Presentation Materials

Consolidated Financial Results
for the Three Months Ended June 30, 2009

Sony Financial Holdings Inc.
August 11, 20090

Disclaimers:
These presentation materials contain 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 performance andthat 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,” “possibility” that describe future operating
activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the SFH Group, based on information that is currently available to it. As such, theseforward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially fromthe 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 not constitute or form part ofany 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.

1

Disclaimer

1Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2009
(Billions of yen)

Ordinary revenues+15.4%

Ordinay profit

248.1

Life insurance
business
Non-life
insurancebusiness

215.0

Bankingbusiness

21.9+57.2%

Corporate andelimination

FY09.1Q

Ordinary
revenues

190.9

223.2

+32.3

+16.9%

Ordinary profit

12.3

20.7

+8.3

+67.5%

Ordinary
revenues

15.7

17.4

+1.7

+11.3%

Ordinary profit

0.4

0.9

+0.4

+91.5%

Ordinary
revenues

8.6

7.6

-0.9

-11.0%

Consolidated

ChangeOrdinary profit

10

0.2

-0.7

-75.7%

Ordinary
revenues

-0.2

-0.3

-0.0

－

Ordinary profit

13.9

FY08.1Q

FY08.1Q(Billions of yen)

0.0

0.0

-0.0

-50.7%

Ordinary
Revenues

215.0

248.1

+330

+15.4%

Ordinary profit

13.9

21.9

+7.9

+57.2%Net income

7.8

12.5

+4.6

+59.7%

FY09.1Q
Consolidated

09.6.30

Change from09.3.31(Billions of yen)

08.6.30

09.3.31

Total assets

5,130.8

5,313.6

5,452.7+139.0+2.6%

Net assets

237.4

204.8

231.1

+26.2

+12.8%

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

2

During the three months ended June 30, 2009, consolidated ordinary
revenues grew 15.4% compared with the same period of the previous
fiscal year, to ¥248.1 billion. By segment, ordinary revenues from the life
insurance business and the non-life insurance business rose 16.9%, to¥223.2 billion, and 11.3%, to ¥17.4 billion, respectively, while those of thebanking business declined 11.0%, to ¥7.6 billion.
Consolidated ordinary profit increased 57.2% year on year, to ¥21.9 billion.
By segment, ordinary profit from the life insurance business and the nonlife insurance business rose 67.5%, to ¥20.7, and 91.5%, to ¥0.9 billion,
respectively, whereas ordinary profit from the banking business decreased
75.7%, to ¥0.2 billion.
As a result, consolidated net income increased 59.7% year on year, to¥12.5 billion.

2

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2009
 Life insurance： Ordinary revenues increased year on year, due to higher

income from insurance premiums associated with an increased policy amountin force, as well as increases in investment income boosted by a relatively
favorable financial market environment. Ordinary profit rose due to increased
insurance premiums, reversal of the policy reserve for minimum guarantee forvariable life insurance and higher gains from investment, net, on generalaccount assets.
 Non-life insurance: Ordinary revenues and ordinary profit increased year on
year, owing mainly to increases in net premiums written, reflecting a growing
number of its mainstay automobile insurance policies and a decline in the net
expense ratio.
 Banking business: Ordinary revenues and ordinary profit decreased year on
year, owing mainly to decreases in net other operating income, a part of which
offset increases in net interest income, bolstered primarily by the growing loanbusiness.
 Consolidated ordinary revenues, ordinary profit, and net income grew year on
year, amounted to ¥248.1 billion, up 15.4%; ¥21.9 billion, up 57.2%; and ¥12.5
billion, up 59.7%, respectively.

3

Highlights of each business segment are shown here.

3

Highlights of Operating Performance:
Sony Life (Non-Consolidated)
Ordinary profit

190.8

FY08.1Q

FY09.1Q

190.8

223.2

+32.3

Income from insurance premiums

162.5

165.9

+3.3

+2.1%

Investment income

27.5

56.5

+28.9

+105.3%

Interest income and dividends

12.7

15.7

+2.9

+23.3%

Gains on sale of securities

2.9

6.6

+3.6

+121.1%(Billions of yen)

Ordinary revenues

223.2(Billions of yen)

+17.0%

Ordinary revenues

Gains on separate accounts, net

7.2

28.8

+21.5

+296.4%

202.4

+239

+13.4%

Insurance claims and other payments

60.9

66.8

+5.9

+9.7%

Provision for policy reserve and others

89.4

103.2

+13.7

+15.4%

Investment expenses

2.6

6.2

+3.5

+133.7%

0.0

3.6

+3.5

+8,463.0%-100.0%Ordinary expenses

12.3

Losses on sale of securities

FY08.1Q

FY09.1Q

Sony LifePLOrdinary revenues and ordinary profit increased year onyear.
Income from insurance premiums Increased due to anincreased policy amount in force.
Gains from investment, net, rose in a relatively favorable
financial market environment.
BSTotal net assets grew, owing to increases in net income
and improved net unrealized gains on other securities,
boosted by a relatively favorable financial market
environment.
Securities increased primarily in ultralong-term bonds.

Devaluation losses on securities
Operating expenses

Ordinary profit
Net income(Billions of yen)

