【Presentation Material】

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
andSony Lifeʼs Preliminary MCEV
as of March 31, 2019Sony Financial Holdings Inc.
May 15, 2019

I am Kiyomiya from Sony Financial Holdings.
I would like to explain about consolidated financial results for FY2018 andSony Lifeʼs preliminary MCEV as of March 31, 2019 follwed by thispresentation material.

AGENDA
Consolidated Operating Results for the Fiscal Year Ended March 31, 2019
(FY2018)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)

P. 18

Dividend Forecast for FY2019

P. 21

Sony Lifeʼs Preliminary MCEV as of March 31, 2019

P. 23

Appendix

P. 26

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual 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. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to 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 in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Fiscal Year Ended March 31, 2019
(FY2018)

Highlights of Consolidated Financial Results
All three businesses steadily expanded their business scale.
On a consolidated basis, both ordinary revenues and ordinary
profit reached record high.
 At Sony Life, both ordinary revenues and ordinary profit grew
year-on-year due mainly to a steady rise in the policy amountin force.
 Consolidated adjusted ROE, an economic value-based profit
indicator, reached 6.7%.
Financial Resultsfor FY2018

We expect that all three businesses will continue to expand
their business scale, sustaining the growth trend.
On a consolidated basis, we anticipate increases in bothordinary revenue and ordinary profit..
 At Sony Life, we expect income from insurance premiums togrow, due to solid growth in the policy amount in force.
 Consolidated adjusted ROE is expected to be Approx. 6%.


Forecast of
Financial Resultsfor FY2019



Shareholder
Returns

In line with our medium-term dividend policy, for FY2019 we
expect to raise the dividend amount by ¥2.5 per sharecompared with FY2018, to ¥65.0, taking into overall accountsuch factors as the operating environment, growth in businessscale, and higher profit based on economic value. We aim tocontinue steadily increasing dividends going forward.
Copyright © Sony Financial Holdings Inc. All rights reserved.

4

I would like to explain highlights of consolidated financial results for
FY2018.
All three businesses steadily expanded their business scale, leading toreached record high in both ordinary revenues and ordinary profit on aconsolidated basis.
At Sony Life, both ordinary revenues and ordinary profit grew year-

on-year due mainly to a steady rise in the policy amount in force
even at the low interest environment.
Consolidated adjusted ROE, an economic value-based profit indicator,
reached 6.7%.

For FY2019, we expect that all three businesses will continue to expand
their business scale. On a consolidated basis, we anticipate increases inordinary revenue and ordinary profit.
At Sony Life, we expect income from insurance premiums to grow, due
to solid growth in the policy amount in force.

Consolidated adjusted ROE is expected to be Approx. 6%.
In line with our medium-term dividend policy, we make an overall
judgment when determining dividend amounts, emphasizing economic
value-based profit indicators.
As previously announced, for FY2019, we forecast dividends of ¥65.0 per
share, an increase of ¥2.5 from the planed dividends for FY2018.

Highlights of Consolidated Financial Results◆ Ordinary Revenues : Increased owing to increases in ordinary revenues from all thebusinesses: life insurance, non-life insurance, and banking businesses.
◆ Ordinary Profit︓Increased owing to increases in ordinary profit from all the abovebusinesses.
Ordinary Profit

Ordinary Revenues

1,503.6＋8.3%

1,629.1＋40.4%

93.8

66.8(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

Next, I would like to explain about consolidated financial results.
Ordinary revenues increased 8.3% year on year, to ¥1,629.1 billion.
Ordinary profit increased 40.4% year on year, to ¥93.8 billion.
Next, I would like to explain about operating performance of Sony Life.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓Grew due to higher insurance premiums owning mainly to a steadyrise in the policy amount in force.
◆ Ordinary Profit︓increased year on year due to an increase in profit on higher policies inforce, a recording of gains on sale of securities in the general account, a decline inprovision of policy reserves for products with higher surrenders, and an improvement in
net gains (losses) on derivative transactions to hedge market risks for available-for-salesecurities in the general account, which more than offset the effect of an impairment
loss relating to available-for-sale securities in the general account.
Ordinary Profit

Ordinary Revenues

1,351.0＋8.4%

1,464.2＋41.7%

79.8

56.3(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

This is highlights of operating performance of Sony Life.
Ordinary revenues grew 8.4% year on year, to ¥1,464.2 billion,
due to higher insurance premiums due mainly to a steady rise in
the policy amount in force.
Ordinary profit increased 41.7% year on year, to ¥79.8 billion,
due to an increase in profit on higher policies in force, a recording ofgains on sale of securities in the general account, a decline in provision ofpolicy reserves for products with higher surrenders,and an improvement in net gains (losses) on derivative transactions tohedge market risks for available-for-sale securities in the generalaccount, which more than offset the effect of an impairment loss relating
to available-for-sale securities in the general account.

