Consolidated Financial Summary (Japanese GAAP)
for the Nine Months Ended December 31, 2010
February 14, 2011

Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index_en.html)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)1.

Consolidated financial results for the nine months ended December 31, 2010
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the nine months ended
December 31, 2010
For the nine months ended
December 31, 2009

Millions of yen% change

746,0173.5

720,708

13.2

Millions of yen

Net Income% change

Millions of yen% change

69,36618.9

38,382

13.4

58,34377.3

33,84364.5

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the nine months ended
December 31, 2010
For the nine months ended
December 31, 2009

17,647.14—

15,560.25—(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of December 31, 2010

6,435,967

301,120

4.7

138,446.05

As of March 31, 2010

6,001,088

269,439

4.5

123,880.11

Notes: 1. Shareholders’ equity:

As of December 31, 2010: ¥301,120 million
As of March 31, 2010: ¥269,439 million
2. The net asset ratio is computed by dividing the amount of total net assets by total assets at the end of the fiscal period.

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2010
For the year ending
March 31, 2011
For the year ending
March 31, 2011
(forecast)

1st quarterYen

2nd quarterYen

3rd quarter
Yen

—

0.00

—

—

0.00

—

Year-end
Yen

Annual Total
Yen

3,000.00

3,000.00

3,000.00

3,000.00

3. Forecast of consolidated financial results for the year ending March 31, 2011
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

Ordinary Profit

Millions of yen % change Millions of yen

For the year ending
March 31, 2011

994,000

1.5

78,000Net Income per
Share

Net Income% change(7.6)

Millions of yen

42,000% change(12.7)

Yen

19,310.34

4. Other Information(Note) Please refer to “2. Other information” on page 19, for details.
(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying
changes in scope of consolidation): None
(Note) This item indicates whether there were changes in significant subsidiaries affecting the scope of consolidation
during this period.
(2) Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements: Yes(Note) This item indicates whether there was adoption of simplified accounting methods and special accounting
methods for presenting quarterly consolidated financial statements.
(3) Changes in accounting policies, procedures and presentation(a) Changes due to revision of accounting standards: Yes(b) Changes due to other reasons: None
(Note) This item indicates whether there were changes of accounting policies applied, procedures and disclosures forpresenting quarterly consolidated financial statements, described in “Changes in Bases of Presenting Quarterly
Consolidated Financial Statements.”(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2010:
2,175,000 shares
As of March 31, 2010:
2,175,000 shares(b) Number of treasury shares
As of December 31, 2010:— shares
As of March 31, 2010:— shares(c) Weighted-average number of shares
For the nine months ended December 31, 2010:
2,175,000 shares
For the nine months ended December 31, 2009:
2,175,000 shares

Review of quarterly financial statements
・Audit procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the Financial
Instruments and Exchange Law of Japan. However, quarterly financial statements in these documents are not subject toquarterly review procedures.

Content of Supplemental Materials
I． Consolidated Operating Results for the Nine Months Ended December 31, 2010
1. Consolidated Operating Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
2. Operating Results of Main Subsidiaries・・・・・・・・・・・・・・・・・・・・・・・
3. Consolidated Financial Forecast for the Year Ending March 31, 2011 ・・・・・・・
4. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
II． Other Information
1. Changes in scope of consolidation during the period under review ・・・・・・・・・
2. Simplified accounting methods and accounting methods used specifically for quarterly
consolidated financial statements ・・・・・・・・・・・・・・・・・・・・・・
3. Changes in accounting policies, procedures and presentation・・・・・・・・・・・・
III． Consolidated Financial Statements
1. Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
2. Consolidated Statements of Income ・・・・・・・・・・・・・・・・・・・・・・・・・・・
3. Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
4. Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2
4
15
16
19
19
19
20
22
25
26

The Conference Call for explaining the SFH Group financial results will be held at 16:30, Feburuary 14, 2011.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on Feburuary 14, 2011, and its Q&A summary
later on Presentation Materials page on our website.
Also, on Feburuary 14, 2011, we will upload Guidance on the Value of Existing Business, a Component ofSony Life’s Market Consistent Embedded Value (MCEV), as of the end of December 2010.
Please see futher details at our website:
http://www.sonyfh.co.jp/index_en.html

1

I. Consolidated Financial Results for the Nine Months
Ended December 31, 2010

1. Consolidated Financial Results

Management Review

Consolidated ordinary revenues and ordinary profit for the nine months
ended December 31, 2010, increased year on year.

The Group’s life insurance business continued its stable growth, due tofavorable sales of mainstay death-protection type and third-sector
insurance products such as living benefit and nursing-care insurance.

The non-life insurance business enjoyed brisk sales. An ongoing upward
trend in the loss ratio for automobile insurance showed signs of slowing
during the quarter.

The banking business maintained some degree of interest spread owing
to a growing balance of loans, especially mortgage loans, which offset thenegative impact of lower interest rates.

2

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2010 (1)Ordinary revenues(Billions of yen)

Ordinary profit

746.0
720.7

+3.5 %

69.3（9 months）

669.4

+21.4

+3.3%

54.8

65.3

+10.5

+19.2%

Non-life
insurancebusiness

Ordinary revenues

50.9

55.6

+4.6

+9.1%

1.8

2.3

+0.5

+28.0%

22.9

22.4

(0.5)

(2.4%)

1.5

1.5

(0.0)

(1.9%)

(1.1)

(1.4)

(0.2)

+23.6%

0.0

0.1

+0.0

+47.6%

720.7

746.0

+25.3

+3.5%

Ordinary profit

58.3

69.3

+11.0

+18.9%Net income

33.8

38.3

+4.5

+13.4%

Ordinary profit
Ordinary revenues

Bankingbusiness

Ordinary profit
Ordinary revenues
Ordinary profit

Consolidated（9 months）

647.9

ChangeOrdinary profit

Ordinary revenues

FY10.3Q（9 months）

Ordinary revenues

Corporateandelimination

FY09.3Q

FY10.3Q（9 months）

Life
insurancebusiness

58.3+18.9%

FY09.3Q(Billions of yen)