08.6.30

0.4

－

-0.4

22.7

23.1

+0.3

+1.5%

12.3

20.7

+8.3

+68.0%+68.3%

7.0

11.8

+4.7

09.3.31

09.6.30

Change from 09.3.31

Securities

2,428.3

2,819.6

2,958.4+138.7

Policy reserve

3,462.6

3,592.3

3,694.8+102.4+2.9%

Total net assets

168.7

140.7

158.8

+18.0

+12.8%+330.3%Net unrealized gains/losses onother securities

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

+17.0%

178.5

20.7+68.0%

ChangeSeparate account assets

+4.9%

58.8

4.0

17.2

+13.2

3,724.5

3,810.9

3,918.9+108.0

+2.8%

336.8

275.1

312.9

+37.8

+13.7%

4Highlights of Sony Life’s operating performance (on a non-consolidated basis) are shown
here.
Sony Life’s ordinary revenues increased 17.0% year on year, to ¥223.2 billion, due to higher
income from insurance premiums associated with an increased policy amount in force, as
well as increases in investment income, boosted by a relatively favorable financial market
environment.
Income from insurance premiums grew 2.1% year on year, to ¥165.9 billion, associated witha higher policy amount in force. Investment income increased 105.3% year on year, to ¥56.5
billion, due mainly to increased gains on separate accounts, boosted by a relatively favorable
financial market environment, and higher gains on sale of securities in line with the shift toinvesting in ultralong-term bonds from bonds with a short term to maturity, as well as
increased interest income and dividends, resulting from the consistent purchase of ultralongterm bonds.
Investment expenses expanded 133.7% year on year, to ¥6.2 billion, resulting from sales of
securities held, a part of which accounted for losses on sale of securities. As a result, gains
from investment, net, for the total of general and separate accounts increased 102.2% fromthe same period of the previous fiscal year, to ¥50.2 billion, a part of which, gains frominvestment, net, on general account assets increased 21.8%, to ¥21.4 billion.
Insurance claims and other payments increased 9.7% year on year, to ¥66.8 billion.
Operating expenses increased 1.5% year on year, to ¥23.1 billion.
Ordinary profit increased 68.0% year on year, to ¥20.7 billion, due to increased insurance
premiums, reversal of policy reserve for minimum guarantee for variable life insurance, andhigher gains from investment, net, on general account assets.
As a result, net income increased 68.3% year on year, to ¥11.8 billion.

4

Overview of Performance:
Sony Life (Non-Consolidated)(Reasons for changes)(Billions of yen) FY08.1Q

FY09.1Q

Change Declined due mainly to a decline in sales of variable
life insurance

1,004.2

932.2

-7.2％

Annualized premiums fromnew policies*1

16.2

16.0

-1.2％

Of which, third-sector
products

3.5

3.9+13.3％

Lapse and surrender amount*1,*2

499.7

543.2

+8.7％

Lapse and surrender rate*1,*2

1.59%

1.67%

+0.08pt

Gains from investment, net(General account)

17.5

21.4

+21.8％

Core profit

9.3

16.5

+76.8％

Negative spread

6.1

4.5

-26.2％

New policy amount*1

 Decreased slightly due to a decline in sales of variable
life insurance, partially offset by increases in the third
sector, including favorable sales of cancer
hospitalization insurance, launched in April 2009
 Increased for higher lapses in variable life insurance
and its term riders
 Increased owing to higher gains on sale of securities inline with a shift to investing in ultralong-term bonds
from bonds with a short term to maturity, boosted by arelatively favorable financial market environment, as
well as increased interest income and dividends
 Increased by increased interest income and dividends
in line with a shift to investing ultralong-term bonds andhigher income from insurance premiums

Change from 08.6.30

08.6.30

09.3.31

09.6.30

Amount%Policy amount in force*1

31,832.2

32,517.6

32,720.8+888.6+2.8％

Annualized premiums frominsurance in force*1

536.0

547.8

552.8

+16.7

+3.1％

123.6

126.6

128.3

+4.7

+3.8％

Of which, third-sector products

Solvency margin ratio

1,685.6％

2,060.5％

2,264.3％

Change from 09.3.31
up 203.8pts

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

 Decreased due to increased
interest income and dividends

 Rose owing to increased net
unrealized gains on othersecurities

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

5

Here is an overview Sony Life’s performance.

5

Sony Life Operating Performance (1)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)(Thousands of policies)
New policy amount(Trillions of yen)

1,200
1,000

Number of new policies

142

+0.9%

(Billions of yen)

Annualized premiums from new policies

20

Of which, third-sector products

144
15.8

131
972.4

16.2

-1.2%

16.0

15

1,004.2

932.2
-7.2%

100

800

10

600
400

+13.3%

5

200
0

0

FY07.1Q

FY08.1Q

FY09.1Q

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

3.4

3.5

3.9

FY07.1Q

FY08.1Q

FY09.1Q

0Line item amounts are truncated below ¥100 million; percentage figures are rounded.

6(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities decreased 7.2% from the same period of the previous fiscal year,to ¥932.2 billion, owing mainly to a decline in sales of variable life
insurance. The number of new policies was nearly unchanged, rising 0.9%
year on year, to 144 thousand policies.
(Right-hand graph)
Despite a decline in sales of variable life insurance, annualized premiums
from new policies decreased a slight 1.2%, to ¥16.0 billion. Of this amount,the figure for third-sector products was ¥3.9 billion, up 13.3% year on year
due to favorable sales of cancer hospitalization insurance, which
commenced in April 2009.

6

Sony Life Operating Performance (2)Policy Amount in Force

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

Policy amount in force(Trillions of yen)
+5.8%

40

4.52

4.70

+1.6%

32.5

+0.6%

4.78

5 (Billions of yen)
600

31.8
30

Number of policies in force (Millions of policies)

32.7

Annualized premiums from insurance in force
Of which, third sector

+3.1%
536.0

+0.9%

500

+2.8%
3

552.8

547.8

4

400

20
300

2
200

+3.8%

10
1
100

123.6

128.3

126.6

+1.3%
0

0
08.6.30

09.3.31

09.6.30

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

008.6.30

09.3.31

09.6.30

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

7(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual
annuities grew steadily, to ¥32,720.8 billion as of June 30, 2009, up 2.8%
from June 30, 2008, and up 0.6% from March 31, 2009. The number of
total policies grew 5.8% year on year, and was up 1.6% from March 31,
2009, to 4.78 million policies.
(Right-hand graph)
Annualized premiums from total policies as of June 30, 2009, were up
3.1% from June 30, 2008, and up 0.9% from March 31, 2009, totaling¥552.8 billion. Of this amount, the figure for third-sector products was up
3.8% from June 30, 2008, and up 1.3% from March 31, 2009, to ¥128.3
billion.