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓Increased due to higher sales of family income insurance.
◆ Annualized Premiums from New Policies︓Increased due to higher sales of term life
insurance and variable annuities.
Number and Amount of New Policies（Individual life insurance + Individual annuities）

Annualized Premiums from New Policies（Individual life insurance + Individual annuities）
Annualized premiums from new policies
Of which, third-sector

New policy amount (JPY tn)
Number of new policies (Thousands of policies)+12.7%

513
4.95

609

87.9

540

78.1

6.15
5.28

+20.3%+16.3%(JPY bn)

FY201673.0

FY2017FY201815.7
FY2016

12.9+17.5％FY201715.2
FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

7（Left-hand graph）
New policy amount for the total of individual life insurance and individual
annuities increased 16.3% year on year, to ¥6,150.4 billion, due tofavorable sales of family income insurance.
In FY2018, new policy amount reached record high for the fiscal-year
period (12M).
The number of new policies increased 12.7% year on year,
to 609 thousand policies.
（Right-hand graph）
Annualized premiums from new policies increased 20.3% year on year, to¥87.9 billion, due to favorable sales of term life insurance and variableannuities.
Of which, the figure for third-sector products increased 17.5%
year on year, to ¥15.2 billion.

Operating Performance : Sony Life (Non-consolidated) (2)◆ Lapse and Surrender Rate︓Increased due to certain customers cancelling existing
policies, taking out new policies such as family income insurance since premiums wererevised in line with revisions of the standard mortality tables.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）

6.06
4.27

4.97
＋1.09pt（%）

FY2016FY2017FY2018*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.
Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Lapse and surrender rate was up 1.09 percentage points year on year, to6.06%.
The increase in the lapse and surrender rate was mainly due to certain
customers cancelling existing policies, taking out new policies such as
family income insurance since premiums were revised in line withrevisions of the standard mortality tables.

Operating Performance : Sony Life (Non-consolidated) (3)Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force (JPY tn)
Number of policies in force (Millions of policies)
+3.7%

7.56

7.30

（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

7.84
820.8

49.5

47.2

45.3

Annualized Premiums from Insurance in Force

889.3

848.8
＋4.8％

+4.9%

187.4

191.8

Mar. 17Mar. 18

+2.9％

197.5

(JPY bn)

Mar. 17Mar. 18

Mar. 19

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

9Sony Lifeʼs policy amount in force which reflects new policy amount andlapse and surrender amount, is shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities increased 4.9% from March 31, 2018,
to ¥49.5 trillion.
The number of policies in force increased 3.7% from March 31, 2018, to¥7.84 million polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 4.8% from March
31, 2018, to ¥889.3 billion.
Of which, the figure for third-sector products was up 2.9% from March
31, 2018, to ¥197.5 billion.

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Increased due to an increase in profit on higher policies in force anda decline in provision of policy reserve for products with higher surrenders.
Core Profit and Adjusted Core Profit
Core profit

Adjusted core profit+19.5% 97.2 97.4

83.8
76.2

Average Assumed Interest Rate andInvestment Yield for Core Profit

Reference

Investment yield for core profit
Average assumed interest rate

82.4
81.3

2.24

2.22

2.19

2.00

1.97

1.94

FY2016FY2017FY2018+18.2%（%）(JPY bn)

FY2016FY2017◆ Details of core profit(JPY bn)

FY2016FY2018FY2017FY2018

Positive spread

15.4

17.7

18.2

Provision of policy reserve forminimum guarantees forvariable life insurance (*)(7.8)(18.7)(18.3)

Adjusted core profit (**)

76.2

82.4

97.4

*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves
for minimum guarantees for variable life insurance)

Copyright © Sony Financial Holdings Inc. All rights reserved.

10Core profit increased 19.5% year on year, to ¥97.2 billion, due toan increase in profit on higher policies in force and a decline in provisionof policy reserves for products with higher surrenders.
Adjusted core profit, which subtracting positive spread and provision ofpolicy reserves for minimum guarantees for variable life insurance fromcore profit, increased 18.2% year on year, to ¥97.4 billion.

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in core profit and a recording of gains
on sale of securities in the general account.
Core Profit and Ordinary Profit
Core profit

83.8
60.1

Ordinary profit+19.5%

97.2

81.3+41.7%

56.3(JPY bn)

FY2016◆ Difference from core profit

79.8

FY2017FY2018(JPY bn)

FY2016FY2017FY2018Core profit

83.8

81.3

97.2

Capital gains (losses) excluding gains
or losses on hedges (*)

(0.4)

(9.0)

1.6

Gains (losses) on hedges of variable
life insurance(15.6)

(8.4)

(9.9)

Provision of contingency reserve (**)

(7.2)

(7.4)

(8.6)

Others

(0.1)

(0.1)

(0.4)

Ordinary profit

60.1

56.3

79.8

*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Provision of contingency reserve is described as negative amount.

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Ordinary profit increased 41.7% year on year, to ¥79.8 billion, due to anincrease in core profit and a recording of gains on sale of securities in thegeneral account.

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
＋22

4,933

4,942

4,974

Mar. 17

Jun. 17

Sep. 17

4,968

Dec. 17

5,142

5,135

5,147

5,164

5,106
+58

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

The number of Lifeplanner sales employees as of March 31, 2019, was
5,164, up 58 from December 31, 2018 and up 22 fromMarch 31, 2018.
Sony Life will work to expand its business scale through stringent
recruiting of Lifeplanner sales employees and further enhancing theirproductivity.
Next, I would like to explain about operating performance of Sony
Assurance.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues︓Rose due to an increase in net premiums written for mainstay
automobile insurance.
◆ Ordinary Profit︓Up due to a lower expense ratio and higher revenues, despite a risein the loss ratio stemming from natural disaster damage and the recording ofadditional policy reserves for a certain product.
Ordinary Profit

Ordinary Revenues
110.0

＋4.6%

115.1

6.5

＋4.9%

6.8

(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Sony Assurance reached record high in both ordinary revenues andordinary profit.
Ordinary revenues rose 4.6% year on year, to ¥115.1 billion, due to anincrease in net premiums written for mainstay automobile insurance.
Ordinary profit up 4.9% year on year, to ¥6.8 billion, due to a lower
expense ratio and higher revenues, despite a rise in the loss ratio
stemming from natural disaster damage and the recording of additional
policy reserves for a certain product.

