February 14, 2011
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Nine Months Ended December 31, 2010
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount

P.2(2) Annualized Premiums

P.2

2. Status of Investment Assets (General Account Assets)(1) Portfolio of General Account Assets

P.3(2) Fair Value Information on Securities

P.4(3) Fair Value Information on Monetary Trusts

P.6

3. Balance Sheets (Non-consolidated)

P.7

4. Statements of Income (Non-consolidated)

P.8

5. Reconciliation to Core Profit and Non-consolidated Ordinary Profit

P.9

6. Solvency Margin Ratio

P.10

7. Status of Separate Account Assets(1) Balance of Separate Account Assets

P.11(2) Policy Amount in Force (Separate Account)

P.11

8. Consolidated Summary(1) Key Performance Results

P.12(2) Scope of Consolidation and Companies Accounted for under Equity Method

P.12(3) Consolidated Balance Sheets

P.13(4) Consolidated Statements of Income

P.14

9. (Reference 1) Results for the Three Months Ended December 31, 2010

P.15

10. (Reference 2) Holdings of Securitized Papers and Other Sub-prime Related Investments P.19

1. Key Performance Results(1)Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of December 31, 2009

As of December 31, 2010

As of March 31, 2010

Category
NumberAmount% YoYchangeNumber% change fromMarch 31, 2010

Amount% YoYchange% change fromMarch 31, 2010

NumberAmountIndividual life
insurance
Individual annuities

4,886

329,472

5,214

106.7

105.2

341,980

103.8

103.1

4,954

331,641

54

3,021

59

108.4

106.2

3,219

106.5

105.0

55

3,066

Subtotal

4,940

332,494

5,273

106.7

105.2

345,199

103.8

103.1

5,010

334,707

Group life insurance－

11,206－－－

11,608

103.6

103.0

－

11,274

Group annuities

－

721

－

－

－

591

81.9

81.7

－

723

Notes:

1. Policy amounts for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments are to commence for policies
for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the nine months ended December 31, 2009

For the nine months ended December 31, 2010

Category
NumberIndividual life
insurance
Individual annuities

AmountNew policies

Increase fromconversion

NumberAmount% YoYchange% YoYchangeNew policies

Increase fromconversion

435

29,971

29,971

－

457

105.0

32,051

106.9

32,051

－

4

232

232

－

5

103.9

241

104.0

241

－

－

－

Subtotal

440

30,20430,204462

105.0

32,293106.9

32,293

Group life insurance

－

48

48

－

－

129

268.0

129

Group annuities

－

－

－

－

－

－

－

－

Notes:

1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums
Policy amount in force
Category(Millions of yen, %)As of December 31, 2009

As of
December 31,, 2010

As of March 31, 2010

Individual life insurance

556,098

586,076

105.4% change fromMarchh 31,M
31 2010104.1

Individual annuities

10,113

11,978

118.4

116.0

10,329Total
Of which, medical protection,living benefit protection, etc.

% YoY change

566,211

598,054

105.6

104.3

573,331

131,584

139,022

105.7

104.5

133,023

New policies(Millions of yen, %)Category

For the nine months ended
December 31, 2009

For the nine months
ended December 31, 2010

% YoY change

Individual life insurance

49,634

52,694106.2

Individual annuities

1,027

1,284

125.0

50,661

53,978106.5

12,251

12,688

103.6

Total
Of which, medical protection,living benefit protection, etc.

Notes:

563,002

1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection, etc” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.) andproducts with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

2

2. Status of Investment Assets (General Account Assets)(1) Portfolio of General Account Assets(Millions of yen, %)Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
Domestic bonds
Domestic stocks
Foreign securities
Foreign bonds
Foreign stocks and other securities
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

As of December 31, 2010
Amount%56,890－－－－280,0223,558,648
3,404,375
67,75871,27044,11027,15915,244
132,581
77,21430,58875,552(230)
4,211,269
25,178

Note: Real estate is the total of land, buildings and construction in progress.