09.12.31

10.3.3110.12.31

Change from 10.3.31

Total
assets5,804.3

6,001.0

6,435.9+434.8+7.2%

Net
assets

261.0

269.4

301.1

+31.6

+11.8%(Billions of yen)

Consolidated

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

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2010 (2) Life Insurance: Ordinary revenues and ordinary profit increased year on year, due tohigher income from insurance premiums associated with steady increases in the newpolicy amount and the policy amount in force, as well as higher interest income anddividends and gains on sale of securities on general account assets.
 Non-life Insurance: Ordinary revenues increased year on year, owing to an increase in

net premiums written, primarily for automobile insurance. The effect of a rising loss ratio,
driven by higher insurance claim payments for automobile insurance, was mitigated by adecrease in provision of catastrophe reserve. Consequently, ordinary profit increased due
to a rise in ordinary revenues and a decline in the net expense ratio.
 Banking: Ordinary revenues decreased year on year, owing mainly to a decrease in gains

on foreign exchange transactions. Ordinary profit decreased due primarily to an increasein general and administrative expenses, particularly system-related expenses, which
offset the positive impact of an increase in gross operating profit driven by improved
investment performance.
 Consolidated ordinary revenues, consolidated ordinary profit and consolidated net

income increased 3.5% year on year, to ¥746.0 billion, 18.9%, to ¥69.3 billion and 13.4%,
to ¥38.3 billion, respectively.

3

I. Consolidated Financial Results for the Nine Months
Ended December 31, 2010

2. Operating Results of Main Subsidiaries

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

647.7

+3.3%

Ordinary profit

669.1(Billions of yen)

FY09.3Q

FY10.3Q(9 months)(9 months)

Ordinary revenues

66.1+20.3%

647.7

669.1

+21.4

+3.3%

Income from insurance premiums

512.1

565.5

+53.3

+10.4%

Investment income(27.3%)

130.2

94.7

(35.5)

Interest income and dividends

50.9

64.4

+13.5

+26.6%

Income from monetary trusts, net

13.2

5.6

(7.5)

(57.2%)

Gains on sale of securities

14.5

24.5

+10.0

+68.8%

Gains on separate accounts, net

50.3

－

(50.3)(100.0%)

+1.7%

592.7

603.0

+10.3

Insurance claims and other payments

204.7

209.7

+4.9

+2.4%

Provision for policy reserve and others

290.0

285.4

(4.5)

(1.6%)

Investment expenses

Ordinary expenses

54.9

FY09.3Q

FY10.3Q（9 months）（9 months）(Billions of yen)Ordinary revenues and ordinary profit increased year onyear.
Income from insurance premiums increased due toincreases in the new policy amount and the policy amountin force.
Investment income decreased year on year due todeteriorated performance on separate account assets
which offset increases in interest income anddividends and gains on sale of securities.
Ordinary profit increased, due primarily to higher gains
from investment, net on general account assets.

16.3

21.3

+5.0

+30.7%

Losses on sale of securities

8.0

0.8

(7.2)

(89.7%)

Losses on separate accounts, net

－

13.1

+13.1

－

70.9

73.2

+2.2

+3.1%

Ordinary profit

54.9

66.1

+11.1

+20.3%Net income

32.1

37.1

+4.9

+15.5%

Operating expenses

09.12.31

10.3.3110.12.31

Securities

3,294.1

3,539.1

3,921.2+382.1

Policy reserves

3,880.7

3,985.6

4,256.7+271.1+6.8%

Total net assets

184.2

191.3

222.6

+31.3

+16.4%(Billions of yen)

Net unrealized gains onother securities
Total assets

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

ChangeSeparate account assets

4

Change from 10.3.31+10.8%

22.3

15.4

16.6

+1.2

+7.8%

4,143.4

4,286.5

4,593.0+306.4

+7.1%

351.8

373.6

381.7

+8.1

+2.2%

Overview of Performance:
Sony Life (Non-consolidated)(Billions of yen)

FY09.3Q

FY10.3Q(9 months)(9 months)(Reasons for changes)

ChangeNew policy amount

3,020.4

3,229.3+6.9%

Lapse and surrender amount

1,725.4

1,601.6(7.2%)

Lapse and surrender rate

5.31%

4.79%

(0.52pt)

Policy amount in force

33,249.4

34,519.9+3.8%Annualized premiums from newpolicies

50.6

53.9

+6.5%

Of which, third-sector
products

12.2

12.6

+3.6%

Annualized premiums frominsurance in force

566.2

598.0

+5.6%

Of which, third-sector
products

131.5

139.0

+5.7%

(Billions of yen)

FY09.3Q

FY10.3Q(9 months)

 Decreased due to the lowering lapse and surrender
rates in most products, mainly in term life insurance Increased, owing mainly to favorable sales of living
benefit insurance, endowment insurance and nursingcare insurance.
 Increased due primarily to an increase in interest
income and dividends, as well as gains on sale ofsecurities in line with the shift from investing in bonds
with short terms to maturity to those with ultralongterms.

Change(9 months)

Gains from investment, net(General account)

63.4

86.4

Core profit

45.1

43.9

(2.5%)

Negative spread

12.2

5.5

(54.9%)

Solvency Margin Ratio

 Increased, due mainly to favorable sales of family
income insurance, which is life insurance with disability
benefit.

+36.2%

09.12.31

10.3.3110.12.31

Change from
10.3.312,570.9%

2,637.3%

2,971.9%＋334.6pt

 Declined owing primarily to a change from the previous
year’s reversal of policy reserve for minimum
guarantee for variable life insurance to a provision in
the current period, despite increases in income frominsurance premiums and interest income anddividends.

