etc.
Other securities

28,991

2,288

2,275,629---

Unrealized Unrealized
gains
losses2,255,176--(20,453)-

10,572-

31,026
-

6,047

-

-

-

15,847

15,847---1,700,251
1,546,918
56,95464,95064,210739
31,427

1,719,894
1,573,911
58,376
61,27560,569705
26,331

19,643
26,993
1,421(3,675)(3,641)(33)(5,095)
46,34653,8601,421(3,838)(3,805)(33)(5,095)-56,761
51,624
4,510
150
150

37,117
24,630
3,088
3,825
3,791
33
5,572
39,406
26,755
3,088
3,988
3,955
33
5,572
-

1,151,426
1,061,593
51,766
8,970
8,084
885
29,0953,442,904
3,295,318
62,06656,422
49,9896,433
29,095-

1,188,138
1,090,012
62,225
8,809
8,010
798
27,0903,459,162
3,295,356
72,52564,18957,843
6,346
27,090-36,711
28,41810,459
(160)
(74)
(86)
(2,005)
16,25837
10,459
7,766
7,853
(86)
(2,005)-42,946
29,677
10,95619
19
2,292
53,51932,323
10,956
7,947
7,947
2,292
-

6,234
1,259
497
180
93
86
4,298
37,26132,285
497
180
93
86
4,298
-

-

OthersDomestic stocks

26,702-Net unrealized gains/losses
Fair value

6,047

Certificates of deposit
Total

Carrying
value before
Unrealized Unrealized mark-togains
lossesmarketNet unrealized gains/losses-

Money claims purchased

Domestic bonds

As of March 31, 2010

3,105,310
2,904,503
59,954
109,424
105,636
3,787
31,427

Monetary claims purchased

3,151,656
2,958,363
61,376
105,585
101,831
3,753
26,331-

Certificates of deposit
Others-476
85,75280,615
4,510
150
150
476
-

(iii) Fair Value Information on Monetary Trusts(Millions of yen)
As of March 31, 2009

Category

Monetary trusts

As of March 31, 2010

Net unrealized gains/losses

Balancesheet amount

Fair value

607,625

607,625

balance sheet
Unrealized Unrealized
amountgains
losses---288,772

Net unrealized gains/losses
Fair value

Unrealized Unrealized
gains
losses288,772---

Note: The table above includes ¥50 million of jointly invested monetary trusts.
■ Monetary Trusts for Investment(Millions of yen)
As of March 31, 2009
Category

Balance sheet amount

As of March 31, 2010

Net valuation
gains (losses)

32,020

Monetary Trusts for Investment

Balance sheet amount(4,413)

Net valuation
gains (losses)

681

5,711

■ Monetary Trusts for Held-to-maturity, Policy Reserve Matching Securities and Others(Millions of yen)
As of March 31, 2009
Category

Monetary trusts for held-tomaturity
Monetary trusts for policy
reserve matching
Other monetary trusts

As of March 31, 2010

Carrying
value before
Unrealized Unrealized mark-tomarket
gains
lossesCarrying
value before
mark-tomarket

Fair value

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

567,248575,5548,306

17,4789,172

285,525

288,039

2,514

2,968

453

Net unrealized gains (losses)

Net unrealized gains (losses)

4

Fair value

Unrealized Unrealized
gains
losses(iv) Fair Value Information on Derivative Transactions (Overall Company)■ Qualitative Information
With regard to investment, Sony Life's basic policy is to create portfolios that, while incorporating risk, ensure stable revenues and profits over the medium to long term.
To restrain price fluctuations risk, foreign exchange risk and credit risk, Sony Life allocates a relatively small percentage of assets to stocks and securities denominatedin foreign currencies. In addition, although Sony Life provides policy loans, it does not extend commercial loans.
Transactions
When creating portfolios, Sony Life concentrates primarily on Japanese government and corporate bonds. Although Japanese government and corporate bonds help
ensure stable revenues and profits over the medium to long term, they involve asset value fluctuation risk, owing to interest rate fluctuations. In addition to pricefluctuations risk, bonds denominated in foreign currencies involve foreign exchange risk. Depending on financial market conditions, Sony Life employs such derivative
instruments as over-the-counter bond options, stock index options, individual stock options and currency options.
Policies for and purposes of derivative transactions
Sony Life purchases derivative products primarily to hedge existing assets, by using target buying.
Risks
The derivative instruments that Sony Life uses are susceptible to fluctuations in market prices and risk, but as Sony Life principally hedges existing assets and employs
target buying, the risk on its total portfolio, including the underlying assets, is offset to some degree by risks on the off-balance-sheet transactions themselves. Credit
risk is inherent to derivative instruments, but as the off-balance-sheet transactions that Sony Life conducts involve instruments that are listed on Japanese stock
exchanges, we believe that credit risks are small. In addition, when conducting over-the-counter transactions, Sony Life selects parties that we believe pose little risk ofdefaults.
Risk Management Systems
Sony Life’s balance of derivative transactions is within the limits that Sony Life has set in-house. On transactions conducted by the division in charge of investment, theadministrative division receives reports directly from the transaction counterparty. This system enables the administrative division and the investment division to
independently determine derivative positions and transaction profits and losses.
■ Quantitative Information
Gains (losses) on derivatives with and without hedge accounting
Not applicable

