November 13, 2017
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Six Months Ended September 30, 2017
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary (Year-on-Year Comparison)

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Risk-monitored Loans

P.5

6. Securities

P.6

7. Non-consolidated Solvency Margin Ratio

P.7

11. Balance Sheets
As ofMarch 31, 2017

(Millions of yen)
As ofSeptember 30, 2017

Assets:Cash and deposits

8,951

15,502

137,553

141,523

Tangible fixed assets

3,399

2,857

Intangible fixed assets

6,529

6,095

Other assets

22,125

19,646

Accounts receivable

15,097

12,582Others

7,028

7,064

7,978

8,657

186,537

194,283

144,514

151,772

Reserve for outstanding losses and claims

38,34039,387

Underwriting reserves

106,173

112,385

9,877

8,758

Income taxes payable

1,746

2,181

Others

8,130

6,577

Reserve for employees’ retirement benefits

1,440

1,516

Reserve for directors’ retirement benefits

36－

Reserve for employees’ bonuses

1,082

1,003

Reserve under the special laws177

191

Reserve for price fluctuations

177

191

157,128

163,244

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

4,808

6,405

Total shareholders' equity

28,197

29,794

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

1,211

1,245

Total valuation and translation adjustments

1,211

1,245

29,40931,039186,537

194,283

Securities

Deferred tax assets
Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net Assets
Total Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the six months ended
September 30, 2016
Ordinary Revenues

For the six months ended
September 30, 2017

50,26654,79848,96753,81748,93453,786

33

30

1,277

956

(Interest income and dividends)

661

667

(Gains on sale of securities)

649

320

(Transfer to interest and dividends on deposits of premiums)

(33)

(30)

21

24

46,89850,211

Underwriting expenses

34,641

36,764(Net losses paid)

24,04624,937(Loss adjustment expenses)

3,683

3,672

790

896

(Provision for reserve for outstanding losses)

1,603

1,046

(Provision for underwriting reserves)

4,517

6,211

12,253

13,445

2

1

3,368

4,587

Extraordinary Gains－－

Extraordinary Losses

13

16

Losses on sale or disposal of fixed assets

01

Provision for reserve under the special laws

13

14

Provision for reserve for price fluctuations

13

14

Income Before Income Taxes

3,355

4,571

Income Taxes –Current

1,358

1,908

Income Taxes –Deferred

(480)

(691)

Total Income Taxes

878

1,216

2,476

3,354

Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income

Other ordinary income
Ordinary Expenses(Net commissions and brokerage fees)

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit

Net Income33. Financial Summary (Year-on-Year Comparison)(Millions of yen)
For the six months ended For the six months ended
September 30, 2016
September 30, 2017

Change(Amount)

Change(%)

Gross direct premiums written

48,31953,116

4,796

9.9(Direct premiums written)

48,31953,116

4,796

9.9

48,96753,817

4,849

9.9

48,93453,7864,852

9.9

Underwriting expenses

34,641

36,7642,123

6.1(Net losses paid)

24,04624,937890

3.7(Loss adjustment expenses)

3,683

3,672

(10)

(0.3)

790

896

106

13.4

1,277

956

(321)

(25.1)(Interest income and dividends)

661

667

5

0.9

(Gains on sale of securities)

649

320

(329)

(50.7)－－－－

12,253

13,445

1,191

9.7

12,226

13,414

1,187

9.7

18

23

5

28.7

3,368

4,587

1,219

36.2

2,099

3,637

1,537

73.2

Extraordinary Gains－－－－Extraordinary Losses

1316220.5

Extraordinary gains (losses), net

(13)

(16)

(2)

－

Income Before Income Taxes

3,355

4,571

1,216

36.3

Income Taxes -Current

1,358

1,908

549

40.4

Income Taxes -Deferred

(480)

(691)

(211)

－

Total Income Taxes

878

1,216

338

38.5

2,476

3,354

878

35.5

Underwriting income(Net premiums written)

Ordinary Income (expenses)(Net commissions and brokerage fees)
Investment income

Investment expenses
Operating, general and administrative expenses(Operating, general and administrative
expenses related to underwriting)
Other ordinary income, net
Ordinary profit(Underwriting profit)

Extraordinarygains (losses)

Net IncomeRatios

Net loss ratio

56.7 ％

53.2 ％Net expense ratio

26.6 ％

26.6 ％％

Notes: 1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses)
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Ratios are calculated as follows:
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100

44. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the six months ended
September 30, 2017

For the six months ended
September 30, 2016
AmountComposition YoY Change%

Fire

117

Marine0.2

AmountComposition

102

0.2%
(41.2)YoY Change%%(12.1)－－－－－－

Personal accident

4,388

9.1

1.6

4,348

8.2

(0.9)