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted forpolicy amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.

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

Sony Life Operating Performance (1)Number of New Policy and Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)<9 months>(Individual Life Insurance + Individual Annuities)<9 months>

New policy amount

Number of new policies

Annualized premiums from new policies

Of which, third-sector(Thousands of policies) (Billions of yen)(Trillions of yen)

4.0

440

462

53.9

500

413

50

3.22

3.5
3.0

+5.0%

2.99

3.02

47.7

50.6

+6.5%

400

+6.9%

40

300

2.5

30

2.0

200
20

1.5
1.0

100

0.5

FY08.3Q

FY09.3Q

10.3

12.2

FY08.3Q

FY09.3Q

12.6

0

0

0.0

+3.6%

10

FY10.3Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

FY10.3Q

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

5

Sony Life Operating Performance (2)Annualized Premiums from Insurance in Force

Number of Policy and Policy Amount in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)
Policy amount in force

Of which, third sector

Annualized premiums from insurance in force

Number of policies in force(Millions of policies)(Trillions of yen)(Billions of yen)

50

+6.7%

4.94

5.27

5.01

600

598.0

566.2

573.3
+5.6%

5

+5.2%

+4.3%

500

40
+3.8%

33.2

34.5

33.4

4
400

+3.1%

30

3
300

20

2

200
+5.7%

10

1

0

100

10.3.31133.0

09.12.31

10.3.31

139.0
+4.5%

0

0
09.12.31

131.5

10.12.31

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

10.12.31

Line item amounts are truncated below ¥100 million;
percentage change figures are roundedSony Life Operating Performance (3)Lapse and Surrender Rate*

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)＜Annual,1H, 9 months＞
Lapse and surrender rate
(Annual)

(%)
10

(%)

Lapse and surrender rate (1H)

3,000

+334.6 pt

Lapse and surrender rate
(9 months)

2,971.9
2,500

8

6.79

7.21

2,570.9

2,637.3

09.12.31

10.3.312,000(Annual)
6

4.95

5.31

(0.52pt)

4.79

1,500

(9months)
4

1,000
(1H)
2

3.11

3.27

3.11
500

0
FY08

FY09

0

FY10

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

6

10.12.31

Sony Life Operating Performance (4)Ordinary Profit<9 months>

Income from Insurance Premiums<9 months>(Billions of yen)(Billions of yen)

600

500

565.5
489.6

66.1

70
+20.3%

512.1

60+10.4%

54.9

50
400

40
300

30

30.2

200

20
100

10
0

0
FY08.3Q

FY09.3Q

FY08.3Q

FY10.3Q

FY09.3Q

FY10.3Q

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

Sony Life Operating Performance (5)Negative Spread(9 months)

Core Profit(9 months)(Billions of yen)(Billions of yen)

20

45.1

50

43.9
16.3

(2.5%)

40

15

12.2
30
(54.9%)

10

22.6
20

5.5
5
10

0

0
FY08.3Q

FY09.3Q

FY10.3Q

FY08.3Q

FY09.3Q

FY10.3Q

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

7

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

Number of Independent Agents(Number)(Number)

2,500

4,036

3,982

4,000

3,976

3,891

2,112

2,089

2,089

2,072

(60)

2,000

(17)

3,500
1,500

3,000
0

1,000
0

09.3.3109.12.31

10.3.3110.12.31

09.3.3109.12.31

10.3.3110.12.31* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

Sony Life Operating Performance (7)Breakdown of General Account Assets

3,032.9

77.5%

3,404.3

80.8%

Japanese stocks

72.5

1.9%

67.7

1.6%

From FY09-2Q to FY10-2Q, amounts for individual items
included in monetary trusts (Japanese government andcorporate bonds, CBs, Japanese stocks and other) had
been broken down into their original investment categories.
However, the balance of CBs and Japanese stocks includedin the monetary trusts was zero as of December 31, 2010.
Accordingly, we have reverted to the previous format,
which is in accordance with disclosure guidelines
stipulated by the Life Insurance Association of Japan.

Foreign securities

49.9

1.3%

44.1

1.0%

Note: Fair Value Information on Securities for Sony Life is on P17.

Foreign stocks

25.3

0.6%

27.1

0.6%

<Asset management review>

Monetary trusts

288.7

7.4%

280.0

6.6%

Japanese government and corporate bonds:
Continued to accumulate ultralong-term bonds during
FY10.3Q.

Policyholder loans

127.5

3.3%

132.5

3.1%

Real estate

79.9

2.0%

77.2

1.8%

Cash and call loans

116.4

3.0%

56.8

1.4%

10.3.3110.12.31(Billions of yen)AmountJapanese governmentand corporate bonds

Other
Total

%

Amount

%

119.4

3.0%

121.1

2.9%

3,912.9

100.0％

4,211.2

100.0％

8<Lengthened
asset duration><L
09. 3.31

13.6 years

10. 3.31

17.6 years

10.12.31

19.0 years

Japanese stocks: Maintained the ratio of stock holding
at the end of March 2009.

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(Billions of yen)

FY09.3Q

FY10.3Q(9 months)(9 months)

50.9

55.6

+4.6

+9.1%

Underwriting income

50.4

55.0

+4.5

+9.1%

Investment income

0.5

0.5

+0.0

+11.7%

49.1

53.2

+4.1

+8.4%

Underwriting expenses

37.1

40.4

+3.2

+8.8%

Investment expenses

0.0

－

(0.0)

(100.0%)

11.9

12.7

+0.8

+7.2%

Ordinary profit

1.8

2.3

+0.5

+28.0%Net income

1.1

1.4

+0.2

+19.5%

Ordinary revenues

55.6
+9.1%

50.9

Ordinary expenses

2.3+28.0%

Operating, general andadministrative expenses

1.8
FY09.3Q

FY10.3Q（9 months）（9 months）

Change(Billions of yen)Ordinary revenues and ordinary profit increased
year on year.
Ordinary revenues increased, due to an increase in
net premiums written led by a growing number of
in-force policies primarily for automobile insurance.
The effect of a rising loss ratio, driven by higher
insurance claim payments for automobile insurance, wasmitigated by a decrease in provision of catastrophe
reserve. Ordinary profit increased due to a rise in ordinary
revenues and a decline in the net expense ratio.