Operating Performance : Sony Assurance (1)◆Net Premium Written︓Increased due to stable sales of automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others100.2

Adjusted ordinary profit

Ordinary profit

Personal accident insurance

113.1

108.2

10.5

10.0

＋4.5%

＋5.6%

8.1

6.8

6.5
4.9

＋4.9%

xx
(JPY bn)

FY2016FY2017FY2018*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)（Reference) Provision for catastrophe reserve

FY2016FY2017FY2018

Note: Most of personal accident insurance is medical insurance.

（JPY bn）

Provision for catastrophe reserve

FY2016

3.1

FY2017FY20183.4

3.6*Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14(Left-hand graph)
Net premiums written increased 4.5% year on year, to ¥113.1 billion due
to stable sales of automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amount of provision(reversal) for catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥10.5 billion.

Operating Performance : Sony Assurance (2)◆ Earned/Incurred (E.I.) Loss Ratio︓Up due to natural disasters.
◆ Net Expense Ratio︓Down due mainly to a decrease in system-related expenses.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

89.1

89.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）

Net loss ratio

Net expense ratio

90.6

Reference

85.8

Net expense ratio

84.4(0.1pt)62.3＋0.7pt

61.3

60.7

85.1

＋0.6pt

57.3

57.5

55.9

28.3

28.5

27.8

FY2016FY2017FY2018＋1.4pt(0.7pt)(0.7pt)

28.3

28.5

27.8

FY2016FY2017FY2018（%）

Notes:
E.I. loss ratio = (Net losses paid + Provision for reserve foroutstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]（%）

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written
Copyright © Sony Financial Holdings Inc. All rights reserved.

15(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio was up 0.6 percentage points year
on year, to 61.3%, due mainly to natural disasters.
The net expense ratio was down 0.7 percentage points year on year, to27.8%, due mainly to a decrease in system-related expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio
was down 0.1 percentage points year on year, to 89.1%.
(Right-hand graph)
The net loss ratio was up 1.4 percentage points year on year,
to 57.3%.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense
ratio) was up 0.7 percentage points year on year, to 85.1%.
Next, I would like to explain about operating performance of Sony Bank.

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓Rose due mainly to increases in interest income
on investment securities and on loans in line with a growing balance of mortgage loans.

Ordinary Profit

Ordinary Revenues

39.9＋15.2%

46.0

7.1＋33.6%

9.5(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Sony Bankʼs consolidated financial results reached record high in bothordinary revenues and ordinary profit.
Ordinary revenues increased 15.2% year on year, to ¥46.0 billion, due toincreases in interest income on investment securities andon loans in line with a growing balance of mortgage loans.
Ordinary profit increased 33.6% year on year, to ¥9.5 billion,
for the same reasons as ordinary revenues.

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due mainly to an increase in newly accumulated funds via the increased
number of accounts.
・Foreign Currency Deposits︓Increased due mainly to the launch of the “Set Time Deposits Program,”
which simultaneously employs yen and foreign currency time deposits.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
35,000Mortgage loans

Investment trusts
Foreign currency deposit
Yen deposits
Number of accounts (Millions of accounts)
+0.12
1.47

30,00025,00020,0001.24

2,227.1
114.1
348.0

1.35

2,343.0

2,483.3

87.1

1,596.3
70.7

1,744.1

53.7**Corporate loansof ¥35.4 billion,
Card loans of¥18.3 billion.

+147.7

124.3

123.7
404.6

1,539.6

Others+140.2419.6

100

15,0001,690.3

10,0001,764.9

1,814.7

1,452.4

1,939.3

1,525.5

5,000(JPY bn)00Mar. 17Mar. 18

Mar. 19(JPY bn)

Mar. 17Mar. 18

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

17(Left-hand graph)
As of March 31, 2019, customer assets amounted to ¥2,483.3 billion, up¥140.2 billion from March 31, 2018.
Of this amount, the yen deposit balance amounted to ¥1,939.3 billion, up¥124.6 billion from March 31, 2018, due mainly to
an increase in newly accumulated funds via the increased number ofaccounts.
The yen-denominated balance of foreign currency deposits amounted
to ¥419.6 billion, up ¥15.0 billion from March 31, 2018, due mainly
to the launch of the “Set Time Deposits Program,” which
simultaneously employs yen and foreign currency time deposits.
(Right-hand graph)
The loan balance as of March 31, 2019 expanded ¥147.7 billion fromMarch 31, 2018, to ¥1,744.1 billion, due to a steady increase inmortgage loans.
This conclude the explanation of the results of three companies.