7

Sony Life Operating Performance (3)Lapse and Surrender Amount*
Number of Lapsed and Surrendered Policies（Individual Life Insurance + Individual Annuities）(Individual Life Insurance + Individual Annuities) ＜Full Year and 1Q＞＜Full Year and 1Q＞(Thousands of(Trillionsof yen)policies)
Lapse and surrender amount (full year)
Number of lapsed and surrendered policies (full year)
Lapse and surrender amount （１Q)
300
Number of lapsed and surrendered policies (１Q)

3

230

235

223

250
2.13

2
1.68

Lapse and surrender rate (based on policy amount, 1Q）

10
Lapse and surrender rate (based on number of lapsed andsurrendered policies, full year)+15.4%

Lapse and surrender rate (based on number of lapsed andsurrendered policies, １Q)

8

6.79

6.48

200

1.84
1.62

Lapse and surrender rate (based on policy amount, full year)

(％)

264

+12.3%

2.5

Lapse and Surrender Rate*

5.82

6.12

5.79

5.68

5.96

1.56

1.59

1.67

1.41

1.37

1.50

FY08

FY09.1Q

6

1.5

5.84

150

4
1

+16.0%

60
0.49

58
0.47

0.5

FY07.1Q

100

70
0.54

+8.7%

FY08.1Q

FY06

FY07

FY08

2

0

0

FY09.1Q

0
FY05

50

FY09.1Q

FY05

FY06

FY07

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.
*Figures for lapse and surrender amounts, numbers of lapsed and surrendered policies, andlapse and surrender rates are calculated without offsetting policies that are reinstated.

8

The left-hand graph shows the lapse and surrender amount and thenumber of lapsed and surrendered policies, while the right-hand graphshows the lapse and surrender rate.
(Right-hand graph)
The lapse and surrender rate rose 0.08 percentage point from the same
period of the previous fiscal year, to 1.67%.
The main reason for the rise was an increase in cancellations of variable
life insurance policies and its term riders for individual customers. We
believe that these cancellations stemmed from the economic downturn.

8

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

Ordinary Profit(Billions of yen)

200

40

+2.1%

162.5

158.1

165.9

150

30

20.7

100

20

+68.0%

50

12.2

12.3

FY07.1Q

FY08.1Q

100

0
FY07.1Q

FY08.1Q

FY09.1Q

FY09.1Q

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

9(Left-hand graph)
Income from insurance premiums grew 2.1% from the same period of theprevious fiscal year, to ¥165.9 billion, associated with a higher policy
amount in force.
(Right-hand graph)
Ordinary profit increased 68.0% year on year, to ¥20.7 billion, due toincreased insurance premiums, reversal of the policy reserve for minimum
guarantee on variable life insurance, and higher gains from investment, net,on general account assets.

9Sony Life Operating Performance (5)Core Profit

Negative Spread(Billions of yen)(Billions of yen)

30

40

30

20

26.7

16.5
+76.8%

21.3
20(For 1Q)
10

9.3
7.0

- 26.2%

10

0

6.1

4.5

0

FY07.1Q

FY08.1Q

FY09.1Q

FY07

FY08

FY08.1Q

FY09.1Q

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

10(Left-hand graph)Core profit rose 76.8% year on year, to ¥16.5 billion, owing mainly tohigher income from insurance premiums associated with an increased
policy amount in force and an increase in interest income and dividends,
associated with a shift to investing in ultralong-term bonds.
(Right-hand graph)
In line with the increase in interest and dividend income, the negative
spread narrowed 26.2% year on year, to ¥4.5 billion.

10

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

Number of Independent Agents(Agents)(Employees)

3,000

+37
4,000

3,891
3,759

3,779

2,129

3,928

2,151

2,091

2,000

2,112

2,084

- 28

3,793

1,000

0
3,000

0
07.6.30

08.3.3108.6.30

09.3.31

09.6.30

07.6.30

08.3.3108.6.30

09.3.31

09.6.30

11(Left-hand graph)
The number of Lifeplanner sales employees as of June 30, 2009, was
3,928, up 37 from March 31, 2009.
(Right-hand graph)
The number of independent agents decreased 28 from March 31, 2009, to
2,084.

11

Sony Life Operating Performance (7)Breakdown of General Account Assets
Fiscal 2009 1Q Asset Management Review

50.9%
67.4%

69.0%

Japanese government andcorporate bonds
Japanese stocks

AssetsForeign government andcorporate bonds
Foreign stocks• Japanese stocks: Balance essentially unchanged.

Monetary trusts

5.3%
4.7%
0.8%
27.5%

Total

2.4% 2.6%
2.5%

Accumulated ultralong-term bonds to be held tomaturity. Decreased remainder of convertible bonds
through sale and redemption.

Income and Gains/Losses on BS/PL• Interest income and dividends (PL): Increased as aresult of the accumulation of ultralong-term bonds.
•Unrealized gains/losses on other securities (BS):Improved through increases in stock prices.

Policyholder loans

2.7% 1.4%
0.6%
17.2%

3.3%

• Japanese government and corporate bonds:

3.4%

2.3% 1.6%
3.3%

2.4%1.7%0.6%
15.4%
3.4%

Real estate

Notes:Cash and call loans

Japanese stocks and convertible bonds (CBs) in generalaccount assets as of June 30, 2009 were as follows:* Figures in parentheses, ( ), are as of June 30, 2008.

Other
2.3%
2.3%
3.1%

Japanese stocks: ¥72.4 billion (¥217.1 billion)
Of which, Japanese stocks in monetary trusts: ¥12.5 billion(¥35.9 billion)
Accounting for 2.0% (6.4%) of total general account assets.
CBs: ¥206.8 billion (¥431.9 billion)
Of which, CBs in monetary trusts: ¥58.7 billion （¥141.6 billion)
Accounting for 5.7% (12.8%) of total general accountassets.

08.6.30

09.3.31

09.6.30

3,387.6

3,535.7

3,606.0(Billions of yen)

12

Here is a breakdown of Sony Life’s general account assets as of June 30,
2009, compared with those as of June 30, 2008, and March 31, 2009.
Japanese stocks, including those in the category of “monetary trusts,”
decreased to 2.0% of general account assets as of June 30, 2009.
Convertible bonds, which are included in the categories of both “Japanese
government and corporate bonds” and “monetary trusts,” also declined,accounting for 5.7% of general account assets as of March 31, 2009.
Sony Life strives to continue increasing its investment in ultralong-termbonds. In the current fiscal year, we will maintain this policy.
Please refer to the appendix for changes in Sony Life’s general accountasset portfolio.

