August 11, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Three Months Ended June 30, 2020

<Contents>

1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Non-consolidated Solvency Margin Ratio

P.6

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between
original Japanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets(Millions of yen)
As of March 31, 2020

As of June 30, 2020

Cash and deposits

28,671

29,149Call loans

10,00015,000

Securities

147,813147,276

Tangible fixed assets

1,266

1,076

Intangible fixed assets

14,845

14,860

Other assets

19,884

18,433

Deferred tax assets

12,38812,419Total Assets

234,870

238,217

179,511

182,569

Reserve for outstanding losses and claims

40,35438,199Underwriting reserves

139,157

144,369

14,101

12,546

Income taxes payable

1,808

2,289

Others12,292

10,256

Reserve for employees’ retirement benefits

1,972

2,024

Reserve for employees’ bonuses

1,231

588

Reserve under the special laws

268

275

Reserve for price fluctuations

268

275

197,085

198,003

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

13,76815,958

Total shareholders' equity

37,15839,348Net unrealized gains (losses) on available-for-sale securities, net of taxes

626

865

Total valuation and translation adjustments

626

865

37,78540,213234,870

238,217

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 three months ended
June 30, 2019
Ordinary Revenues

For the three months ended
June 30, 2020

31,86535,363

31,23335,04230,41832,868Interest and dividends on deposits of premiums

19

19

Reversal of reserve for outstanding losses and claims

795

2,154

628

305

Interest income and dividends

336

325

Gains on sale of securities

311－

Transfer to interest and dividends on deposits of premiums

(19)

(19)

4

14

27,97328,269Underwriting expenses

20,91820,705Net losses paid

14,18312,750Loss adjustment expenses

2,088

2,206

Net commissions and brokerage fees

475

537

Provision for underwriting reserves

4,170

5,211

7,054

7,560

0

3

3,891

7,093

Extraordinary Gains－－

Extraordinary Losses

25

7

Losses on disposal of fixed assets

180

Provision for reserve under the special laws

77

Provision for reserve for price fluctuations

77

Income Before Income Taxes

3,865

7,086

Income Taxes—Current

1,087

2,114

Income Taxes—Deferred6(124)

Total Income Taxes

1,093

1,990

Net Income

2,772

5,095Underwriting income
Net premiums written

Investment income

Other ordinary income
Ordinary Expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit3

3. Financial Summary(Millions of yen)
For the three months ended For the three months ended
June 30, 2019
June 30, 2020

YoY change(Amount)

YoY change(%)

Gross direct premiums written

30,34732,927+2,580+8.5

Direct premiums written

30,34732,927+2,580+8.5

31,23335,042+3,809+12.2

30,41832,868+2,450+8.1

Underwriting expenses

20,91820,705(212)(1.0)

Net losses paid

14,18312,750(1,432)(10.1)

Loss adjustment expenses

2,088

2,206+117+5.6

475

537+61+12.9

628

305

(322)

(51.3)

Interest income and dividends

336

325

(10)

(3.2)

Gains on sale of securities

311

－

(311)

(100.0)－－－－Operating, general and administrative expenses

7,054

7,560+506+7.2

Operating, general and administrative
expenses related to underwriting

7,037

7,547+509+7.2

411+7+186.2

3,891

7,093+3,201+82.3

3,276

6,788+3,512+107.2

Extraordinary Gains－－－－Extraordinary Losses

257(18)(71.6)

Extraordinary gains (losses), net(25)

(7)

+18

－

Income Before Income Taxes

3,865

7,086+3,220+83.3

Income Taxes –Current

1,087

2,114

+1,027+94.5

Income Taxes –Deferred6(124)(130)(2,079.1)

Total Income Taxes

1,093

1,990+896+82.0

Net Income

2,772

5,095+2,323+83.8

Net loss ratio

53.5%

45.5%

Net expense ratio

24.7%

24.6%

Adjusted ordinary profit

4,865

8,154+3,289+67.6

E.I. loss ratio

56.3%43.9%

Underwriting income
Net premiums written

Net commissions and brokerage fees
Investment income

Investment expenses

Other ordinary income (losses), net
Ordinary Profit
Underwriting profit

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. Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written x 100
3. Net expense ratio = (Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100
4. Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve＊Provision for catastrophe reserve is described as positive amount.
5. E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses and claims + Loss adjustment expenses) / Earned premiums x 100＊Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.

44. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the three months ended
June 30, 2019
AmountComposition

For the three months ended
June 30, 2020
AmountYoY change%

Composition%

YoY change%

%

Fire

374

1.2

+582.7952

2.9

Marine－－－－－－Personal accident

2,277

7.5

+5.3

2,223

6.8

(2.4)

Voluntary automobile

27,69591.3+4.2

29,752

90.4+7.4

Compulsory automobile liability

Total+154.3

－－－－－

－

30,347

100.0

+5.4

32,927100.0+8.5Net premiums written(Millions of yen)

For the three months ended
June 30, 2019
AmountComposition

1970.6

For the three months ended
June 30, 2020

YoY change%

Fire

AmountComposition

543

1.7%
+3,985.5

YoY change%%+175.3－－－00.0－

Personal accident

2,244

7.4

+1.0

2,294

7.0

+2.2

Voluntary automobile

27,62190.8+4.1

29,661

90.2

+7.4

354

1.2

+18.1

368

1.1

+3.9

30,418

100.0

+4.7

32,868100.0+8.1

MarineCompulsory automobile liability

Total

Net losses paid, net loss ratio(Millions of yen)

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

AmountYoY change

Net loss ratio

3+96.6

Marine(3)(321.8)－Personal accident

763

+10.5

37.2

13,097+8.7

54.7

11,598(11.4)

46.2

323(1.6)

91.2

327+1.3

89.0

14,183+8.5

53.5

12,750(10.1)

45.5%
Fire

Voluntary automobile
Compulsory automobile liability

Total

AmountYoY change

19+497.1

7.30－

29.2

804+5.4

38.8%
8.3

5Net loss ratio%%

5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2020

As of June 30, 2020

66,67475,121

34,252

39,348Reserve for price fluctuations

268

275

Contingency reserve

131

133

Catastrophe reserve

27,86028,922(A) Total non-consolidated solvency margin
Capital or treasury, etc.

General reserve for possible loan losses
Net unrealized gains (losses) on available-for-sale securities and net
deferred gains (losses) on hedging instruments (before tax deductions)
Net unrealized gains (losses) on real estate

－－

783

1,081－－

Excess refund reserve－－

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

－－－－

3,379

5,360

15,286

15,446

Others(B) Total non-consolidated risk

(R1+R2)2+(R3+R4)2+R5+R6

Ordinary insurance risk

(R1)

13,711

13,887

Third-sector insurance risk

(R2)

00

Assumed interest rate risk

(R3)

132

134

Asset management risk

(R4)

1,829

1,709

Business management risk

(R5)

335

336

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

1,100

1,100872.3 %972.6 %[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and the Ministry of Finance Public Notice No. 50 (1996).
A part of calculations for non-consolidated solvency margin ratio as of June 30, 2020 is calculated according tosimplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of March 31, 2020.

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