Interest-related transactions
Not applicable

Currency-related transactions
Not applicable

Stock-related transactions
Not applicable

Bond-related transactions
Not applicable52. General Account Assets(1) Securities(i) Details of Securities(Millions of yen)

As of March 31, 2009

As of March 31, 2010

Category
Amount%Amount%Government bonds

2,138,237

83.5

2,955,399

92.7

Municipal bonds

19,4940.8

19,752

0.6

Corporate bonds

226,735

8.9

57,7801.8

18,455

0.7

37,585

1.2

Domestic stocks

50,9742.0

72,525

2.3

Foreign securities

115,279

4.5

75,285

2.4

Bonds

93,7093.7

49,915

1.6

Stocks, etc.

21,5690.8

25,3700.8

Other securities

8,516

0.3

8,067

0.3

2,559,237

100.0

3,188,812

100.0

Public corporation bonds

Total

6

(ii) Balance of Securities by Remaining Period(Millions of yen)

Category

Due after
Due after
Due after one
Due after five
three years
seven years Due after ten
year throughyears throughyears
through fivethrough ten
three years
seven years
years
years

Due in one
year or less

Total

As of March 31, 2009

Government bonds

-

8,120

44,814

196,146

332,126

1,557,030

2,138,237

Municipal bonds

40

1,687

3,307

1,028

13,430-19,494

Corporate bonds

64,382

66,44536,191

16,492

27,62915,594

226,735

Domestic stocks

-

-

-

-

-

50,97450,974Foreign securities

9,024

19,50322,604

6,810

11,83045,505

115,279

8,853

18,35019,530

1,139

4,213

41,62393,709Stocks, etc.

171

1,152

3,073

5,671

7,617

3,882

21,569Other securities

56

-

398

443

738

6,879

8,516

73,50495,756

107,315

220,920

385,755

1,675,984

2,559,237--

66,085240,011

142,419

2,506,883

2,955,399

Municipal bonds

1,648

-

4,401

13,702--

19,752

Corporate bonds

265

7,997

10,058

10,427

7,306

21,72657,780

Domestic stocks

-

-

-

-

-

72,52572,525

Foreign securities

2,544

4,404

4,063

10,196

6,115

47,96175,285

2,068

3,113

-

1,116

1,712

41,90449,915

Stocks, etc.

475

1,291

4,063

9,079

4,403

6,056

25,370

Other securities

-

36

642

-

649

6,738

8,067

4,457

12,43885,251

274,338

156,490

2,655,835

3,188,812

Bonds

Total
Government bonds
As of March 31, 2010

Bonds

Total

(iii) Fiscal Year end Yields on Bonds
Category
As of March 31, 2009

As of March 31, 2010

Domestic bonds

1.83%

2.07%

Foreign bonds

1.51%

0.82%

7

(iv) Domestic Stocks Owned by Industry (General Account)
Category

Manufacturing industries

Fisheries, agriculture and forestry
MiningConstruction
Food products
Textiles and clothing
Pulp and paper
Chemicals
Medicals
Oil and coal products
Rubber products
Glass and stone products
Steel
Non-steel metals
Metal products
Machinery
Electric appliances
Transportation vehicles
Precision machinery
OthersElectric and gas utilities
Ground transportation
Water transportation
Air transportation
Warehouses/ transportation
Information/ telecommunications
Transportation/
Information
telecommunications
Commerce

Wholesalers

Financial services/
insurance

RetailersBanking
Securities and commodity futures trading
Insurance
Other financial services
Real estate
Service companies
Total(Millions of yen)
As of March 31, 2010
Amount%As of March 31, 2009
Amout
%