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

Forecast of Consolidated Financial Results for FY2019
Ordinary revenues, ordinary profit and profit attributable to owners of the parent are expected to increase
For FY2019, we expect stable business growth to continue in all the businesses◆Life insurance businessWe expect ordinary revenues to increase from FY2018, due mainly to a steady rise in insurance premium revenues.
We also expect ordinary profit to rise in line with growth in the policy amount in force, despite the increased provision ofpolicy reserves stemming from a decrease in surrenders. Also, although we booked an impairment loss relating to availablefor-sale securities in the general account in FY2018, no equivalent loss is included in our forecast for FY2019.
◆Non-life insurance businessWe expect ordinary revenues to increase from FY2018, in line with growth in net premiums written, primarily for automobile
insurance. We expect ordinary profit will remain flat. We anticipate higher revenues from automobile insurance, andanticipate the impact of a temporary accumulation of policy reserves for a certain product in FY2018 will disappear.
At the same time, however, we expect the provision for underwriting reserves to rise in line with an increase in theacquisition of fire insurance policies.
◆Banking businessWe expect ordinary revenues to rise year on year due to stable business growth stemming from the steady ongoingaccumulation of mortgage loans and the strengthening of the foreign currency business.
Although we anticipate a rise in gross operating profit in line with revenue growth, we expect ordinary profit to decrease
year on year due to a rise in operating expenses rise.
（JPY bn）
Ordinary revenues
Life insurance business
Non-life insurance businessBanking business

FY2018（Actual）

FY2019（Forecast）

Change1,629.1

1,690.0

1,464.3

1,520.5

+3.7%
+3.8%

115.1

121.2

+5.3%

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Ordinary profit

Banking businessProfit attributable to owners of the parents

Copyright © Sony Financial Holdings Inc. All rights reserved.

19

Next, I will explain our forecast of consolidated financial results for
FY2019.
For FY2019, stable business growth is expected to continue in all thebusinesses: life insurance, nonlife insurance and banking businesses.
Ordinary revenues are expected to increase in all the businesses.
Although ordinary profit for the banking business is expected to decrease
and the non-life insurance business is expected to be flat year on year,
overall ordinary profit is expected to increase,
due to an increase in the life insurance business.
Profit attributable to owners of the parent is expected to increasesimilarly to the ordinary profit.

Analysis on Ordinary Profit

+4.0

+0.1

(0.9)

(1.0)

98.0

Others**Baking business

Non-life business

OthersIncrease in profit
owing to growing
policy amount inforce

Increase in provision ofpolicy reserves owing tolower surrender

93.8

(1.0)
Recording a impairment loss
relating to available-for-salesecurities in FY2018

+7.0

(4.0)

＋6.0
Life insurance business*(JPY bn)

FY2018(consolidated)

FY2019(Forecast）*Assumption
・Market environment︓At the level as of Mar. 19
・Gains on sale of securities : Approx. ¥4.0 billion**Others include total of profit and loss of SFH, the nursing care business,and the venture capital business as well as intersegment adjustment.

Copyright © Sony Financial Holdings Inc. All rights reserved.

20

I would like to explain analysis on ordinary profit for the forecast of
consolidated financial results for FY2019.
In the life insurance business, we expect ordinary profit to increase inline with growth in the policy amount in force, despite the increased
provision of policy reserves stemming from a decrease in surrenders.
Also, although we booked an impairment loss relating to available-forsale securities in the general account in FY2018, no equivalent loss is
included in our forecast for FY2019.
Therefore, we expect ordinary profit to increase in FY2019 consolidated
financial forecast.

Dividend Forecast for FY2019

Dividend Forecast for FY2019◆ Medium-term Dividend Policy︓Unchanged
We aim for steady increases in dividends in line with earnings growth over the medium tolong term, while securing sufficient internal reserves to ensure the financial soundness ofGroup companies and to invest in growth fields. Management will examine earnings growthover the medium to long term by placing more importance on economic value-based profit
indicators that are more suitable for evaluating the growth of the life insurance business,in addition to statutory profit. Furthermore, management will determine specific dividend
amounts for each year by taking into account a comprehensive range of factors surrounding
the Group.
◆ Dividend Results／Forecast
Dividends for FY2018 are expected to be ¥62.5 per share.
For FY2019, after considering the business environment, the expansion of the Groupʼsbusiness volume and the level of economic value-based profit growth, we forecast
dividends of ¥65.0 per share, an increase of ¥2.5 from the planned dividends of FY2018.
Consolidated adjusted ROE, an economic value-based profit indicator, is expected to be
Approx. 6% for FY2019.
FY2015
Dividend per share¥55.0

FY2016¥55.0

FY2018（Plan）FY2017¥60.0

FY2019（Forecast）

¥62.5

¥65.0

*Please refer to page 27-29 for details of consolidated adjusted ROE.
Copyright © Sony Financial Holdings Inc. All rights reserved.

As previously announced, for FY2019, we forecast dividends of¥65.0 per share, an increase of ¥2.5 from the planed dividends
for FY2018.
Consolidated adjusted ROE, an economic value-based profit indicator,
was 6.7% for FY2018, and expected to be Approx. 6% for FY2019.