3

1.4
－
－
－
－
6.6
84.5
80.8
1.6
1.7
1.0
0.6
0.4
3.1
1.8
0.7
1.8
(0.0)
100.0
0.6

As of March 31, 2010
Amount%116,442－－－－
288,772
3,188,812
3,032,933
72,52575,28549,91525,3708,067
127,599
79,91527,686
83,918(212)
3,912,935
21,724

3.0
－
－
－
－
7.4
81.5
77.5
1.9
1.9
1.3
0.6
0.2
3.3
2.0
0.7
2.1
(0.0)
100.0
0.6

(2) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)
Category

As of December 31, 2010
Net unrealized gains (losses)
Unrealized Unrealized
Fair value
gains
lossesCarrying
amountHeld-to-maturity securities
Policy reserve matching bonds

116,533-

121,110
-

4,576
-

-

-

-

-

890,973933,066
824,922859,943
51,77157,453
1,919
1,846
1,919
1,846
12,36013,822
3,759,234 3,917,861
3,650,919 3,795,596
51,77157,45344,18350,98744,18350,987
12,36013,822-42,09335,021
5,682
(72)
(72)
1,462
158,626
144,677
5,682
6,804
6,804
1,462
-

45,27436,188
7,614
1,472
166,385
150,420
7,614
6,877
6,877
1,472
-

3,181
1,166
1,932
72
72
10
7,758
5,743
1,932
72
72
10
-

2,868,261 2,984,794-

Stocks of subsidiaries andaffiliated companies
Available-for-sale securities
Domestic bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Money claims purchased
Certificates of deposit
Others
Total
Domestic bonds
Domestic stocks
Foreign securities
Bonds
Stocks, etc
Other securities
Monetary claims purchased
Certificates of deposit
Others-(Millions of yen)
As of March 31, 2010
Net unrealized gains (losses)
Unrealized Unrealized
Fair value
gains
lossesCarrying
amount2,275,629 2,255,176-(20,453)---

1,126,543 1,166,944
1,061,593 1,090,012
51,72362,183
8,084
8,010
8,084
8,010
5,140
6,738
3,402,172 3,422,120
3,295,318 3,295,356
51,72362,18349,98957,84349,98957,843
5,140
6,738
-

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

10,572

31,026----42,252
29,677
10,956
19
19

1,850
1,259
497
93
93
-

1,598

0

52,82432,323
10,956
7,947
7,947

32,87732,285
497
93
93

1,598

0

-

-

Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law of Japan.
2. Carrying amount and net unrealized gains/losses on monetary trusts, including items other than trading securities, amounted to ¥268,428 million and ¥13,137 million.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

b. Carrying amount of the securities without market value
Category(Millions of yen)
As of March 31, 2010

As of December 31, 2010

Held-to-maturity securities--

Unlisted foreign bonds

-

-

-

-

-

-

Stocks of subsidiaries and affiliated companies

15,847

15,847Available-for-sale securities

Others
Policy reserve matching bonds

26,73024,883

Unlisted domestic stocks (except OTC stocks)

442

Unlisted foreign stocks (except OTC stocks)

987

885

-

-

25,73923,95542,57840,731

Unlisted foreign bonds
OthersTotal

4

c. Fair Value Information consisting of those stated in the previous table-a and foreign exchange and other gains (losses) for table-b
As of December 31, 2010
Category

Held-to-maturity securities

Carrying
amount2,868,261 2,984,794

Policy reserve matching bonds-

116,533-

Stocks of subsidiaries and affiliated companies

15,847

15,847Available-for-sale securities

As of March 31, 2010

Net unrealized gains (losses)
Unrealized Unrealized
gains
lossesFair value(Millions of yen)

121,110

Carrying
amountNet unrealized gains (losses)
Unrealized Unrealized
gains
lossesFair value

2,275,629 2,255,176

4,576

-

-

-

-

-

-

15,847(20,453)-

15,847

10,572

31,026

-

-

-

-

-

-

917,703

956,104

38,40046,1617,760

1,151,426 1,188,138

36,711

42,946

6,234

Domestic bonds

824,922859,943

35,021

36,1881,166

1,061,593 1,090,012

28,41829,677

1,259

Domestic stocks

51,77657,458

5,682

7,614

1,932

51,76662,225

10,45910,956497

Foreign securities

2,906

2,700

(205)

-

205

8,970

8,809

(160)

19

180

1,919

1,846

(72)

-

72

8,084

8,010

(74)

19

93

Bonds
Stocks, etc.