102
55
1,468
339
59
3,971
3,570
219
98
120
1,250
2,218
439
1,535
5,825
4,616
1,734
701
1,431
1,253
14
364
2,514

-

4.9

59
217
1,175
1,976
485
220
3,524
2,373
388
321
725
1,583
686
428
2,733
8,743
5,768
918
1,521
2,926
2,248
313
252
141
3,117

0.1
0.3
1.6
2.7
0.7
0.3
4.9
3.3
0.5
0.4
1.0
2.2
0.9
0.6
3.8
12.1
8.0
1.3
2.1
4.0
3.1
0.4
0.3
0.2
4.3

4,268

8.4

3,235

4.5

5,130

10.1

5,741

7.9

1,560
5
3,697
95
2,255
54
50,974

3.1
0.0
7.3
0.2
4.4
0.1
100.0

5,353
1,058
11,593
483
1,327
882
72,525

7.4
1.5
16.0
0.7
1.8
1.2
100.0

0.2
0.1
2.9
0.7
0.1
7.8
7.0
0.4
0.2
0.2
2.5
4.4
0.9
3.0
11.4
9.1
3.4
1.4
2.8
2.5
0.0
0.7
-

Note: Categories of stock holdings by industry are based on the classification by Securities Identification Code Committee of Japan.

8

(v) Fair Value Information on Derivative Transactions (General Account)■ Qualitative Information
Transactions
Not applicable

Policies for and purposes of derivative transactions
Not applicable

Risks
Not applicable

Risk Management Systems
Not applicable■ Quantitative Information
Gains (losses) on derivatives with and without hedge accounting
Not applicable

Interest-related transactions
Not applicable

Currency-related transactions
Not applicable

Stock-related transactions
Not applicable

Bond-related transactions
Not applicable9(2) Loans(i) Details of Loans(Millions of yen)
Category

As of March 31, 2009

Policy Loans
Premium loans
Policyholder loans
Commercial loans
OthersTotal

10

As of March 31, 2010

120,462
107,291
13,170-127,599
113,455
14,144-120,462

127,599

(3) Overseas Investment(i) Details by Assets
Assets denominated in foreign currency (yen amount not fixed)
Category(Millions of yen)

As of March 31, 2009
AmountAs of March 31, 2010%

Amount%Foreign bonds

13,766

11.0--

Foreign stocks

3,753

3.0

3,846

5.1

Cash, deposits and other

16,77713.4

17,876

23.7

Non yen-denominated cash, cash
equivalents and other assets

34,29727.4

21,72328.8

Assets denominated in foreign currency (yen amount fixed)
None

Assets denominated in yen
Category(Millions of yen)
As of March 31, 2009
AmountLoans to borrowers located outsideof JapanForeign bonds and others
Total

As of March 31, 2010%

Amount

%

-

-

-

-

90,692

72.6

53,60071.2

90,692

72.6

53,600

71.2

Total

(Millions of yen)
Category

Overseas Investment

As of March 31, 2009
AmountAs of March 31, 2010%

124,990

Amount100.0%

75,323100.0(ii) Foreign Currency Denominated Assets by Currency(Millions of yen)
Category