(Billions of yen)

09.12.31

10.3.3110.12.31

Underwriting reserves

57.0

58.1

63.2

+5.1

+8.9%

Total net assets

15.0

15.4

16.9

+1.4

+9.3%

Total assets

94.7

98.3

104.3

+5.9

+6.1%

Change from 10.3.31

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

Overview of Performance:
Sony Assurance(Reasons for changes)(Billions of yen)

FY09.3Q（9 months）

FY10.3Q（9 months）

ChangeDirect premiums written

50.1

54.5

+8.9%

Net premiums written

50.3

54.9

+9.1%

Net losses paid

25.3

29.3

+15.5%

1.3

1.8+33.4%Net loss ratio

56.3%

59.8%

+3.5ptNet expense ratio

25.5%

25.0%

(0.5pt)Combined ratio

81.8%

84.7%

+2.9ptUnderwriting profit

 Increased, owing to an increase in thenumber of policies in force for automobile
insurance.
 Increased, owing to a rising number of car
accidents.

 Decreased, due to increased net
premiums written which offset an increasein underwriting costs.

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.

09.12.31
Number of policies in force
Solvency margin ratio Increased, due to an increase in thenumber of policies in force for automobile
insurance.

Change from
10.3.3110.3.3110.12.31

1.25 million

1.27 million

1.36 million+0.08 million

1,031.7%

1,018.5%

1,010.8%(7.7pt)+6.8%

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.

9Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY09.3Q(9 months)

FY10.3Q(9 months)

Fire

215

120

(44.3%)

Marine－－－Personal accident*

5,187

5,339

+2.9%

Voluntary automobile

44,73149,136

+9.8%

－

－

－

50,13354,596+8.9%(Millions of yen)Compulsory
automobile liability
Total

Change(Millions of yen)

Net losses paid
(Millions of yen)

FY09.3Q(9 months)

FY10.3Q(9 months)

ChangeFire95(43.0%)

Marine(2)2－Personal accident*

5,360

5,507

+2.7%

Voluntary automobile

44,55748,934+9.8%

Compulsory
automobile liability

468

543

+16.0%

50,39354,993

+9.1%

Total

*SURE, medical and cancer insurance is included in personal accident.
FY09.3Q(9 months)

FY10.3Q(9 months)

ChangeFire00+172.4%

Marine2

10+371.6%

Personal accident*

1,106

1,179

+6.5%

Voluntary automobile

23,891

27,633+15.7%

Compulsory
automobile liability

399

502

+25.9%

25,39929,326+15.5%

Total

Line item amounts are truncated below ¥ 1 million;
Percentage change figures are rounded.

Sony Assurance Operating Performance (1)Ordinary Profit(9 months)

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance

Number of policies in force

Other(Billions of yen)

1.36

70

1.25

+9.0%

50.3

+9.1%

60

54.9
0.4

50

5.5

5.3

(Millions of policies) (Billions of yen)
3
1.4

1.2

2.3

2.5

0.5

+28.0%

1
2

40

0.8

30

0.6

1.8

1.5

48.9
44.5

1

20

0.4

10

0.2

0

0.5

0
FY09.3Q

0
FY09.3Q

FY10.3Q

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.

FY10.3Q

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

10

Sony Assurance Operating Performance (2)Reference
Net Expense Ratio +Earned/Incurred Loss Ratio
Net expense ratio

Combined Ratio(Net Expense Ratio + Net Loss Ratio)

Earned/Incurred loss ratio

Net expense ratio(%)

Net loss ratio

(%)

93.4

+2.4pt

100

90.2

91.9

100

91.0

+2.9pt

80

80

83.3

81.7

84.7

81.8

+2.9pt

68.4

60
63.5

60

65.5

65.8

40

20

57.2
55.0

+3.5pt

59.8

56.3

40

26.7

20

(0.5pt)

26.1

25.5

25.0

FY09.3Q

FY10.3Q

0

26.7

26.1

(0.5pt)

25.5

25.0

FY09.3Q

FY10.3Q

0
FY08

FY09

FY08

FY09

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.

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*Note that earthquake insurance and compulsory automobile liability

net premiums written.

insurance are excluded from the above calculation.

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

1,200
(7.7pt)1,031.7

1,018.5

1,010.8

800

400

0
09.12.31

10.3.3111

10.12.31

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

Ordinary profit(Billions of yen)

22.9

22.3

(2.3%)

2.2(1.2%)

2.3

FY09.3Q

FY10.3Q（9 months）（9 months）

FY10. 3Q
(9 months)

ChangeOrdinary revenues

22.9

22.3

(0.5)

(2.3%)

Gross operating profit

11.0

12.1

+1.1

+10.2%(3.6%)Net interest income

99

95

(0.3)

Net fees and commissions

0.0

(0.1)

(0.1)

－

Net other operating income

1.1

2.7

+1.6

+147.4%General andadministrative expenses

8.5

9.4

+0.9

+10.8%

Ordinary profit

2.3

2.2

(0.0)

(1.2%)Net income

1.3

1.2

(0.1)

(8.2%)Net operating profit

2.4

2.4

(0.0)

(0.5%)(Billions of yen)