987

854

(132)

Other securities

38,09936,002(2,097)

2,358

132

885

798

(86)

4,456

29,09527,090(2,005)

2,292

86
4,298

Money claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Others
Total
Domestic bonds

-

-

-

-

-

-

3,801,813 3,956,747

154,933

167,271

12,337

3,442,904 3,459,162

16,25853,51937,2613,650,919 3,795,596

144,677

150,420

5,743

3,295,318 3,295,356

37

32,32332,285

Domestic stocks

62,07667,758

5,682

7,614

1,932

62,066

72,525

10,45910,956497

Foreign securities

50,71857,390

6,672

6,877

205

56,42264,189

7,766

7,947

180

Bonds

44,18350,987

6,804

6,877

7,947

Stocks, etc

6,534

6,402

(132)

Other securities

38,09936,002(2,097)2,358

72

49,98957,843

7,853

132

6,433

6,346

(86)

4,456

29,09527,090(2,005)

93
-

2,292

86
4,298

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

5

(3) Fair Value Information on Monetary Trusts(Millions of yen)
As of December 31, 2010

Category

Monetary trusts

As of March 31, 2010

Net unrealized gains (losses)

Balance sheet
amountFair value

280,022280,022

Unrealized Unrealized
gains
losses---Balance sheet
amountNet unrealized gains (losses)
Fair value

Unrealized Unrealized
gains
losses288,772 288,772

-

-

-

Note: The table above includes ¥50 million yen of jointly invested monetary trusts.

Monetary Trusts for Investment(Millions of yen)
As of December 31, 2010

As of March 31, 2010

Category
Balance sheet amount

Net valuation gains (losses)-

Monetary Trusts for Investment

Balance sheet amount-

Net valuation gains (losses)

681

5,711

Note: Monetary trusts includes cash and call loans held in monetary trusts.

Monetary Trusts for Held-to-maturity, Policy Reserve Matching Securities and Others(Millions of yen)

As of December 31, 2010
Category

As of March 31, 2010

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesNet unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

－

－

－

－

－

-

-

-

-

-

Monetary trusts for policy reserve matching

－

－

－

－

－

-

-

-

-

-

266,835 279,972

13,137

13,137-285,525 288,039

Other monetary trusts

Note: Monetary trusts includes cash and call loans held in monetary trusts.

6

2,514

2,968

453

3. Balance Sheets (Non-consolidated)(Millions of yen)
As of December 31, 2010

As of March 31, 2010

AmountAmountAssets:Cash and deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)
Loans
Policy loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Accrued income tax
Lease obligations
Asset retirement obligations
OthersReserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations

25,59749,500280,022
3,921,241
3,448,124
12,27273,766
97,563
181,508
132,581
132,581
78,07815,591851
59,19730,588(230)
4,593,022

Reserve for price fluctuations
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings for the period
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

745,70791,800288,772
3,539,114
3,023,972
28,43399,351103,098
186,043
127,599
127,599
80,923
13,862
120
71,16527,686(212)
4,286,540

4,297,756
35,7184,256,795
5,242
1,206
549
38,07013,552290
630
23,597
17,006136
14,967
14,967693

4,012,112
21,424
3,985,610
5,076
1,445
716
55,501
16,943325

4,370,386

4,095,228

70,0005,865
5,865
131,609
11,278120,331
120,331207,474
16,659(1,499)15,160222,635
4,593,022

70,0005,865
5,865
101,464
9,878
91,58591,585
177,329
15,458(1,475)
13,982
191,3124,286,540