As of March 31, 2009
AmountAs of March 31, 2010%

Amount%U.S. dollar

26,201

76.4

12,579

57.9

Euro

4,731

13.8

5,762

26.5

Canadian dollar

-

-

-

-

Australian dollar

-

-

-

-

British pound

316

0.9

332

1.5

Denmark krone

-

-

-

-

Norwegian krone

-

-

-

-

3,047

8.9

3,047

14.0

Yuan

0

0.0

0

0.0

Taiwan dollar

-

-

0

0.0

34,297100.0

21,723100.0

Philippine peso

Total

11

(iii) Overseas Investments by Region(Millions of yen）

As of March 31, 2009
Foreign securities

Category

Bonds
Amount%AmountLoans to borrowers locatedoutside of Japan

Stocks, etc.
%

Amount%Amount%North America

20,98516.8

13,766

13.3

7,218

33.5

-

-

Europe54,87844.0

48,465

47.0

6,413

29.7

-

-

Oceania

-

-

-

-

-

-

-

-

Asia

3,048

2.4

-

-

3,048

14.1

-

-

Latin America

38,75931.1

33,870

32.8

4,889

22.7

-

-

-

-

-

-

-

-

-

-

7,102

5.7

7,102

6.9

-

-

-

-

-

-

-

-

-

-

-

-

124,774

100.0

103,204

100.0

21,569

100.0

-

-

Middle East
AfricaInternational
Organizations
Total

As of March 31, 2010
Foreign securities

Category

Bonds
Amount%AmountLoans to borrowers locatedoutside of Japan

Stocks, etc.
%

Amount%Amount%North America

7,174

9.5

-

-

7,174

28.3

-

-

Europe50,264

66.8

43,021

86.2

7,242

28.5

-

-

Oceania

-

-

-

-

-

-

-

-

Asia

3,047

4.0

-

-

3,047

12.0

-

-

Latin America

7,904

10.5

-

-

7,904

31.2

-

-

-

-

-

-

-

-

-

-

6,894

9.2

6,894

13.8

-

-

-

-

-

-

-

-

-

-

-

-

75,285100.0

49,915100.0

25,370

100.0

-

-

Middle East
AfricaInternational
Organizations
Total

12

(4) Real Estate(i) Details of tangible fixed assets(Millions of yen)

Category

Amount ofBalance at theBalance at the
Increase in the Decrease in the depreciation inprevious fiscal
current fiscal
current year
current year
the current
year end
year endyear

Amount ofaccumulated
depreciation% ofaccumulated
depreciation

As of March 31, 2009
As of March 31, 2010Land

32,99679--

33,076--

Buildings

49,787

661

58
(15)

2,892

47,498

11,401

19.4

Leased assets

-

420

1

82

337

196

36.8

Construction in progress

84

1,174

78

-

1,179

-

-

Other tangible assets

783

145

216

701

919

56.7

Total

83,561

2,482

3,190

82,793

12,51720.5

Land33,076---33,076--

Buildings

47,498

2,335

103
(3)

2,891

46,83914,026

23.0

Leased assets

337

-

0

64

272

188

40.8

Construction in progress

1,179

-

1,179

-

-

-

-

1,104

60.0

15,318

24.3

11
(4)
149
(20)

15
257
735
(0)
1,299
Total
82,7932,642
3,213
80,923(3)
Note: ( ) in the "Decrease in the current year" describes the amount of impairment losses.
Other tangible assets

701

307

(ii) Balance of real estate and the number of buildings for rent
Category（Millions of yen)

As of March 31, 2009 As of March 31, 2010

Balance of real estate

81,754

79,915for corporate use

3,330

3,739

for rent

78,42376,1755

5Number of buildings for rent

13

3. Fair Value Information on Separate Assets for Individual Variable Life Insurance and Annuities
As Sony Life jointly invests the assets relating to individual variable life insurance and individual variable annuities,
the figures states below are the total of the individual variable life insurance and annuities.

(1) Valuation Gains/Losses on Trading-Purpose Securities(Millions of yen)
Category
Trading-purpose securities

As of March 31, 2009
Net valuation
Balance sheet amount gains/losses recorded
in income

260,401

As of March 31, 2010
Balance sheet amount

Net valuation
gains/losses recorded
in income(73,616)

350,30267,293111,806
19,64574,14735,566
38,58154,801
260,401(Millions of yen)
As of March 31, 2010
Balance sheet amount
118,824
30,572
110,758
38,931
71,82690,147350,302(2) Details of Securities
Category

As of March 31, 2009
Balance sheet amountGovernment and corporate bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Total(3) Fair Value Information on Monetary Trusts
None.

14

(4) Fair Value Information on Derivative Transactions■ Qualitative Information
With regard to investment, Sony Life's basic policy is to create portfolios that, while incorporating risk, ensure stable revenues and profits over the medium to long term.
To restrain price fluctuations risk, foreign exchange risk and credit risk, Sony Life allocates a relatively small percentage of assets to stocks and securities denominatedin foreign currencies. In addition, although Sony Life provides policy loans, it does not extend commercial loans.
Transactions
When creating portfolios, Sony Life concentrates primarily on Japanese government and corporate bonds. Although Japanese government and corporate bonds help
ensure stable revenues and profits over the medium to long term, they involve asset value fluctuation risk, owing to interest rate fluctuations. In addition to pricefluctuations risk, bonds denominated in foreign currencies involve foreign exchange risk. Depending on financial market conditions, Sony Life employs such derivative
instruments as over-the-counter bond options, stock index options, individual stock options and currency options.
Policies for and purposes of derivative transactions
Sony Life purchases derivative products primarily to hedge existing assets, by using target buying.
Risks
The derivative instruments that Sony Life uses are susceptible to fluctuations in market prices and risk, but as Sony Life principally hedges existing assets and employs
target buying, the risk on its total portfolio, including the underlying assets, is offset to some degree by risks on the off-balance-sheet transactions themselves. Credit risk
is inherent to derivative instruments, but as the off-balance-sheet transactions that Sony Life conducts involve instruments that are listed on Japanese stock exchanges,
we believe that credit risks are small. In addition, when conducting over-the-counter transactions, Sony Life selects parties that we believe pose little risk of defaults.
Risk Management Systems
Sony Life’s balance of derivative transactions is within the limits that Sony Life has set in-house. On transactions conducted by the division in charge of investment, theadministrative division receives reports directly from the transaction counterparty. This system enables the administrative division and the investment division to
independently determine derivative positions and transaction profits and losses.