22

Sony Lifeʼs Preliminary MCEV
as of March 31, 2019
Please keep in mind that the validity of these calculations has not been verified by outside specialists as of March 31, 2019.
The calculation of MCEV as of March 31, 2019, in accordance with the MCEV principles and verified by outside specialists,
is scheduled to be announced on May 20, 2019.
A part of the calculations of MCEV adopted simplified method for that as of December 31, 2018.
*Also in this part, figures less than the indicated unit have been truncated from March 31, 2019.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of March 31, 2019 increased ¥55.6 billion from December 31, 2018, due mainly to anassumption changes and an acquisition of new policies, despite a decrease in interest rates inJapanese yen.
◆ New Business Value / New Business Margin
・New business margin for FY18.4Q(3M) was down 2.2pt from FY18.3Q(3M), due to changes in productmix(including premium revisions in January 2019) and a decrease in interest rates.
・New business value for FY18.4Q(3M) was ¥23.1 billion, due to a steady acquisition of new policies.
（JPY bn）
MCEV

Mar. 18

Dec. 18

Mar. 19

ChangefromMar. 18

ChangefromDec. 18

1,633.1

1,664.6

1,720.2

+87.1

+55.6

Adjusted net worth

1,786.1

1,824.0

2,195.7+409.6+371.7

Value of existing
business(152.9)(159.4)(475.5)(322.5)(316.0)（JPY bn）

FY17.4Q(3M)

FY18.1Q(3M)

FY18.2Q(3M)

FY18.3Q(3M)

FY18.4Q(3M)

FY18.4Q(12M)

New business value

21.1

21.9

22.6

23.6

23.1

91.3

New business margin

6.1%

7.1%

6.9％

7.3％

5.0%

6.4％

Notes:
1. Calculated MCEV as of December 31, 2018 by using updated mainly economic assumptions and lapse and surrender rates from March 31, 2018.
2. New business value and new business margin are calculated accumulating new business value for each month based on economic assumptions at theend of each month. The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised in March 31,
2018. For details of the revision in the insurance risk measurement method and others, please refer to the Presentation Materials “Consolidated Financial
Results for the Fiscal Year Ended March 31, 2018 and Sony Lifeʼs Preliminary MCEV as of March 31, 2018.”*Please refer to page 42-45 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

24Sony Lifeʼs MCEV as of March 31, 2019 was ¥1,720.2 billion,up ¥55.6 billion from December 31, 2018, due mainly toan assumption changes and an acquisition of new policies,
despite a decrease in interest rates in Japanese yen.
New business margin for FY18.4Q(3M) was 5.0%,
down 2.2 percentage points from FY18.3Q(3M), due to changes in
product mix (including premium revisions in January 2019)
and a decrease in interest rates.
However, new business value for FY18.4Q (3M) was almost at the samelevels as for FY18.3Q (3M), amounted to ¥23.1 billion,
due to a steady acquisition of new policies.

Reconciliation Analysis of Sony Lifeʼs MCEV

Numerators ofcore ROEV+106.4+91.3

1,606.9

1,720.2

New business
value

Dividend
payments toshareholder

Assumption changes(26.2)

Expected existing
business contribution

1,633.1

+15.0

+6.9

(JPY bn)

MCEV
as of Mar. 18

MCEV
as of Mar. 18(after dividends paid)

MCEV
as of Mar. 19

Note: Details on assumption changes : Insurance-related assumption changes:+¥69.6 billion, economic variances changes :(62.6) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs MCEV as of March 31, 2019 was ¥1,720.2 billion,up ¥87.1 billion from March 31, 2018, reflecting contribution of¥106.4 billion numerators of core ROEV, consisted of new business value
and expected existing business contribution.
This conclude the explanation.
Thank you.

25◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted ROE

FY2017FY2018

Consolidated Adjusted ROE

6.1％

6.7%

(Sony Life) Core ROEV

5.9％

6.4%

(Sony Assurance) Adjusted ROE

16.1％

15.2%

(Sony Bank) ROE

5.5％

7.3%

Note: The figures for FY2017 excluded the impact of the revision in the insurance risk measurement method and others for Sony Life.

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn)
Adjusted profit(consolidated)
Sony Life(non-consolidated)

FY2017

98.8(JPY bn)

FY2017
70.4

New business value *1
Expected existing business
contribution *1

16.3

Adjusted profit

86.7

Sony Assurance(JPY bn)

FY2017FY2018120.4
FY2018
91.3
15.0
106.4
FY2018Adjusted capital (Denominator）
Sony Financial Group(JPY bn)（consolidated）

FY2017FY2018Adjusted capital(consolidated)

1,607.6

1,801.8

FY2017FY2018Sony Life(non-consolidated)(JPY bn)①MCEV as of the beginning of
the fiscal year

1,441.0

1,633.1

23.1

26.2

③MCEV as of the end of theperiod *2

1,536.5

1,720.2

Adjusted capital（①－②＋③）/２

1,477.2

1,663.5②Dividends paid

Net income

4.8

4.9

Provision amount forcatastrophe reserve (after tax)

2.4

2.6

33.1

34.7

Provision amount for reservefor price fluctuations (after tax)

①The average amount of net
assets during the period

0.0

0.0

Adjusted profit

7.3

7.6

②The average amount ofcatastrophe reserve (aftertax) during the period

15.0

17.7

③The average amount ofreserve for price fluctuations(after tax) during the period

0.1

0.1

Adjusted capital （①＋②＋③）

45.2

50.5

Sony Bank(consolidated)(JPY bn)

Profit attributable to ownersof the parent

FY20174.7

FY2018
6.3

Sony AssuranceSony Bank(consolidated)(JPY bn)(JPY bn)

Adjusted capital（The averageamount of net assets during
the period）*1. Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY2018.
*2. Please keep in mind that the validity of these calculations has not been verified by outside specialists.
Note: The figures for FY2017 excluded the impact of the revision in the insurance risk measurement method and others for Sony Life.