38,232
14,989
118
9,637
9,637
706

4. Statements of Income (Non-consolidated)(Millions of yen)
For the nine months ended
December 31, 2009

For the nine months ended
December 31, 2010

AmountOrdinary Revenues
Income from insurance premiums

Amount647,736
512,197
511,266
130,247
50,931
13,21914,55350,387
5,291
592,741
204,796
48,7795,027
26,680121,301
1,360
290,042
1,620
288,4173
16,36822
8,049(Insurance premiums)
Investment income(Interest income and dividends)(Income from monetary trusts, net)
(Gains on sale of securities)(Gains on separate accounts, net)

Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Profit
Extraordinary
E tdiLossesL669,199565,531563,654
94,71164,487
5,658
24,56470,995
10,53854,995
4 435
4,435
92
4
4,338
4,338

Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Loss on adjustment for changes of accounting standard
for retirement obligations
Provision for reserve for policyholders' dividends
Income before income taxes
Income taxes -current
Income taxes -deferred
Total Income Taxes
Net Income

2,009
48,54912,334
4,071
16,40532,144

8

8,956
603,066
209,760
56,154
5,286
30,112
115,273
1,310
285,491
14,293271,184
12
21,38543828
348
13,14773,221
13,20966,132
6,926
6 926
18
1,288
5,329
5,329
290
437
58,76825,408(3,762)
21,64637,121

5. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the nine months ended
December 31, 2009
Core profit

A

Capital gains
Income from monetary trusts, net
Income from trading securities, net

For the nine months ended
December 31, 2010

45,102

43,96221,50926,186

6,956

1,622

-

-

Gains on sale of securities

14,55324,564

Gains on derivatives, net--

Foreign exchange gains, net--

Other capital gains

-

-

9,272

1,449

-

-

Capital losses
Losses on monetary trusts, net
Losses on trading securities, net

-

-

8,049

828

Devaluation losses on securities-

348

Losses on derivatives, net

-

-

774

272

Losses on sale of securities

Foreign exchange losses, net

449-

Net capital gains

Other capital losses
B

12,237

24,736

Core profit plus net capital gains

A+B

57,34068,699--Gains from reinsurance--

Reversal of contingency reserve

-

-

Other

-

-

2,345

2,566

-

-

Other one-time gains

Other one-time losses
Losses from reinsurance

2,341

2,544

Provision for specific reserve for possible loan losses

Provision for contingency reserve

3

22

Provision for reserve for loan losses from borrowers in specific foreign countries--

Write-off of loans

-

-

Other

-

-

Net other one-time losses
Ordinary profitC(2,345)(2,566)

A+B+C

54,995

66,132

Notes:
1.Core profit for the nine months ended December 31, 2009 (A) includes income gains of ¥6,263 million in income from monetary trusts; other capital losses include impairment lossesof ¥449 million from investment partnership.
2.Core profit for the nine months ended December 31, 2010 (A) includes income gains of ¥4,036 million in income from monetary trusts.

96. Solvency Margin Ratio(Millions of yen)
Category
Total solvency margin

As of December 31, 2010

(A)

As of March 31, 2010

706,988630,237

Common stock, etc.

205,274

170,329

Reserve for price fluctuations

14,967

9,637

Contingency reserve

51,041

48,49700

Net unrealized gains on other securities multiplied by 90% if gains or 100% if losses

34,56033,040Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses

1,913

1,633

Excess amount of policy reserves based on Zillmer method

326,283

316,510

Unallocated portion of reserve for policyholders' dividends

3,619

2,346

Future profits

1,022

1,022

Deferred tax assets

68,30547,219Subordinated debt

－

－

－

－

47,577

47,792

19,86619,199

7,305

7,094

Reserve for possible loan losses

Deductible items
Total risk

(R1 + R8 ) + (R2 + R3 + R7 ) + R4
2

2

Insurance risk

(Ｂ)
R1

Third-sector insurance risk

R8

Assumed interest rate risk

R2

11,503

11,395

Asset management risk

R3

17,146

18,932Business management risk

R4

1,292

1,292

Minimum guarantee risk

R7

8,818

8,023

2,971.9%2637.3%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Notes: 1. The foregoing figures were calculated based on provisions in Articles 86 and 87 of the Insurance Business Law Enforcement Regulations andthe Ministry of Finance Announcement No. 50 (1996). (Excess amount of policy reserves based on Zillmer method were calculated based on Article
1-3-1 of the Ministry of Finance Announcement No. 50.)
2. Minimum guarantee risk was calculated based on the standardized approach.