12Sony Life Operating Performance (8)Net Unrealized Gains/Losses on Available-for-Sale Securities with Market Value
Changefrom
09.3.3108.3.3108.6.30

08.9.30

08.12.31

09.3.31

09.6.30

83.4

28.6

19.0

58.8

26.9

34.2

+7.2

9.2

8.4

-19.5

-22.6

-21.2

-8.0

+13.1

Japanese stocks

50.8

63.2

24.1

3.3

1.4

11.5

+10.1

Foreign securities

-9.5

-5.8

-12.1

-6.1

-3.6

-2.0

+1.5

Other securities

3.0

3.8

1.9

-0.0

-0.5

0.9

+1.4

127.8

89.8

33.0

56.0

24.2

44.5

+20.3

(Billions of yen)Japanesegovernment andcorporate bonds
CBs

Total

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.”
3) Japanese government and corporate bonds of ¥34.2 billion as of June 30, 2009, do not include unrealized loss on held-to-maturity securities of ¥0.2 billion.
Foreign securities of -¥2.0 billion do not include unrealized gains on held-to-maturity securities of ¥2.6 billion.
4) As of June 30, 2009, the weighted-average fair value of convertible bonds held by Sony Life was ¥92.6. The average remaining period was 4.0 years(In the event that Sony Life executes put options, the average remaining period would be 2.5 years.)

13

Here, you see net unrealized gains/losses on available-for-salesecurities with market value in the general account assets.

13

Sony Life Operating Performance (9)Solvency Margin Ratio

(%)

2,500

+203.8pt 2,264.3
2,060.5

2,000

1,747.9

1,500

1,000

500

0
08.3.31

09.3.31

09.6.30

14

As of June 30, 2009, Sony Life’s solvency margin ratio was 2,264.3%, up
203.8 percentage points from March 31, 2009.

14

Highlights of Operating Performance:
Sony Assurance
FY20081Q

FY2009
1Q

15.7

17.4

＋1.7

＋11.3％

Underwriting income

15.5

17.3

＋1.7

＋11.4％

Investment income

0.1

0.1

＋0.0

＋10.0％

Ordinary expenses

15.2

16.5

＋1.3

＋8.9％

Underwriting expenses

11.4

12.6

＋1.1

＋10.2％

Investment expenses

－

0.0

＋0.0

－

Operating, general andadministrative
expenses

3.7

3.9

＋0.1

＋4.3％

Ordinary profit
Underwriting profit

0.4
0.3

0.9
0.7

+0. 4
+0. 4

+ 91.5％+142.2％

Net income

0.2

0.6

+0. 3

+111.9 ％(Billions of yen)
Ordinary revenues

Ordinary revenues

17.4
15.7

+11.3%+91.5%
0.9
0.4
FY08.1Q

ChangeOrdinary profit(Billions of yen)

FY09.1Q

Sony AssuranceOrdinary revenues and ordinary profit increased,
year on year.
Ordinary revenues amounted to ¥17.4 billion, up
11.3% year on year. Net premiums written
amounted to ¥17.3 billion, up 11.4% year on year,
owing to an increase in the number of policies inforce for mainstay automobile insurance.
Ordinary profit amounted to ¥0.9 billion, up 91.5%
year on year, due mainly to an increase in ordinary
revenues and a decline in the net expense ratio.

(Billions of yen)

Change from09.3.3108.6.30

09.3.31

09.6.30

Underwriting reserves

45.5

50.7

53.8

＋3.0

＋6.0%

Total net assets

15.6

13.6

14.4

+ 0.7

+ 5.5%

-0.1

-0.1

-0.0

＋0.1

－

81.4

86.6

90.1

＋3.4

＋4.0%

Net unrealized gains/losses onother securities (net of taxes)

Total assets

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

15

Highlights of Sony Assurance’s operating performance are shown here.
Ordinary revenues rose 11.3% compared with the same period of theprevious fiscal year, to ¥17.4 billion, primarily due to strong sales of its
mainstay automobile insurance, which raised net premiums written.
Ordinary profit increased 91.5% year on year, to ¥0.9 billion, owing mainly
to the increase in ordinary revenues and a decline in the net expense ratio,
resulting in net income of ¥0.6 billion, up 111.9% year on year.

15

Overview of Performance:
Sony Assurance(Billions of yen)

FY2008 1Q

FY2009 1Q

ChangeDirect premiums written

15.4

17.2

Net premiums written

15.5

17.3

+11.7％+11.4％Net losses paid

6.8

8.0

+16.8％Net loss ratio

49.8%

52.0％

Up 2.2pt

Net expense ratio

26.1%

24.6％

Down 1.5pt

Combined ratio

75.9%

76.5％

Up 0.6pt

Underwriting profits

0.3

0.7

+142.2％Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

Number of policies in force

08.6.30

09.3.31

09.6.30

Change from 08.6.30

1.06 million

1.15 million

1.19 million+0.13 million+12.8%The number of policies in force is the total of automobile insurance and medical and cancer insurance,
which accounts for 99% of net premiums written.

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

16

Here is an overview of Sony Assurance’s performance.

16

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

Direct Premiums Written(Millions of yen)

FY08 1Q(Millions of yen)

ChangeFY09.1Q

68

Fire

71

+5.0％

Fire

FY08 1Q

FY09 1Q

3

Change

3

-8.0％

－

－

－

9

2

-70.4％

Personal accident

1,630

1,708

+4.8％

Personal accident

1,720

1,780

+3.5％

Voluntary automobile

13,742

15,473+12.6％

Voluntary automobile

13,69015,415+12.6％

105

99

-5.9％

15,52917,301+11.4％

MarineCompulsory
automobile liability

Total

－

－

－

15,441

17,253+11.7％

MarineCompulsory
automobile liability
Total

Net losses paid
(Millions of yen)Fire

FY08 1Q

ChangeFY09 1Q

0

0

-9.0％

3

0

-76.8％

303

348+15.0％

Voluntary automobile

6,436

7,538

+17.1％

Compulsory
automobile liability

116

126

+8.6％

6,859

8,014

+16.8％

MarinePersonal accident

Total

Percentage change figures are rounded.