Change from
10.3.3109.12.31

10.3.3110.12.31

Securities

783.2

880.1

952.3

+72.2

+8.2%

Loans

562.6

586.6

681.0

+94.3

+16.1%

Deposits

1,442.7

1,510.0

1,609.9

+99.9

+6.6%

Customer assets

1,543.8

1,610.0

1,711.6+101.5+6.3%

Total net assets

57.7

58.9

58.9

(0.0)

(0.1%)

0.1

0.9

0.7

(0.1)

(11.9%)

1,562.2

1,612.1

1,736.3+124.1+7.7%(Billions of yen)Ordinary revenues and ordinary profit slightly decreased
year on year.
Gross operating profit increased ¥1.1 billion year on year
due to an increase in net other operating income.
- Net interest income decreased ¥0.3 billion due to adecreased interest spread due to lower interest rates,
which offset an increase in interest income on loans led
by the growing balance of mortgages and other loans.
- Net other operating income increased ¥1.6 billion
reflecting improved investment performance.
Net operating profit remained at the same level, due toan increase in general and administrative expenses of¥0.9 billion which offset the positive impact of
an increase in gross operating profit.
Customer assets increased ¥101.5 billion from March 31,
2010, of which deposit balance increased ¥99.9 billion.

FY09.3Q(9 months)

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

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

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)(Billions of yen)

09.12.31

10.3.3110.12.31

Change from
10.3.31

Customer assets

1,543.8

1,610.0

1,711.6+101.5+6.3%

Deposits

1,442.7

1,510.0

1,609.9

+99.9

+6.6%

Yen

1,122.1

1,184.9

1,265.1

+80.1

+6.8%

Foreigncurrency

320.6

325.0

344.8

+19.8

+6.1%

Investment trusts

101.0

100.0

101.6

+1.6

+1.6%

562.6

586.6

681.0

+94.3

+16.1%

Mortgage loans

544.4

555.1

621.4

+66.3

+11.9%

Others

18.2

31.5

59.6

+28.0

+89.1%

769

796

840

+44

+5.5%

13.04%

12.09%

11.25%

Loans

Number of accounts(thousands)
Capital adequacy
ratio(*2)(domestic criteria)*1Customer assets increased ¥101.5 billion
from March 31, 2010, Foreign currency
deposit increased ¥19.8 billion under thecircumstance where sharp hike in the yen
might have the negative impact on theforeign exchange conversion.

 Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

(0.84Pt).

*1 Loans in others include corporate loans of ¥51.7 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P14.
Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

12

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis(Billions of yen)

FY09.3Q(9 months)

FY10.3Q(9 months)

11.0

12.1

+1.1

+10.2%

10.0

11.0

+0.9

+9.5%

Gross operating profit
Net interest income *1 ①

Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)(9 months)

ChangeGross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

Net fees andcommissions *2 ②

0.9

0.5

(0.3)

(36.8%)Net other operating
income *3

0.0

0.5

+0.4

+905.9%Gross operating profit(core profit) (A)
= ①＋②

11.0

11.6

+0.6

+5.6%

Operating expenses andother expenses ③

8.6

9.7

+1.1

+13.2%Net operating profit(core profit)= (A)－③

2.4

1.8

(0.5)

(21.6%)(Billions of yen)

11.0
10

+5.6%

11.6

+13.2%

9.7

8.6●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount 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 adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

5●Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

0

2.4

1.8

(21.6%)

FY09.3Q

FY10.3Q(9 months)(9 months)

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

Sony Bank Operating Performance (1)<Reference>＜参考＞ Interest Spread (Managerial Accounting Basis)
Interest spread

Yield on investment

Yield on financing

(%)

2.00

1.50

1.00

1.50

1.49

1.44

1.44

1.42

0.92

0.90

0.86

0.87

0.88

0.57

0.59

0.58

0.57

0.53

FY09.3Q

FY09.4Q

FY10.1Q

FY10.2Q

0.50

0.00

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.

13

FY10.3Q

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

Mortgage loans

Investment trusts(Billions of yen)
2,000

Loans

840
796

769

Others*Including corporate loans of ¥51.7 billion.

(Billions of yen)
800

+44

681.0
+94.3

1,711.6
1,543.8

1,610.0+101.5

1,500

59.6*

101.6

600

562.6

586.6

344.8

400
1,000

621.4

Deposits total:¥1,609.9 billion

1,265.1
200

500

0

0

09.12.31

10.3.3109.12.31

10.12.31

10.3.3110.12.31

Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts.

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

Balance of Securities by Credit Ratings
AAA
AA
BBB
BB
(Billions of yen)
1,200

A
Other

(%)

20

952.3

1,000

880.1
800

+72.2
15

783.2

(0.84pt)

13.04

600

10

12.09

11.25

10.3.3110.12.31

400
5

200

0

0
09.12.31

10.3.3109.12.31

10.12.31* 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.

Amounts are truncated below ¥100 million.

14

I. Consolidated Financial Results for the Nine Months
Ended December 31, 2010

3. Consolidated Financial Forecast for theYear Ending March 31, 2011

Consolidated Financial Forecast
for the Year Ending March 31, 2011
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09
ActualConsolidated ordinary revenues

FY10

FY10

Previous
Forecast

Revised
Forecast

ChangeFY10 revised forecast
vs. FY09 actual

Consolidated Ordinary Revenues

978.9

974.0

994.0

+ 1.5%

Life insurance business

882.0

871.3

890.9

+ 1.0%

Non-life insurance business

68.1

72.7

73.8

+ 8.3%

Banking business

30.5

30.6

29.5

(3.3%)

1,000(Billions of yen)
1,200

84.3

74.0

78.0

(7.6%)

800

Life insurance business

79.7

69.6

74.1

(7.1%)

600

Non-life insurance business

2.5

2.2

2.5

(2.5%)

Banking business

1.9

2.8

2.2

+ 14.1%

48.1

40.0

42.0

(12.7％)

Consolidated ordinary profit

Banking business
Non-life insurance businessLife insurance business

978.9(Revised
Forecast)

994.0

400
200

Consolidated net income

0※SFH’s consolidated financial forecast for the fiscal year ending March 31, 2011, has changed from those announced on May 13, 2010.