10

7. Status of Separate Account Assets(1) Balance of Separate Account Assets(Millions of yen)
Category

As of December 31, 2010

Individual variable life insurance and individual variable annuities

As of March 31, 2010

381,753

373,604-－

381,753

373,604

Group annuities
Total separate accountNote: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

(2) Policy Amount in Force (Separate Account)(Number: Thousand, Amount: Millions of yen)

Individual variable life insurance
Category

As of December 31, 2010
NumberAs of March 31, 2010

AmountNumberAmountVariable life insurance (whole life type)530

6,797,444

511

6,622,140

Variable life insurance (limited term type)43

144,25842

141,951

Variable life insurance (term type)1

54,125

1

58,800575

6,995,828

556

6,822,892

Total
Note: Amounts include the rider portion.

Individual variable annuities

Category(Number: Thousand, Amount: Millions of yen)
As of December 31, 2010
NumberIndividual variable annuities

Amount28

Note: The figure indicated in the amount column is for annuity resources.

11

155,161

As of March 31, 2010
NumberAmount28

154,718

8. Consolidated Summary(1) Key Performance Results(Millions of yen)
Category

For the nine months ended
December 31, 2010

For the nine months ended
December 31, 2009

Ordinary Revenues

647,957

669,423

Ordinary Profit

54,87765,388Net Income

32,02636,378Category

As of December 31, 2010

Total assets

As of March 31, 2010
4,591,700

4,286,045(2) Scope of Consolidation and Companies Accounted for under Equity Method
Number of consolidated subsidiaries

1

Number of non-consolidated subsidiaries accounted for under equity method0

Number of affiliated companies accounted for under equity method212(3) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2010
AmountAs of December 31, 2010
AmountAssets:Cash and deposits

26,203

46,112

Call loans

49,50091,800

Monetary trusts

280,022288,772

Securities

3,919,209

3,538,090

Loans

132,601

127,615

Tangible fixed assets

78,09580,937

Intangible fixed assets

15,592

13,863Due from reinsurers

851

120

Other assets

59,246

71,239Deferred tax assets

30,607(230)

27,705(212)

4,591,700

4,286,045

4,298,003

4,012,335

Reserve for possible loan losses
Total Assets
Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies

35,721

21,425

4,257,039

3,985,833

5,242

5,076

1,206

1,445

Due to reinsurers

549

716

Other liabilities

38,10755,539Reserve for employees' retirement benefits,
17,009,14,991

Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities

136

118

14,967

9,637

14,967
-

9,637
0

693

706

4,370,673

4,095,492

70,00070,000Net Assets:
Common stock
Capital surplus

5,865

5,865

Retained earnings

130,227

100,825

Total shareholder's equity

206,092

176,690

Net unrealized gains on other securities, net of taxes

16,696(1,499)15,501(1,475)

(262)

(163)

Land revaluation, net of taxes
Foreign currency translation adjustments
Total valuation and translation adjustments

14,933

13,862

Total Net Assets

221,026

190,553

4,591,700

4,286,045

Total Liabilities and Net Assets

13(4) Consolidated Statements of Income(Millions of yen)
For the nine months ended
December 31, 2009

For the nine months ended
December 31, 2010

AmountAmountOrdinary Revenues

647,957

669,423

Income from insurance premiums

512,241565,582

Investment income

130,42451,083

94,88964,618(Interest income and dividends)(Income from monetary trusts, net)

13,2195,658(Gains on sale of securities)

14,57824,611(Gains on separate accounts, net)