17

This slide shows direct premiums written, net premiums written and net
claims paid by type.
(Details of Sony Assurance’s performance are provided from the next
slide.)

17

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force(Billions of yen)

(Millions of policies)

Voluntary automobile insurance
Others

1.06+12.8%

20

Personal accident insurance
Number of policies in force

15.5
1.7

+11.4%(Billions of yen)
1

1

+91.5%

0.1

1.7
0.5

10

13.6

15.4

0.4

0.5

0

0
FY08.1Q

0.9

1.19
17.3

0.1

Ordinary Profit

FY09.1Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.
Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

0

FY08.1Q

FY09.1Q

Line item amounts are truncated below ¥100 million.

18(Left-hand graph)
Number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 12.8% year on
year, to 1.19 million policies.
Net premiums written posted an 11.4% year-on-year increase, to ¥17.3
billion.
(Right-hand graph)
Ordinary profit rose 91.5% year on year, to ¥0.9 billion, owing mainly to theincrease in ordinary revenues and a decline in the net expense ratio, as
explained before.

18

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

Net Expense Ratio + Earned/Incurred Loss Ratio(%)

Net expense ratio

Earned/incurred loss ratio(For 1Q)

100

89.0

90.2

89.0

Net expense ratio(%)(For 1Q)

86.9
80.3

-2.1pt80

Net loss ratio

100.0

81.7

80.0

76.5

75.9
+0.6pt-0.6pt

60

62.3

63.5

62.9

62.3

60.0
53.5

+2.2pt

55.0

52.0

49.8

40

20

40.0

-1.5pt

26.7

20.0

26.7

26.1

24.6

FY08

FY08.1Q

FY09.1Q0

26.7-1.5pt

26.7

26.1

24.6

FY08

FY08.1Q

FY09.1Q

0.0
FY07

FY07

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

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

adjustment expenses and accumulation in provision for reserve for outstanding

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

net premiums written.

*Note that earthquake insurance and compulsory automobile liability
insurance are excluded from the above calculation.

19(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which is ina growth phase, we show the combined ratio calculated using theearned/incurred loss ratio rather than the net loss ratio. For the threemonths ended June 30, 2009, the earned/incurred loss ratio dropped 0.6
percentage point, to 62.3%, a relatively low level, from the same period of
the previous fiscal year.
The net expense ratio dropped 1.5 percentage points, to 24.6%, resulting
from an increase in net premiums written.
(Right-hand graph)
The net loss ratio rose 2.2 percentage points compared with the same
period of the previous fiscal year, to 52.0%. This is different from theearned/incurred loss ratio, which reflects a decrease in provision for reservefor outstanding losses, influenced by higher insurance claims payments.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 0.6 percentage point year on year, to 76.5%.

19

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

1,400
1,200

1,073.9
993.0

1,000

+27.1pt

1,020.1

800
600
400
200
0
08.3.31

09.3.31

09.6.30

Note: Figures as of March 31, 2008, and March 31, 2009, are calculated based on the Insurance Business Law of Japan Enforcement
Regulations and Ministry of Finance ordinances. A portion of the figures as of June 30, 2009, are calculated according to methods
judged rational by Sony Assurance.

20

As of June 30, 2009, Sony Assurance’s solvency margin ratio was
1,020.1%, up 27.1 percentage points from March 31, 2009. These figures
show that Sony Assurance has maintained a sound financial base.

20

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

8.6-11.1%(Billions of yen)

7.6

1.2 -61.6%
0.4
FY08.1Q(Billions of yen)

Ordinary profit

FY09.1Q

Sony Bank
Ordinary revenues and ordinary profit decreased year on year.
Gross operating profit decreased ¥0.3 billion year on year due to adecrease in net other operating profit, a part of which offset net
interest income.
- Net interest income increased ¥2.1 billion due to higher interest
on loans and a decline in interest on deposits in the lowering ofinterest rates.
- Net fees and commissions increased ¥0.3 billion owing toincreased fees and commissions from foreign exchange margintransactions- Net other operating income decreased ¥2.5 billion due to reduced
gains from derivatives, net.
Net income decreased ¥0.4 billion year on year.
Customer assets were up ¥20.0billion from March 31, 2009.

FY2008FY2009

1Q

1Q

ChangeOrdinary revenues

8.6

7.6

-0.9

Gross operating profit

3.6

3.2

-0.3

-8.8%

Net interest income

1.0

3.2

+2.1

+197.6%

Net fees and commissions

0.0

0.03

+0.03

+468.4%

Net other operating income

2.5

-0.01

-2.5

-100.7%

General andadministrative expenses

2.3

2.7

+0.4

+17.2%

Ordinary profit

1.2

0.4

-0.7

-61.6%Net income

0.7

0.2

-0.4

-62.7%Net operating profit

1.2

0.5

-0.7

-56.5%(Billions of yen)

-11.1%

Change from09.3.3108.6.30

09.3.31

09.6.30

Securities

613.8

823.1

8,07.8

-15.3

-1.9%

Loans

372.6

477.0

510.8

+33.8

+7.1%

Deposits

1,241.2

1,326.3

1,330.9

+4.5

+0.3%

Total net assets

1,346.7

1,403.6

1,423.7

+20.0

+1.4%

41.3

46.2

53.2

+7.0

+15.2%

-11.2

-9.6

-3.1

+6.4

－

1,312.4

14,1191,438.6

+26.7

+1.9%

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

Total assets

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

21

Highlights of Sony Bank’s operating performance (on a non-consolidated
basis) are shown here.
Sony Bank’s ordinary revenues decreased 11.1% compared with thesame period of the previous fiscal year, to ¥7.6 billion, owing mainly todecreases in net other operating income, a part of which offset increases
in net interest income, bolstered primarily by the growing loan business.
Ordinary profit decreased 61.6% year on year, to ¥0.4 billion, due to a
decline in gross operating profit, resulting from lower net other operating
income, as well as an increase in general and administrative expenses,
primarily system-related expenses.
Gross operating profit dropped 8.8% from the same period of the previous
fiscal year, to ¥3.2 billion. With respect to the breakdown of grossoperating profit, net interest income rose year on year, due to higher
interest on loans and a decline in interest on deposits resulting from lower
interest rates. Net fees and commissions increased year on year, owing toincreased fees and commissions from foreign exchange margintransactions. Net other operating losses were ¥16 million, compared with
net other operating income of ¥2.5 billion during the same period of theprevious fiscal year, due to reduced gains from derivatives, net.
As a result, net income decreased 62.7% year on year, to ¥0.2 billion.