FY09 (Actual)

FY10 (Revised

Forecast)■Life insurance business
During the nine months ended December 31, 2010, operating results exceed our previous forecast. Accordingly, werevise upward our forecasts for ordinary revenues and ordinary profit for the year ending March 31, 2011, although
we expect increases in provision for policy reserves and operating expenses in FY10.4Q.

Consolidated Ordinary Profit(Billions of yen)100

■Non-life insurance business90

We revise upward our forecast for ordinary revenues and ordinary profit for the year ending March 31, 2011. During
the nine months ended December 31, 2010, ordinary revenues exceed our previous forecast, due to an increase in
net premiums written for our mainstay automobile insurance. The effect of a rising loss ratio was mitigated by adecrease in provision of catastrophe reserve. Ordinary profit moved upward due to an increase in ordinary revenues
and a decline in the net expense ratio.

80■Banking Business

40

Ordinary revenues and ordinary profit for the year ending March 31, 2011 are expected to decrease from theprevious announcement, of May 13, 2010, due mainly to a decrease in fees and commissions, reflecting the adverse
financial market environment. This decrease offsets the positive impact of a growing balance of mortgage loans anddeposits from customers.

Banking business
Non-life insurance businessLife insurance business

84.3

78.0

70
60
50

30
20
10
0
FY09 (Actual)

15(Revised
Forecast)(Revised

FY10 Forecast)I. Consolidated Financial Results for the Nine Months
Ended December 31, 2010

4. Appendix

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Variable Individual Annuity (3 types, 5 products)
Sales Channels: Lifeplanner sales employees and affiliated Banks (6*) As of February 14, 2011
Financial Highlights:
Number of new policies: 547, New policy amount: ¥5.4 billion (For the nine months ended December 31, 2010)
Number of policies in force: 991 policies, Policy amount in force: ¥11.6 billion (As of December 31, 2010)

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 29% of the amount of
new mortgage loans for FY10.3Q.
* Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY10.3Q.
* Sony Life started handling automobile insurance in May 2001.

16

Recent Topics 2<Highlights Since FY10.3Q>
2010-10-04

Sony Bank entered tie-up with Ohkuraya Juutaku in mortgage loans

2010-11-02

2010-11-08

Sony Life began offering new products: whole life nursing-care insurance (reduced surrender value), lumpsum payment nursing-care rider, and discount rider for nonsmokers and others in excellent health for
decreasing term life insuranceSony Bank began providing a service to accept dividends on investment trusts

2010-11-29

Sony Bank added six funds (monthly dividend type) to investment trusts lineup

2011-01-17

AEGON Sony Life Insurance began offering new variable individual annuity product, Catch Point, at SMBC

2010-01-24

Sony Bank added two funds (monthly dividend type) to its lineup of investment trusts. The bank began offering
the COMMONS 30 FUND, which previously was only sold directly by Commons Asset Management.

2010-02-01

AEGON Sony Life Insurance began offering new variable individual annuity product, Double Account, throughSony Life's Lifeplanner sales employees

2010-02-01

Sony Assurance introduced several revisions to its automobile insurance products, including to insurance

2011-02-07

AEGON Sony Life Insurance began offering new variable individual annuity product, Double Account, at
Juroku Bank

premiums and subdivisions of driving distance criteria.

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)Valuation gains (losses) on trading-purpose securities(Billions of yen)

09.12.31

10.3.31

Net valuation
Balance sheet gains (losses)
amountrecorded inincome0.3

5.6

10.6.30

10.9.30

10.12.31

Net valuation
Net valuation
Net valuation
Net valuation
Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses)
amountrecorded inamountrecorded inamountrecorded inamountrecorded inincomeincomeincomeincome
－

5.7

－

－

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.

17

－

－

－

－

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin(Billions of yen)
①Net Assets(B/S)

10.3.31②RealNet Assets

10.12.31

10.3.31③Solvency
Margin10.12.31

10.3.3110.12.31

Total shareholders’ equity

177.3

207.4

177.3

207.4

170.3

205.2

Net unrealized gains on other securities, net of taxes

Reserve for possible loan losses

15.4
－
(1.4)
－
－
－

16.6
－
(1.4)
－
－
－

15.4
－
(1.4)
9.6
48.4
－

16.6
－
(1.4)
14.9
51.0
－

－
33.0
－
9.6
48.4
0.0

－
34.5
－
14.9
51.0
0.0

Net unrealized gains on real estate

－

－

2.6

3.0

1.6

1.9

－
－
－
－
－
－
191.3

－
－
－
－
－
－
222.6

316.5
2.3
－
－
(20.4)
12.8
563.4

326.2
3.6
－
－
116.5
13.6
751.7

316.5
2.3
1.0
47.2
－
－
630.2

326.2
3.6
1.0
68.3
－
－
706.9

Net unrealized gains (losses) on available-for-sale securities
Land revaluation, net of taxes
Reserve for price fluctuations
Contingency reserve

Excess amount of policy reserves based on Zillmer method
Unallotted portion of reserve for policyholders' dividends
Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total※Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥583.8 billion as of March 31, 2010, and ¥635.2 billion as of December 31, 2010.