50,387

Other ordinary income

-

5,291

8,950

Ordinary Expenses

593,080

604,034

Insurance claims and other payments

204,804

209,765

48,783
5,027

56,155
5,286(Insurance claims)(Annuity payments)(Insurance benefits)

26,68030,112(Surrender payments)

121,303115,276

290,065

285,521

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)

1,619

14,295

288,443

271,2123

1216,37021,471

22
8,054

43
828

(Devaluation losses on securities)-

348(Losses on separate accounts, net)-

13,147

Operating expenses

71,09873,341Other ordinary expenses

10,741

13,933

Ordinary Profit

54,877Extraordinary Gains
Gains on sale of fixed assets
Extraordinary Losses

65,388
-

0

-

0
6,926

4,435

Losses on sale or disposal of fixed assets

92

18

Impairment losses

4

1,288

4,338

5,329

4,338

5,329

Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Loss on adjustment for changes of accounting standard
for retirement obligations-

290

Provision for reserve for policyholders' dividends

2,009

437

Income before income taxes

48,43258,024

Income taxes -current

12,33425,408

Income taxes -deferred

4,071
16,405

21,646

Total Income Taxes
Income Before Minority Interests(3,762)-Net Income

32,026

14

36,37836,3789. (Reference 1) Results for the Three Months Ended December 31, 2010
(1) New Policy Amount(Number: Thousand, Amount: 100 millions of yen, %)For the three months ended
December 31, 2009
Category

NumberAmount

For the three months ended
December 31, 2010

NumberIncrease fromconversion

New policies% YoYchangeAmount% YoYchangeNew policies

Increase fromconversion

161

11,935

11,935

－

164

101.7

11,524

96.6

11,524

-

1

83

83

－

1

102.9

84

100.3

84

-

163

12,01912,019

－

166

101.7

11,60896.6

11,608-Group life insurance

－

8

8

-

-

39

438.7

39

Group annuities

－

－

－

-

-

-

-

Individual life insurance
Individual annuities
Subtotal

Notes:-

1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums for New Policies(Millions of yen, %)Category

For the three months ended
December 31, 2010

For the three months ended
December 31, 2009

% YoY
Change18,263

18,598

101.8

368

421

114.4

Total

18,631

19,020102.1

Of which, medical protection,living benefit protection, etc

4,536

4,717

104.0

Individual life insurance
Individual annuities

Notes:

1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coefficient that differs depending on the premium payment methods, thereby
converting the figure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)
2. “Medical protection, living benefit protection, etc.” indicates the portion of annualized premiums for medical protection benefits (hospitalization benefits, surgical procedure benefits, etc.)
and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).

15

(3) Statements of Income(Millions of yen)
For the three months ended
December 31, 2009

For the three months ended
December 31, 2010

AmountAmountOrdinary Revenues

216,046

233,088

Income from insurance premiums

172,838

194,490

172,786

193,634

38,65831,829(Interest income and dividends)

18,021

22,149(Income from monetary trusts, net)

3,620

1,312

(Insurance premiums)
Investment income(Gains on sale of securities)

4,791

95

(Gains on separate accounts, net)

12,203

8,272

Other ordinary income

4,550

6,767

Ordinary Expenses

197,491

216,995

Insurance claims and other payments

70,377

77,707(Insurance claims)

16,051

20,577(Annuity payments)

1,822

1,684

(Insurance benefits)

10,84614,158(Surrender payments)

40,57740,234(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)

508

485

93,499106,127-

12,88893,497

93,234

1

4

5,641

2,498

6

15

2,720

124

Operating expenses

23,45724,150

Other ordinary expenses

4,515

6,511

Ordinary Profit

18 555
18,55516 09316,093Extraordinary Losses

1,616

3,189

(Losses on sale of securities)

Losses on disposal of fixed assets

32

Impairment losses

0

1,287

Provision for reserve for price fluctuations

1,612

1,899

Provision for reserve for price fluctuations

1,612

1,899

Provision for reserve for policyholders' dividends

1,784

91

15,153

12,811

Income before income taxes
Income taxes -Current

6,402

5,906

Income taxes -Deferred(1,658)(1,233)