21

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

08.6.30

09.3.31

09.6.30

Change from 09.3.31
Amount/Number％

Customer assets

1,346.7

1,403.6

1,423.7

+20.0

+1.4%

Deposits

1,241.2

1,326.3

1,330.9

+4.5

+0.3%

Yen

988.6

1,044.2

1,032.7

-11.5

-1.1%

Foreign currency

252.5

282.1

298.2

+16.0

+5.7%

Investment trusts
Loans
Mortgage loans
Other
Number of accounts(thousands)
Capital adequacy ratio*(domestic criteria)

105.4

77.2

92.7

+15.5

+20.1%

372.6

477.0

510.8

+33.8

+7.1%

364.4

468.3

502.3

+34.0

+7.3%

8.1

8.7

8.5

-0.2

-2.9%

640

723

736

+12

+1.8%

10.20％

13.37%

13.41％+ 0.04pt• Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.

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

22

Here is an overview of Sony Bank’s performance.

22

Overview of Performance:
Sony Bank (Non-Consolidated) (2)■On a Financial Accounting Basis■Reference: On an Internal Control Basis

FY08.
1Q

FY09.
1Q

Gross operating
profit (A)

3.6

3.2

Net interest
income

1.0

3.2

+2.1

Net fees andcommissions

0.0

0.03

Net other
operatingincome2.5-0.01

General andadministrative
expenses

2.3

2.7

+0.4

+17.2%

Ordinary profit

1.2

0.4

-0.7

-61.6%Net income

0.7

0.2

-0.4

-62.7%Net operating profit
(B)

1.2

0.5

-0.7

-56.5%

Change

FY08.
1Q

FY09.
1Q

Change

3.6

3.2

-0.3

-8.8%.

Net interest income *1

2.7

3.3

+0.5

+21.3%+197.6%

Net fees andcommissions *2

0.2

0.3

+0.1

+46.3%+0.03+468.4%

Net other operating
income *3 (C)

0.5

-0.4

-1.0

-180.4%-2.5-100.7%Gross operating profit(core profit) *4 (A)-(C)

3.0

3.7

+0.7

+23.4%Net operating profit(core profit) *5 (B)-(C)

0.7

1.0

+0.3

+43.6%

-0.3

-8.8%

Gross operating profit(Billions of yen)

●On an Internal Control Basis
The following adjustments are made to the figures on a financial accounting basis to account for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustment (*1 and *2), consists of profits and losses for bond and derivative dealing transactions.
●Core profit
Profits and losses exclude net other operating income, including those for bond and derivative dealing transactions, and stands for Sony Bank’s
basic profits.
*4: Gross operating profit (core profit): Gross operating profit － Net other operating income*5: Net operating profit (core profit): Net operating profit － Net other operating income
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

The table on the right indicates profits on an internal control basis.
The internal control basis is a method we use to describe profit conditions more
appropriately, so these figures are adjusted from profits on a financial accounting basis,
according to the notes shown below the tables.
For example, on a financial accounting basis gains or losses from currency swap
transactions is included in net other operating income, but in fact these are profits orlosses on customer investments of foreign currency deposits. Therefore, on an internal
control basis this is posted separately as net interest income.
In the same way, on a financial accounting basis, gains or losses on foreign currencytransactions that is included in net other operating income derived from customer dealing
in foreign currency deposits is posted as net fees and commissions.
In the lower table, gross operating profit on a core profit basis and net operating profit ona core profit basis show only profits from the bank’s fundamental businesses: net interest
income and fees and commissions, excluding effects resulting from fluctuations infinancial market conditions such as profits and losses on bond and derivative dealingtransactions. These figures, therefore, indicate the changes in Sony Bank’s core profits.
Looking at first-quarter fiscal 2009 operating performance on a core profit basis, grossoperating profit on a core profit basis was ¥3.7 billion and net operating profit on a coreprofit basis was ¥1.0 billion. Separating the amounts in this manner shows how the
bank’s basic profitability is increasing.

23

Sony Bank Operating Performance (1)<Reference>
Net Operating Profit (Core Profits)<Reference>
Interest Spread (Internal Control Basis)(Billions of yen)

1.2

Interest spread

1.0

Yield on investment

2.50%

Yield on financing

1.0
2.16%

2.07%

2.00%

0.8

1.94%

0.7

1.73%
1.50%

0.6

1.64%

1.31%
1.28%
1.09%

1.00%

0.4

0.82%
0.69%
0.50%

0.2

0.0

0.85%

0.78%

0.84%

0.91%

FY08.1Q

FY08.2Q

FY08.3Q

FY08.4Q

0.95%

FY09.1Q

0.00%

FY08.1Q

FY09.1Q

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency
swap transactions in net other operating income.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

24(Left-hand graph)
Here you see profit on a core profit basis, as I explained on the previous
slide.
(Right-hand graph)
The interest spread directly linked to net interest income is shown on aninternal control basis.
As I explained earlier, we analyze profits and losses by including gains orlosses from currency swap transactions in the interest spread, which are
gains or losses from the investment of funds in nature.
This graph indicates how the yield on financing has declined since autumn
of 2008, owing to a worldwide downtrend in interest rates. However,
because the bottoming out of the yield on investment has been relatively
gradual, the interest spread has actually continued to improve since thesecond quarter of last year.