FY2017FY201785.1

FY2018FY2018
87.6

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Update of Major KPIs

Sony Life
Policy Amount in Force *1

45.3

47.2

49.5

（JPY tn ）Mar. 17

99.0

107.0

Mar. 19

Retail Balance*2

112.1
3.7

3.9

4.2

（JPY tn）（JPY bn）

Mar. 18

Sony Bank

Sony Assurance
Direct Premiums Written

FY2016FY2017FY2018Mar. 17Mar. 18

Mar. 19*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, securities brokerage, mediated discretionary investment contracts and personal loans
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Financial Soundness（%）

Sony Life (non-consolidated)
Solvency margin ratio

Mar. 18

Mar. 19

Change from
Mar. 18

2,624.3%

2,590.5%(33.8pt)

Sony Assurance
Solvency margin ratio

782.1%

813.0%+30.9pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.45%

9.58％(0.87pt)（%）

Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）

Mar. 18
0.12%

Mar. 190.12%

Change from
Mar. 18+0.00pt

Note: Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 10% of the amount of new mortgage loans for FY2018
Sony Life accounts for 17% of the balance of mortgage loans as of March 31, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 5% of new automobile policies for FY2018※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)

FY2017FY2018¥73.0 billion¥87.9 billion
Yen whole
life 3%

Yen whole
life 6%

Savings typeproducts
29%

U.S. dollardenominatedsingle-premium
whole life
insurance 6%
U.S. dollardenominatedWhole life
13%

Protection-type（term-life）
47％

Saving typeproducts
27%

U.S. dollardenominatedwhole life
13%

U.S. dollardenominatedsingle- premium
whole life
insurance 7%

Protection-type（term-life）
50％

Note: Savings type products = Endowment・Annuities・Educational endowment insurance
Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)

FY2017FY2018Japanesestocks0.2%

Japanesestocks0.5%Foreign bonds

Foreign bonds

18.5%

23.5%
JGBs

Japanese corporate

55.1%

bonds
25.9%

社債
11.9%

Japanese
corporate
bonds
社債

JGBs
63.6%

25.9%
12.7%

国債
85.3%
Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 18

Mar. 19

Amount%Amount%Japanese bonds(including JGBs)

7,281.1

86.3%

7,745.3

85.3%

Japanese stocks

38.4

0.5%

28.6

0.3%

Foreign bonds

366.5

4.3%

542.1

6.0%

Foreign stocks

30.3

0.4%

22.5

0.2%

Money held in trust

270.5

3.2%

269.3

3.0%

Policy loans

189.4

2.2%

198.3

2.2%

Real estate*

92.3

1.1%

90.8

1.0%

Cash and call loans

40.8

0.5%

61.9

0.7%

Others

129.1

1.5%

120.2

1.3%

8,438.8

100.0%

9,079.4

100.0%（JPY bn）

Total◆ Bond duration
Mar. 17 : 21.3 years
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years◆ Investment in the money held in trustis mainly into Japanese bonds.
◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 17 : 90.1%
Mar. 18 : 89.5%
Mar. 19 : 88.3%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY2017

Cash and deposits

FY2018Change00(49.3%)

Japanese bonds(including JGBs)

125,271

129,930＋3.7%

Japanese stocks

566

556

(1.7%)

13,975

19,906＋42.4%

621

340(45.3%)

Loans

6,610

6,828

＋3.3%

Real estate

10,2858,831(14.1%)

395

543＋37.4%

157,727

166,937＋5.8%

Foreign securities
Other securities

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY2017FY2018（JPY mn）
Capital gains

FY2017FY201827,357

27,847

Losses on trading securities, net

8144

Gains on sale of securities…(3)

0

6,107

Losses on sale of securities…(3)034Foreign exchange gains, net－

13,455－

13,331

9,894

－

9,894

－

(17,463)(8,284)

Capital losses

Devaluation losses on securities…(4)

－

4,026

11,403

13,925Losses on hedges of variable life
insurance…(1)

8,424

9,983

Losses on hedges of available-for-salesecurities…(2)

4,350

(246)

(2,004)

4,072

15,280－15,465

－

664

9,716

－

9,716

Losses on derivatives, net

Losses on U.S. dollar-denominatedinsurance…(5)Foreign exchange losses, net
Losses on U.S. dollar-denominatedinsurance…(5)Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(5)9,894

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains inseparate account）…(5)Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(5)Net capital gains (losses)

19,562

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

●Capital Gains (Losses) on Main Items, Net Amounts
FY2017FY2018(1) Gains (Losses）on hedges of variable life
insurance(8,424)(9,983)(2) Gains (losses）on hedges ofavailable-for-sale securities(4,350)246（JPY mn）(3) Gains (losses) on sale of securities