Total Income Taxes

4,743

4,673

Net Income

10,4108,13716

(4) Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the three months ended
December 31, 2009
Core profit

Ａ

Capital gains

For the three months ended
December 31, 2010

16,505

17,115

6,327

95

Income from monetary trusts, net

1,536

-

Income from trading securities, net--

Gains on sale of securities

4,791

95

Gains on derivatives, net--

Foreign exchange gains, net--

Other capital gains
Capital losses
Losses on monetary trusts, net
Losses on trading securities, net

-

-

3,393

234

-

-

-

-

2,720

124

Devaluation losses on securities--

Losses on derivatives, net--

Foreign exchange losses, net

604

109

Losses on sale of securities

Other capital losses
Net capital gains
Core profit plus net capital gains

67

-

Ｂ

2,934

(138)

Ａ＋Ｂ

19,44016,976

Other one-time gains--

Gains from reinsurance--

Reversal of contingency reserve

-

-

Other
Other one-time losses

-

-

885

883

-

-

881

879

Provision for specific reserve for possible loan losses

3

4

Provision for reserve for loan losses from borrowers in specific foreign countries--

Write-off of loans

-

-

Other

-

-

Losses from reinsurance
Provision for contingency reserve

Net other one-time gains (losses)
Ordinary profit

Ｃ

(885)

(883)

Ａ＋Ｂ＋Ｃ

18,55516,093

Notes:
1. Core profit for the three months ended December 31, 2009 (A) includes income gains of ¥2,083 million in income from monetary trusts; other capital losses include
impairment losses of ¥67 million from investment partnership.
2. Core profit for the three months ended December 31, 2010 (A) includes income gains of ¥1,312 million in income from monetary trusts.

17

(5) Consolidated Statements of Income(Millions of yen)
For the three months ended
December 31, 2009

For the three months ended
December 31, 2010

AmountAmountOrdinary Revenues

216,124

233,165

Income from insurance premiums

172,851

194,508

Investment income

38,72331,894

18,07022,190(Income from monetary trusts, net)

3,620

1,312

(Gains on sale of securities)

4,806

118

(Gains on separate accounts, net)

12,203

8,272(Interest income and dividends)

Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)

4,550

6,761

197,644

217,370

70,37977,70916,051

20,578(Annuity payments)

1,822

1,684

(Insurance benefits)

10,84614,158(Surrender payments)

40,57840,23593,506106,137

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)-

12,88993,504

93,243

1

4

5,665

2,583

6

15

2,720

125

Operating expenses

23,49024,188Other ordinary expenses

4,603

6,750

Ordinary Profit

18,48015,794Extraordinary Losses

1,616

3,189

(Losses on sale of securities)

Losses on disposal of fixed assets

32

Impairment losses

0

1,287

Provision for reserve for price fluctuations

1,612

1,899

Provision for reserve for price fluctuations

1,612

1,899

Provision for reserve for policyholders' dividends

1,784

91

Income before income taxes

15,07912,513

Income taxes -Current

6,402

5,906

Income taxes -Deferred(1,658)(1,233)

Total Income Taxes

4,743

4,673

Income Before Minority Interests-

Net Income

10,335

18

7,839
7,839

10. (Reference 2) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of December 31, 2010, are as follows.
Sony Life holds no sub-prime related investments.
(1) Special-purpose entities (SPEs)
Unrealized
gains (losses)
－
－
－
－
－
－
－

Fair value
－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Other
facilitated by Sony Life(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)

Fair value
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity(100 millions of yen)
Gains (losses)
Unrealizedrecorded ingains (losses)
income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(3) Other sub-prime (Alt-A exposure)
Fair value
－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other
19

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2010

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2010

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30 year notes with Nikkei 225 index linked coupon (fair market value of ¥491 billion andunrealized gains of ¥68 billion as of December 31, 2010). These amounts are included in “Net unrealized gains (losses) on othersecurities, (before taxes)” of Sony Life as of December 31, 2010.

20