■ Quantitative Information
Gains (losses) on derivatives with and without hedge accounting
Not applicable

Interest-related transactions
Not applicable

Currency-related transactions
Not applicable

Stock-related transactions
Not applicable

Bond-related transactions
Not applicable154. Other(1) Five-year key performance index(Millions of yen)
For the year
For the year
For the year
For the year
For the year
ended March 31, ended March 31, ended March 31, ended March 31, ended March 31,
2006
2007
2008
2009
2010

Ordinary revenues

696,426

689,591

741,250

765,910881,798

Ordinary profit

24,35914,89539,29032,40980,099Core profit

28,56424,36623,571

38,00564,517

Net income

9,616

7,494

18,51433,783

46,13865,000(65,000 thousand
shares)65,000(65,000 thousand
shares)65,000(65,000 thousand
shares)

70,000(70,000 thousand
shares)

70,000(70,000 thousand
shares)3,103,241

3,445,970

3,659,786

3,810,929

4,286,540

280,682

322,672

321,789

275,160

373,604

2,739,264

3,088,888

3,375,090

3,592,376

3,985,610

86,91896,804

108,688

120,462

127,599

Securities

2,132,216

2,217,902

2,388,932

2,819,638

3,539,114

Solvency margin ratio

1,547.0%

1,852.0%

1,747.9%

2,060.5%

2,637.3%

Number of employees

5,250

5,253

5,372

5,599

5,871

Policy amount in force

30,007,828

31,152,672

32,434,587

33,537,084

34,598,244

71,40072,63373,30773,49972,348

Common stock
Number of shares outstanding
Total assets
Of which, separate account assets
Policy reserves
Loans

Policy amount in force for group annuities

Notes: 1. Policy amount in force equals the total of the fugures of individual life insurance, individual annuities, group life insurance
and group annuities.
2. Policy amounts for individual annuities are equal to the sum of annuity assets at the time annuity payments commence and policy reserves
after annuity payments commence.
3. The policy amount in force for group annuities is equal to the amount of outstanding policy reserve.

16

(2) Policy Reserve Calculating Methods and Ratios for Individual Life Insurance and Individual Annuities
For the year ended
March 31, 2009

Category

Calculating
methodFor the year ended
March 31, 2010

Pure death-protection insurance Net level premium reserve method Net level premium reserve method
Policies subject to
Net level premium reserve method Net level premium reserve method
Mixed insurance
standard policy reserve
Net level premium reserve method Net level premium reserve method
Pure endowment insurance
methodNet level premium reserve method Net level premium reserve method
Annuities
Pure death-protection insurance Net level premium reserve method Net level premium reserve method
Policies not subject to Mixed insurance
Net level premium reserve method Net level premium reserve method
standard policy reserve
Net level premium reserve method Net level premium reserve method
Pure endowment insurance
methodNet level premium reserve method Net level premium reserve method
Annuities

Ratio of "amount of the company's policy reserve (excluding contingency
reserve)" to "policy reserve required by regulatory standards"

100.0%

100.0%

Notes: 1. The calculating methods and the ratios are set for individual life insurance and individual annuities. The concept ofaccumulation method is not targeted at policy reserve for group life insurance and group annuities, so these insurance
policies are not included.
2. The ratio for policies to which the standard policy reserve method is applied is indicated in the method laid downin Notice No. 48 from the Ministry of Finance. The ratio for policies to which the standard policy reserve
method is not applied is indicated for accumulated reserve for claims and unearned premiums calculatedwith the net level premium reserve method.

17