0

6,072

(4) Devaluation losses on securities－(4,026)(3,566)(457)(5) Gains (losses) on U.S. dollardenominated insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4
1,674.7
1,485.0 1,435.5

1,457.7
1,260.0

1,189.0

1,050.7

1,115.8 1,114.8

1,555.1

1,214.7（JPY bn）

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

23.9
20.5

19.5

18.2
15.3

（JPY bn）

4.1

3.9

3.1

4.4

16.1

16.2

3.1

2.8

3.3

21.1

3.6

18.7

19.2

18.9

3.3

3.9

3.8

4.0

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1
14.1
12.2
10.1

4.9
（JPY bn）(0.1)

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q
Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Sony Lifeʼs ESR
 The risk amount based on economic value as of March 31, 2019 was ¥742.3 billion, remained flat compared to the as ofDecember 31, 2018, due to an increase in insurance risk offsets the decrease in interest rate risk resulting drop in interest rates.
 ESR as of March 31, 2019 was 235%, up 10pt from December 31, 2018 due to an increase in MCEV.
（JPY bn）

Mar. 18

Dec. 18

Mar. 19

Insurance risk

497.5

513.9

547.3

Market-related risk

380.6

385.2

332.5

Of which, interest rate risk

275.3

264.1

202.1

Operational risk

31.0

31.8

33.4

Counter party risk

2.5

2.8

3.0

(181.9)(185.9)(174.0)

729.7

748.0

742.3

Variance effect
The risk amount based on
economic value（JPY bn）

MCEV + Frictional costs
ESR

Mar. 18

Dec. 18

Mar. 19

1,655.8

1,685.7

1,743.7

227%

225%

235%

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on JGB Yields (Par rate)
10 years
1.20%

20 years
30 years

1.00%

40 years

0.80%

0.60%

0.40%

0.20%

0.00%
(0.20%)△0.20%

Mar. 18 Apr. 18 May. 18 Jun. 18 July. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan. 19 Feb. 19 Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Trend on Risk-free Rate (Japanese yen/Par rate)
1.80%
1.60%

Mar. 18

1.40%

Dec. 18

1.20%

Convergence
period:20 yearMar. 19

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
(0.20%)△0.20%(0.40%)△0.40%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
3.40%

3.20%

20 years
30 years

3.00%

2.80%

2.60%

2.40%

2.20%

2.00%
Mar. 18 Apr. 18 May. 18 Jun. 18 July. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan. 19 Feb. 19 Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Trend on Risk-free Rate (U.S. Dollar /Par rate)

3.30%

Mar. 18
Convergence
period: 30 year

Dec. 18
3.10%

Mar. 19

2.90%

2.70%

2.50%

2.30%

2.10%

1.90%

1.70%

1.50%
1 yearLast liquid point:
30 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Consolidated︓Summary Financial Statements（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit

FY2018Change1,351.2

1.464.3+113.1

＋8.4%

54.1

78.2

+24.0

+44.4%

110.0

115.1

+5.0

+4.6％

6.5

6.8

+0.3

+4.9%

39.9

46.0

+6.0

+15.2%

7.1

9.5

+2.4

+34.3%+55.2%

2.3

3.6

+1.3

(1.0)

(0.8)

＋0.1

ー

1,503.6

1,629.1＋125.5+8.3%

Ordinary profit

66.8

93.8

+27.0

+40.4％

Profit attributableto owners of theparent

51.8

62.0

＋10.1

＋19.6%

Ordinary revenues
Ordinary profit
Ordinary revenues

Consolidated

FY2017*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Proud Life Inc., Sony Financial Ventures Inc. and SFV・GB L.P. are included in the scope of
consolidation from FY17.2Q, FY18.2Q, and FY18.4Q, respectively.
(Note) Comprehensive income : FY2017: ¥52.2 billion, FY2018: ¥57.4 billion（JPY bn）
Consolidated

Net assets
Total assets

Mar. 18

Mar. 19

Change from Mar. 18

625.4

656.8

+31.4

+5.0%

12,401.4

13,468.2＋1,066.7+8.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）
Ordinary revenues
Income from insurance
premiums

FY2017FY2018

1,351.0
1,059.2

1,464.2
1,136.1（JPY bn）

Change+113.1
+76.8

+8.4%
+7.3%

243.2

278.9

+35.6

+14.6%

Interest income
and dividends

157.7

166.9

+9.2

+5.8%

Gains on sale ofsecurities

0.0

6.1

+6.1

ー

Foreign exchange
gains, net

ー

13.4

+13.4

ー

Investment income

Gains on separate
accounts, net

80.9

87.9

+7.0

＋8.7%

1,294.7

1,384.4

+89.6

+6.9%

Insurance claims andother payments

436.5

457.2

+20.7

+4.7%

Provision for policy
reserves and others

638.3

704.7

+66.4

+10.4%

Investment expenses

33.1

24.6

(8.4)

(25.6%)

ー

4.0

+4.0

ー

11.4

13.9

+2.5

+22.1%

Ordinary expenses

Devaluation losses
on securities
Losses onderivatives, net
Foreign exchange
losses, net

15.2

ー

(15.2)(100.0%)

139.9

146.9

+7.0

+5.0%

Ordinary profit

56.3

79.8

+23.4

+41.7％

Gains on disposal of fixed
assets13.2

ー(13.2)(100.0%)Net income

45.1

49.6

＋4.4

+9.9%

Operating expenses

Mar. 18

Mar. 19

Change from Mar. 18

Securities

8,765.9

9,523.8+757.9

Policy reserves

8,566.0

9,268.4＋702.3

+8.2%

492.7

513.9

+21.1

+4.3%

124.9

122.7

(2.2)

(1.8%)

9,567.6

10,380.1＋812.4+8.5%

1,128.8

1,300.7＋171.8+15.2%Net assets
Net unrealized gains
on other securities
Total assets
Separate accountassets（JPY bn）
Gains from investment,net (General account)

FY2017129.2

FY2018
166.3

+8.6%

Change＋37.1+28.7%

Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)

Direct Premiums Written *Medical insurance is included in personal accident.