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

723(Billions of yen)
1,500

640
1,346.7+12736

1,403.6 +20.0 1,423.7

Loans(Billions of yen)
600

Mortgage loans

Other

510.8
¥8.5
billion477.0

500¥92.7 billion+33.8¥298.2 billion

400

372.6

1,000
¥502.3billion300
Deposits total:¥1,330.9 billion

200
500¥1,032.7 billion

100

0

0
08.6.30

09.3.31

09.6.30

08.6.30

09.3.31

09.6.30

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

25

Sony Bank’s operating performance is explained on the next slide.
(Left-hand graph)
As of June 30, 2009, customer assets (the sum of deposits and investment
trusts) was up ¥20.0 billion from March 31, 2009, to ¥1,423.7 billion.
As for the breakdown of customer assets as of June 30, 2009, deposits
amounted to ¥1,330.9 billion, up ¥4.5 billion compared with March 31, 2009,and investment trusts were ¥92.7 billion, up ¥15.5 billion.
As of June 30, 2009, the number of accounts was 736 thousand, up 12
thousand accounts from March 31, 2009.
(Right-hand graph)
Loans expanded steadily, to ¥510.8 billion, up ¥33.8 billion, owing primarily
to a growing balance of mortgage loans.

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

Balance of Securities by Credit Ratings(%)(Billions of yen)
1,000
900

20

AAA

AA

A

BBB

BB

Other

823.1

15

13.41

13.37

800

807.8
700

＋0.04pt

10.20

613.8
10

600
500
400

5

300
200
0
08.6.30

100

09.3.31

09.6.30

Note: During the year ended March 31, 2009, Sony Bank raised its capital by¥120.0 billion by allocating its shares to Sony Financial Holdings.

008.6.30

09.3.31

Amounts are truncated below ¥100 million.

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

26(Left-hand graph)
As of June 30, 2009, the balance of securities was ¥807.8 billion, down
1.9% from March 31, 2009.
The left-hand graph shows the breakdown of securities by credit rating.
Sony Bank invests in highly rated bonds, mainly those rated AAA.
(Right-hand graph)
As of June 30, 2009, Sony Bank’s non-consolidated capital adequacy ratio*(domestic criteria) was 13.41%, up 0.04 percentage points from March 31,
2009. These figures indicate that Sony Bank has maintained a soundfinancial base.

26

Consolidated Financial Forecast
for the Year Ending March 31, 2010
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.
FY09.1H(Forecast)
Consolidated ordinary
revenues

FY09.1H(Updated
Forecast)

ChangeFY09

FY08(Forecast)(Actual)

FY09 forecast■Life insurance businessvs FY08 actual

During the first quarter, ordinary revenues andordinary profit exceeded our forecast, due tohigher interest income and dividends, resulting
from the consistent purchase of ultra long-termbonds. This is also because of more gains onsale of securities in line with a shift to investingin ultralong-term bonds from bonds with ashort term to maturity, boosted by a relatively
favorable financial market environment, as
well as the lower insurance claims and otherpayments. Accordingly, SFH revised its firsthalf forecast but did not change its annual
forecast, owing to uncertainty in the financial
market environment.

437.0

456.0

900.0

860.3

+4.6%

392.1

410.8

808.7

766.2

+5.5%

32.9
12.7

32.9
12.7

65.3

61.8

+5.5%

26.1

33.3

- 21.8%

Consolidated ordinary profit
Life insurance business
Non-life insurance businessBanking business

20.0

27.0

46.0

34.2

+34.3%

19.8

26.6

43.5

32.5

+33.7%

0.4

0.4

1.2

2.1

- 44.9%

0.3

0.3

1.3

-0.5

－

Consolidated net income

10.0

14.0

24.0

30.7

- 21.9％Life insurance business
Non-life insurance businessBanking business

Consolidated Ordinary Revenues(Billions of
yen)
1,000

Banking business
Non-life insurance businessLife insurance business

860.3

Consolidated Ordinary Profit(Billions of
yen)
50

900.0

46.0

45
40

800

Banking business
Non-life insurance businessLife insurance business

34.2

35

■Non-life insurance business
The financial forecast remains unchanged
because SFH has adopted a cautious
approach in estimating growth in the newpolicy amount and net loss ratio, and owing toa higher net expense ratio, despite thefavorable results in the first quarter.

30

600

■Banking Business

25(Forecast)
Forecast)

400(Forecast)
Forecast)

20
15
10

200

The financial forecast remains unchanged
because of the present financial market
environment, despite higher results thanforecast in the first quarter.

5
0

0
FY08

FY09

-5

FY08

FY09

27

Here is our consolidated financial forecast for the fiscal year ending March
31, 2010.
On July 30, 2009, SFH revised its consolidated financial results forecast forthe six months ending September 30, 2009, from those announced on May
14, 2009. This revision was made because ordinary revenues and ordinary
profit in the life insurance business during the three months ended June 30,
2009 exceeded our forecast.
By segment, the life insurance business accounted for higher interest
income and dividends, resulting from the consistent purchase of ultralongterm bonds, and higher gains on sale of securities held, boosted by arelatively favorable financial market environment, as well as lower
insurance claims and other payments. As a result, the life insurance
business revised upward its financial results forecast for the six months
ending September 30, 2009. However, it has not revised its financial
forecast for the year ending March 31, 2010, owing to uncertainty in thefinancial market environment.
As for the non-life insurance business and the banking business, financial
forecasts for the six months ending September 30, 2009, and the year
ending March 31, 2010, remain unchanged, reflecting expected increases
in operating expenses from the second quarter and uncertainty in thefinancial market environment, although their operating results for the firstquarter were slightly higher than their forecasts.