Notes③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax(Before revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

Sony Life’s Changes in Solvency Margin Ratio(Billions of yen)
Category

09.12.31

Total solvency margin(A)

Common stocks, etc

10.3.3110.6.30

10.9.3110.12.31

625.6

630.2

666.6

699.5

706.9

163.3

170.3

179.9

197.9

205.2

Reserve for price fluctuations

7.9

9.6

11.2

13.0

14.9

Contingency reserve

47.8

48.4

49.2

50.1

51.0

0.0

0.0

0.0

0.0

0.0

43.0

33.0

48.4

46.0

34.5

4.8

1.6

1.6

1.6

1.9

Excess amount of policy reserves based on Zillmer method

312.8

316.5

319.3

322.8

326.2

Unallotted portion of reserve for policyholders' dividends

1.7

2.3

2.7

3.1

3.6

-

1.0

1.0

1.0

1.0

Deferred tax assets

44.0

47.2

52.9

63.6

68.3

Subordinated debt

-

-

-

-

-

Deductible items

-

-

-

-

-

Reserve for possible loan losses
Net unrealized gains on other securities
multiplied by 90% if gains or 100% if losses
Net unrealized gains on real estate
multiplied by 85% if gains or 100% if losses

Future profits

Total risk
Insurance risk

(B)
R1

48.6

47.7

47.4

46.7

47.5

19.0

19.1

19.4

19.6

19.8

Third-sector insurance risk

R8

7.1

7.0

7.1

7.2

7.3

Assumed interest rate risk

R2

11.3

11.3

11.4

11.4

11.5

Asset management risk

R3

20.2

18.9

17.9

16.6

17.1

Business management risk

R4

1.3

1.2

1.2

1.2

1.2

Minimum guarantee risk

R7

7.8

8.0

8.3

8.6

8.8

2,570.9%

2,637.3%

2,810.0%

2,992.8%

2,971.9%

Solvency margin ratio [(A)/{(B)×1/2}]×100

Amounts are truncated below ¥100 million.

18

Ⅱ. Other Information
1. Changes in scope of consolidation during the period under review (changes in specified subsidiaries
accompanying changes in scope of consolidation)
Not applicable.
2. Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements(Simplified accounting methods)
Collectability of deferred tax assets
At certain consolidated subsidiaries, the collectability of deferred tax assets is determined based on earnings
forecasts and tax planning as of March 31, 2010, also taking into account temporary differences during the fiscal
period.
(Accounting methods used specifically for quarterly consolidated financial statements)
Not applicable.
3. Changes in accounting policies, procedures and presentation(Asset retirement obligations)
As ASBJ Statement No. 18 “Accounting Standard for Asset Retirement Obligations” (March 31, 2008) and
ASBJ Guidance No. 21 “Guidance on Accounting Standard for Asset Retirement Obligations” (March 31, 2008)
went into effect for fiscal periods beginning on or after April 1, 2010, SFH applied these guidelines from the threemonths ended June 30, 2010.
The adoption of these guidelines resulted in a decrease of ¥25 million in ordinary profit, a decrease of ¥316
million in net income before taxes, and an increase of ¥659 million in asset retirement obligations.

19

Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of December 31, 2010

As of March 31, 2010

AssetsCash and due from banks
Call loans and bills bought
Monetary claims purchased
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Reserve for possible loan losses¥83,985
59,500
293,154
4,946,499
814,074
79,21823,153
1,127
22,025888
2,699
95,39638,749(1,354)¥103,649
146,879
3,292
300,7434,488,458
714,486
81,931
20,687
1,503
19,184205
5,100
101,684
34,987(1,019)Total Assets¥6,435,967¥6,001,088

20

(Millions of yen)
As of December 31, 2010
Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends
Due to agencies
Due to reinsurers
Deposits
Call money and bills soldBorrowed money
Foreign exchanges
Other liabilities
Reserve for employees’ bonuses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities
Deferred tax liabilities
Deferred tax liabilities on land revaluation

As of March 31, 2010

¥4,380,454
54,894
4,320,317
5,242
1,206
639
1,608,516
20,0002,000
1586,353
1,476
18,062417
15,01015,006
3693¥4,088,186
39,151
4,043,958
5,076
1,445
853
1,509,295
10,0002,000
2090,6992,496
15,915
360
9,667
9,665
2
0
706

6,134,847

5,731,648

Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Total valuation and translation adjustments

19,900195,277
71,231
286,408
18,609(2,136)(1,499)(262)
14,711

19,900195,277
39,350254,527
17,511(960)(1,475)(163)
14,912

Total Net Assets

301,120

269,439¥6,435,967¥6,001,088

Total Liabilities
Net Assets

Total Liabilities and Net Assets21

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

For the nine months ended
December 31, 2010

Ordinary Revenues¥720,708¥746,017

Ordinary Revenues from the Life Insurance Business

646,856

668,031

Income from insurance premiums

511,859

565,053

Investment income(Interest income and dividends)

130,263

94,57150,92264,299(Income from monetary trusts, net)

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

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

50,387

-

4,732

8,406

50,94555,60150,41755,01550,39354,993

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)

23

22

511

571

517

585

7

3

(Transfer to interest and dividends on deposits of premiums)

(23)

(22)

Other ordinary income

17

14

22,90622,384

Investment income(Interest income and dividends)(Gains on sale of securities)

Ordinary Revenues from the Banking Business
Interest income

17,592

17,664(Interest income on loans)

8,918

9,251

(Interest income and dividends on securities)

8,291

8,317

Fees and commissions

1,463

1,424

Other operating income

3,832

3,268

3,556

2,258

17

26

(Gains on foreign exchange transactions, net)
Other ordinary income(Continued)

22

(Millions of yen)
For the nine months ended
December 31, 2009
¥662,365

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the nine months ended
December 31, 2010
¥676,651

592,784

603,696

204,804
48,783
5,027
26,680121,303
1,360

209,765
56,155
5,286
30,112
115,276
1,310(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses

290,065
1,619
288,443
3
16,20622
8,054
70,929285,521
14,295271,21212
21,31743828
348
13,147
73,113

Other ordinary expenses

10,778

13,978Underwriting expenses

48,80136,89852,96540,202(Net losses paid)(Loss adjustment expenses)(Net commission and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)
Investment expenses