Voluntary automobile

43,814

90.7

3.2

48,664

91.6

11.1

－

－－－－－

48,319100.0

2.953,116100.0

9.9

Compulsory automobile liability
Total

Net Premiums Written(Millions of yen)

For the six months ended
September 30, 2017

For the six months ended
September 30, 2016
AmountComposition YoY Change%

AmountComposition%

YoY Change%%

Fire

120.0

(55.0)

80.0(37.5)

Marine(2)(0.0)(111.1)

( 0)

(0.0)

－

Personal accident

4,527

9.3

1.5

4,452

8.3

(1.6)

Voluntary automobile

43,686

89.3

3.2

48,545

90.3

11.1

709

1.4(0.5)

780

1.5

10.0

48,934100.0

2.9

53,786100.0

9.9

Compulsory automobile liability
Total

Net Losses Paid(Millions of yen)

For the six months ended
September 30, 2016
Amount

For the six months ended
September 30, 2017

YoY Change Net loss ratio%

AmountYoY Change2(45.3)

%%

%

Fire

4

491.3

Marine(11)(111.3)－3－－

Personal accident

1,228

1.7

30.1

1,361

10.8

33.7

Voluntary automobile

22,1755.1

58.9

22,915

3.3

54.4

Compulsory automobile liability
Total

119.6

Net loss ratio
235.0

649

3.3

91.6

655

0.9

83.9

24,046

4.4

56.7

24,937

3.7

53.2

5. Risk-monitored Loans
None56. Securities(1) Held-to-maturity securities(Millions of yen)
As of March 31, 2017

Fair value is higher
than balance sheet
amountFair value is lower
than balance sheet
amountAs of September 30, 2017

Balance sheet
amountFair value

Difference

Balance sheet
amountFair value

Difference

Japanese bonds(including JGBs)

71,76587,81016,04570,856

86,105

15,248Foreign securities

197

215

18197

214

16

Subtotal71,962

88,026

16,06371,05486,31915,264

Japanese bonds(including JGBs)

3,873

3,424(449)5,9965,420(575)

75,83691,451

15,614

77,05091,73914,688Total(2) Available-for-sale securities(Millions of yen)
As of September 30, 2017

As of March 31, 2017

Balance sheet
amount is higher
than acquisition
cost

Balance sheet
amount is lower
than acquisition
cost

Balance sheet
amountAcquisition
cost

Difference

Balance sheet
amountAcquisition
cost

Difference

Japanese bonds(including JGBs)

45,802

44,900181

38,736

38,634

102

Japanese stocks

2,046

529

1,517

2,101

441

1,660

Subtotal

47,12945,4301,698

40,83839,075

1,762Japanese bonds(including JGBs)

14,587

14,603(15)

23,634

23,667(33)

61,71660,033

1,683

64,47262,743

1,729

Total

6

7. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2017(A) Total non-consolidated solvency margin
Capital or treasury, etc.
Reserve for price fluctuations

As of September 30, 2017

46,72451,92826,43928,915

177

191

Contingency reserve

101105

Catastrophe reserve

17,542

19,246－－

1,514

1,556

Net unrealized gains on real estate－－

Excess refund reserve－－

Subordinated debt
The portion of the excess refund reserve and subordinateddebt that is not included in the margin
Deductible items－－－－－－

Others948

1,911

General reserve for possible loan losses
Net unrealized gains on other securities and net deferred gains(losses) on hedging instruments (before tax deductions)(B) Total non-consolidated risk
Ordinary insurance risk

22

(R1+R2) +(R3+R4) +R5+R6(R1)

12,786

13,243

11,37011,800Third-sector insurance risk

(R2)

－－

Assumed interest rate risk

(R3)

105

109

Asset management risk

(R4)

1,431

1,562

Business management risk

(R5)

278

290

(R6)
Major catastrophe risk(C) Non-consolidated solvency margin ratio

1,033

1,034

730.8 ％

784.1 ％[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on the provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Actof Japan and the Ministry of Finance Public Notice No. 50 of 1996.
<Non-consolidated Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity
on savings-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan, basedon its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicated by (A))
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:(1) Insurance underwriting risk
: Risk which exceeds the normal estimates for the rate of accident occurrence (excluding major(Ordinary insurance risk)
catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed when calculating
premiums(3) Asset management risk
: Risk arising from such factors as unexpectedly large fluctuations in prices on held securities andother assets(4) Business management risk
: Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

:Risk arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)

A non-life insurer’s ability to pay (total non-consolidated solvency margin), as indicated by such factors as its capital and reserves, is the total of theinsurer’s net assets (excluding the amount of expected outflow from the company), reserves (such as the reserve for price fluctuations andcatastrophe reserve) and a portion of its net unrealized gains on real estate.
The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurers. When
this ratio is 200% or higher, an insurer is judged to have sufficient ability to satisfy claims and other payments.

7