27

Appendix

28

Appendix28

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Adjusted Net Assets and Solvency Margin
1. Net Assets on BS

2. Adjusted Net Assets

3. Solvency Margin(Billions of yen)
Total stockholders’ equity
Net unrealized gains on othersecurities, net of taxes

09.3.31

09.6.30

138.1

143.0

4.0

17.2

09.3.31

09.6.30

09.3.31

09.6.30

1,381

143.0

131.1

143.0

4.0

17.2

－

－

Net unrealized gains/losses onavailable-for-sale securities

－

－

－

－

17.6

34.7

Land revaluation, net of taxes

-1.4

-1.4

-1.4

-1.4

－

－

Reserve for price fluctuations

－

－

3.6

5.0

3.6

5.0

Contingency reserve

－

－

45.4

46.2

45.4

46.2

Reserve for possible loan losses

－

－

－

－

0

0

Net unrealized gains on real estate

－

－

6.5

6.5

4.8

4.8

Excess of the amount equivalent topolicy reserve under Zillmer method

－

－

302.2

305.5

302.2

305.5

Unallocated portion of reserve forpolicyholders’ dividends

－

－

0.3

0.3

0.3

0.3

Future profit

－

－

－

－

－

－

Deferred tax assets

－

－

－

－

25.7

32.5

Net unrealized gains/losses on heldto-maturity bonds

－

－

26.7

2.4

－

－

Deferred tax liabilities for availablefor-sale securities

－

－

6.9

12.7

－

－

140.7

158.8

532.6

537.7

531.3

Total

Reference

3. Amount before tax x 90%

2. Before tax (after revaluation)
3. Amount before tax(before revaluation) x 85%

2. Before tax

572.4
Line item amounts are truncated below ¥100 million.

29

Sony Life’s Breakdown of Net Assets

29Changes in Sony Life’s General Account Asset
Portfolio (1)Reduced equity assets, including Japanese stocks and CBs, from the second half of FY08
CBs in General AccountJapanese Stocks in General Account(Billions of yen)
300

Japanese stocks

CBs(Billions of yen)

Included in "monetary trusts"

Included in monetary trusts

431.9
367.0

Flattened out to 2.0% of

217.1

general account assets, as a

200

result of sale, devaluation, etc.

173.9

Reduced to 5.7% ofgeneral account assets,
as a result of sale anddevaluation

399.2

400

298.1

300

206.8
200

100

83.9
61.3

35.9
08.6.30

08.9.30

FY08.1Q
Impairment
lossesIncluded inmonetary
trusts

0.4
0.0

100

141.6

136.7
122.7
96.8

28.4

0

72.4

13.7

10.4

12.5

08.12.31

09.3.31

09.6.30

FY08.2Q2.7
0.8

FY08.3Q

13.7
3.3

FY08.4Q

0.6
0.1

58.7

0
08.6.30

08.9.30

08.12.31

09.3.31

09.6.30

FY08.1Q

FY08.2Q

FY08.3Q

FY08.4Q

FY09.1Q－

Impairment
losses

0.3

0.2

5.0

20.1

－

－

Included inmonetary
trusts

0.1

－

1.6

6.3

－

FY09.1Q

Line item amounts are truncated below ¥100 million. Each of impairment losses is on quarterly basis.

30

Changes in Sony Life’s General Account Asset Portfolio (1)30Changes in Sony Life’s General Account Asset
Portfolio (2)Market Value Information on Securities (General Account) Reduced equity assets (stocks and convertible bonds) within available-for-sale securities over the
past year. Accumulated ultralong-term bonds to be held to maturity.
 Lengthened average bond duration： 8.7 years (08.3.31(08.3.31)) =>13.6 years (09.3.31) =>14.7=>14.7 years (09.6.30)
 Decreased trading-purpose securities

zFair value information on securities with market value (except trading-purpose securities)*
08.3.31
Category
Held-to-maturity
securities
Available-for-salesecurities
Domestic bonds(CBs)
Domestic stocks
Foreign securities
Other securities
Total

C arryin gvalue be forema rk-to-m arket

08.6.30
N et
u nrealized
gains/losses

Fair value(Billions of yen)

09.3.31

C arryin g
va lue bef ore
ma rk-to-m arket

Fair value

N etu nrealized
gains/losses

C arryin g
va lue bef ore
ma rk-to-m arket

Fair value

09.6.30
N et
u nrealized
gains/losses

Carrying
value before
m ark-to-market

Fair valueNet
unrealized
gains/losses

-

-

-

13.7

14.0

0.2

1,399.0

1,425.7

26.7 1,641.3 1,643.7

2.4

2,724.9

2,852.8127.8

2,806.0

2,895.9

89.8

1,675.5

1,699.7

24.2 1,472.2 1,516.8

44.5

2,379.9
380.9
152.9
184.9
7.1
2,724.9

2,463.4
390.2
203.8
175.4
10.1
2,852.8

83.4
9.2
50.8
-9.5
3.0
127.8

2,462.5
387.3
149.9
186.3
7.1
2,819.7

2,491.2
395.8
213.1
180.5
10.9
2,909.9

28.6
8.4
63.2
-5.8
3.8
90.1

1,546.9
297.7
56.9
64.2
7.4
3,074.5

1,573.9
276.5
58.3
60.5
6.8
3,125.4

26.9 1,352.9 1,387.2
-21.2
210.4
202.3
1.4
56.9
68.4
-3.6
54.9
52.8
-0.5
7.4
8.3
50.9 3,113.5 3,160.5

34.2
-8.0
11.5
-2.0
0.9
47.0

*Amounts above include those categorized in “monetary trusts.”
Line item amounts are truncated below ¥100 million.

31

Changes in Sony Life’s General Account Asset Portfolio (2)31Recent Topics
Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for approx. 34% of the amount of
new mortgage loans.
* Sony Life started handling banking agency business in Jan. 2008.

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

Recent topics
2009-4-2

Sony Life commenced sales of cancer hospitalization insurance, advanced medical treatment rider andhospitalization surgical benefits rider

2009-4-10

SFH announced a shelf registration arrangement for corporate bond issues

2009-4-20

Sony Bank entered tie-up with PanaHome in mortgage loans

2009-5-11

Sony Assurance launched an overseas travel insurance policy on its websites

2009-6-1

Sony Bank started a special program for the summer 2009 bonus season

2009-6-1
2009-7- 1

Sony Assurance launched an additional cancer treatment insurance policy, MEDCOM, on its websites
through an alliance with SECOM ("SECOM Insurance")
Sony Assurance launched a Mobile GPS Service for automobile insurance policyholders

2009-7-1

Sony Life opened representative office in Taipei

2009-7-23

Sony Life entered tie-up with specified nonprofit organization Yuigon Sozoku Legal Network

32

Recent topics

32

Contact:

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

33

Contacts

33