（JPY bn）

Ordinary revenues

FY2017110.0

FY2018
115.1

+5.0

+4.6%

Underwriting
income

108.3

113.1

+4.8

+4.5%

Investment
income

1.7

1.8

+0.1

+7.3%

103.5

108.2

+4.6

+4.5%

74.4

78.4

+4.0

+5.4%

Ordinary
expenses
Underwriting
expenses
Operatinggeneral andadministrative
expenses
Ordinary profit
Underwriting
incomeNet income（JPY mn）

Change

29.7

6.5

6.8

+0.6

+2.3%

Personal accident
Voluntary automobile

Total

+4.9%

4.8

5.0

＋0.1

+3.8%

4.8

4.9

+0.1

+3.7%

Mar. 18

Mar. 19

Change from
Mar. 18

Underwriting
reserves

117.0

127.8

+10.7

+9.2%

Net assets

33.1

34.7

+1.6

+4.9%

Total assets

204.3

219.6

+15.2

+7.5%

ー

ー

+198.8%
ー

8,679

8,823

+1.7%

98,123

102,758

＋4.7%

ー

ー

ー

107,008

112,198+4.8%

Net Premiums Written（JPY mn）

FY2017FY2018Change

16

265

ー

0

(0)

ー

Marine

8,887

8,872

(0.2%)

Voluntary automobile

97,880102,458+4.7%

Compulsory
automobile liability

1,469

1,505

+2.4%

108,254

113,101

+4.5%

Total

Net losses paid
（JPY mn）（JPY bn）

Change616

Compulsory
automobile liability

Personal accident+0.3

FY2018206

MarineFire

29.0

FY2017Fire

FY2017FY2018Change

Fire

6

15

+126.8％Marine2

10+291.0%+11.7%

2,692

3,009

Voluntary automobile

48,46452,223+7.8%

Compulsory
automobile liability

1,316

1,350

＋2.6%

52,48256,608+7.9%

Personal accident

Total

Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY2017FY2018ChangeOrdinary revenues

39.9

46.0

+6.0

+15.2％

Ordinary profit

7.1

9.5

+2.4

+33.6%

Profit attributable toowners of the parent

4.7

6.3

+1.6

+34.6%◆ Non-consolidated◆ Balance of Securities by Credit Rating（Non-consolidated）

FY2017FY2018

Ordinary revenues

36.2

41.7

+5.4

+15.0%FY2017FY2018Gross operating profit

21.4

24.5

+3.0

+14.4%

AAA

232.4

296.6

+64.2

+27.7%Net interest income

20.6

23.3

+2.6

+12.9%

AA

109.8

77.3

(32.4)(29.6%)Net fees andCommissions

(2.9)

(2.2)

+0.7

－

A

306.8

288.0

(18.7)(6.1%)

BBB

18.1

24.4

+6.2

+34.4%（JPY bn）

Net other operating
incomeGeneral andadministrative expenses

3.7

3.4

Change(0.2)(7.3%)

15.5

15.9

+0.3

Net operating profit

5.9

8.5

＋2.6

+44.6%

Ordinary profit

6.5

8.6

+2.1

+32.6%Net income

4.4

6.0

+1.5

+34.6%（JPY bn）
Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets

Mar. 18

Mar. 19+2.5%（JPY bn）

ChangeOthers

7.1

10.0

+2.9

+41.0%

Total

674.2

696.4

+22.1

＋3.3%

Change from
Mar. 18

85.7

87.2

+1.5

+1.8%

6.0

3.9

(2.0)

(34.2％)

2,635.0

2,860.9+225.8+8.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

49

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income on investment securities and on loans in line with a growing
balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions（JPY bn）

FY2017＜Reference＞

ChangeFY2018

21.3

24.4

+3.1

+14.5％

23.0

25.5

+2.5

+11.1％

(2.5)

(1.7)

+0.7

ー

Net other operating
income*3

0.9

0.7

(0.2)

(23.6％)

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

20.4

23.7

+3.3

+16.2％

Operating expenses andother Expenses ③

15.5

15.9

+0.4

+2.9％

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

4.9

7.8

+2.8

+58.0％

Gross operating profit*1

Net interest income
Net fees andcommissions*2①②■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses 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), mainly consistsof profits and losses for bond and derivative dealing transactions.
■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on investment

Interest Spread(Managerial Accounting Basis）
Yield on financing

1.13
0.91

0.22

Interest spread

1.20+0.02pt

0.93

0.27

（%）

FY2017FY2018

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

50

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500