25,399
2,981
683
1,551
6,283
13

29,326
3,541
734
1,446
5,153
-

12

-

11,876

12,72913

33

20,77919,989Interest expenses

7,651(Interest expenses on deposits)
Fees and commissions

6,347
893

8,126
6,567
910

Other operating expenses

2,709

489

General and administrative expenses

9,306

10,031

219

432

58,34369,366

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 portion of reserve for policyholders’ dividends
Investment expenses

Ordinary Expenses from the Non-life Insurance Business(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Expenses from the Banking Business

Other ordinary expenses
Ordinary Profit(Continued)

23

(Millions of yen)
For the nine months ended
December 31, 2009－

Extraordinary Gains

For the nine months ended
December 31, 2010

－

0
0

4,546
192

6,974
53

4

1,288

－

290

4,349

5,341

Provision for reserve for price fluctuations

4,349

5,341

Provision for Reserve for Policyholders’ dividends

2,009

437

Income Before Income Taxes

51,787

61,953

Income Taxes

17,943

23,571- Current

13,956

27,460- Deferred

3,986(3,889)Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Provision for special reserves

Income Before Minority Interests

38,382
33,843Net Income

24

38,382

3. Segment Information
As ASBJ Statement No.17 “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(March 27, 2009) and ASBJ Guidance No.20 “Guidance on Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (March 21, 2008) went into effect for fiscal periods beginning on or after April 1, 2010,
SFH applied these guidelines starting from the three months ended June 30, 2010.
(1) Outline of reportable segments
SFH Group’s reportable segments are components of the Group whose operating results are regularly reviewed by the Boardof Directors to make decisions about resources to be allocated to the segments and assess their performance, for which
discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make own business plans and engage in business activities from which it
may earn revenues and incur expenses, under the each legal regulations of the Insurance Business law of Japan, the Banking
law of Japan etc.
The SFH Group consists of three reportable segments, the life insurance business, the non-life insurance business, andthe banking business.
The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
The non-life insurance business consists of Sony Assurance Inc.

The banking business consists of Sony Bank Inc. and Sony Bank Securities Inc.
(2) Segment Information by reportable segment(i) For the nine months ended December 31, 2009
(Millions of yen)

Ordinary revenues
External customers
Intersegment
Total
Ordinary profit

Life insurance
business

Non-life
insurancebusiness¥646,856
1,101
647,957¥54,877¥50,9451
50,947¥1,809Bankingbusiness

Total¥22,90642
22,949¥1,584

Elimination

Consolidated¥ —(1,146)(1,146)¥72¥720,708—
720,708¥58,343¥720,708
1,146
721,854¥58,270(ii) For the nine months ended December 31, 2010
(Millions of yen)

Ordinary revenues
External customers
Intersegment
Total
Segment profit

Life insurance
business

Non-life
insurancebusiness¥668,031
1,391
669,423¥65,388¥55,6011
55,603¥2,316

Bankingbusiness¥22,384
23
22,408¥1,55325

Total¥746,017
1,416
747,434¥69,259

Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Ordinary profit in quarterly income statement(Millions of yen)¥69,2599
97¥69,366(3) Information on impairment losses on tangible fixed assets and goodwill for each reportable segment(Material impairment loss on tangible fixed assets)(Millions of yen)Life insurance
business
Impairment losses

Reportable Segments
Non-life
Banking
insurancebusinessbusiness¥1,288

¥—

¥—

Total

¥1,288Others¥—Consolidated¥1,288(Material changes in goodwill)
None(Material profit from negative goodwill)None

4. Per Share Information
Net income per share is based on the weighted-average number of shares of common stock outstanding during the period.
For the nine months ended December 31, 2009 and 2010, net income per share was ¥15,560.25 and ¥17,647.14. There wereno potentially dilutive securities. Net assets per share, based on the number of shares of common stock outstanding as ofMarch 31 and December 31, 2010, were ¥123,880.11 and ¥138,466.05.
The basis for this calculation for the nine months ended December 31, 2009 and 2010 is net income of ¥33,843
million and ¥38,382 million, the entire amounts of which are applicable to common stock. The weighted-average number ofshares outstanding for the nine months ended December 31, 2009 and 2010, was 2,175 thousand.

26

SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally
accepted in Japan. As such, these figures differ in significant respects from financial information reported
by SFH’s parent company, Sony Corporation, which prepares its financial statements in accordance withaccounting principles and practices generally accepted in the United States.
*SFH’s scope of consolidation for the nine months ended December 31, 2010, includes Sony Financial Holdings Inc., Sony Life Insurance
Co. Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, and Sony Bank Securities Inc. It also
includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method.
This scope of consolidation for the nine months ended December 31, 2009 does not include SA Reinsurance Ltd.

On February 3, 2011, Sony Corporation announced its consolidated financial results for the third quarter
ended December 31, 2010. SFH Group companies constitute the majority of Sony Group’s Financial
Services segment. However, the scope of Sony Group’s Financial Services segment differs from the scopeof SFH’s consolidated results. For the scope of Sony Group’s Financial Services segment, please refer tothe February 3, 2011, news release by Sony Corporation.
This Consolidated Financial Summary contains statements concerning the current plans,
expectations, strategies and beliefs of the Sony Financial Holdings Group (“SFH Group”). Anystatements contained herein that pertain to future operating performance and that are not historicfacts are forward-looking statements. Forward-looking statements may include—but are not limited
to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,”“predict,” and “possibility” that describe future operating activities, financial performance, events orconditions. Forward-looking statements, whether spoken or written, are based on judgments made by
the management of SFH Group based on information that is currently available to it. As such,forward-looking statements are subject to various risks and uncertainties, and actual results may vary
substantially from those expressed or implied in forward-looking statements. Consequently,
investors are cautioned not to place undue reliance on forward-looking statements. SFH Group
disclaims any obligation to revise forward-looking statements in light of new information, future
events or other findings.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp

Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

27