Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2011

Sony Financial Holdings Inc.
August 12, 20110

Content■Consolidated Operating Results for the Three Months Ended June 30, 2011

P.2

■Consolidated Financial Forecast for the Year Ending March 31, 2012

P.27

■ Appendix

P.29

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performanceand that are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited
to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and “possibility” that describe future
operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, arebased on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary
substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned
not to place undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.

1

Content1

Consolidated Operating Results for
the Three Months Ended June 30, 20112

2

Management Review

For the three months ended June 30, 2011, consolidated ordinary
revenues increased and consolidated ordinary profit was nearly flat year
on year. The damage from the Great East Japan Earthquake on ouroperating results was limited.

The life insurance business continued to grow in its policy amount in force,due to favorable 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. The last year’s
upward trend in the loss ratio for automobile insurance showed signs ofslowing in this first quarter.

The banking business has improved its interest spread along with agrowing balance of mortgage loans under unfavorable business conditionsof low interest rates.

3

During the three months ended June 30, 2011, we reviewed consolidated
operating results as follows.
Consolidated ordinary revenues increased and consolidated ordinary
profit was nearly flat year on year. The damage from the Great East
Japan Earthquake on our operating results was limited.
The life insurance business continued to grow in its policy
amount in force, due to favorable sales of mainstay death-protection type
and third-sector insurance products such as living benefit and nursingcare insurance.
The non-life insurance business enjoyed brisk sales. The last year’s
upward trend in the loss ratio for automobile insurance showed signs ofslowing in this first quarter.
The banking business has improved its interest spread along with agrowing balance of mortgage loans under unfavorable businessconditions of low interest rates.

3

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2011 (1)FY10.1Q

FY11.1Q

214.1

Ordinary profit
Ordinary revenues(Billions of yen)

Ordinary revenues

Ordinary profit

+6.8%

256.8

Intersegment
adjustments*

FY10.1Q

18.5

17.6

(0.9)

(4.9%)

19.0

20.4

+1.4

+7.4%

Ordinary profit

0.4

0.7

+0.3

+67.7%

Ordinary revenues

7.7

7.4

(0.3)

(4.0%)

Ordinary profit

0.5

0.8

+0.3

+74.8%

(0.4)

(0.4)

(0.0)

+7.5%
+17.2%

Ordinary revenues

0.0

0.0

+0.0

240.5

256.8

+16.2

+6.8%

Ordinary profit

19.5

19.3

(0.2)

(1.1%)Net income

10.3

10.8

+0.5

+4.9%

Ordinary profit
Ordinary revenues

19.3
Consolidated

19.5

+7.1%

Non-life
insurancebusiness
Bankingbusiness(1.1%)

229.3

Ordinary revenues

240.5

FY11.1Q(Billions of yen)

Change+15.1

Lifeinsurancebusiness(Billions of yen)

10.6.30

11.3.3111.6.30

Change from 11.3.31

Total
assets

6,085.4

6,597.1

6,705.6+108.4

+1.6%

283.0

294.8

309.6

+14.7

+5.0%

Consolidated
Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.1Q: ¥20.1 billion, FY11.1Q: ¥23.4 billion yen
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

During the three months ended June 30, 2011, consolidated ordinary
revenues increased 6.8% compared with the same period of the previous
fiscal year, to ¥256.8 billion, owing to increases in ordinary revenues fromthe life insurance and the non-life insurance businesses, although therevenues were down in the banking business.
Consolidated ordinary profit decreased 1.1% year on year, to ¥19.3 billion.
By business segment, ordinary profit from the life insurance businessdecreased, whereas ordinary profit from the non-life insurance and thebanking businesses increased year on year.
Net income was up 4.9% year on year, to ¥10.8 billion.

4

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2011 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income from insurance

premiums associated with a steady increase in the policy amount in force. Ordinary profit decreasedslightly due to lower gains on sale of securities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, which offset the positive impact of a partial reversal ofreserve for outstanding claims, which was accumulated after the Great East Japan Earthquake ofMarch 2011, and a decrease in provision of policy reserves for minimum guarantees for variable life
insurance.
 Non-life Insurance: Ordinary revenues increased year on year, due to increased net premiums written,

as the number of insurance policies in force grew primarily for automobile insurance. Ordinary profit
increased owing primarily to a rise in ordinary revenues and a lower provision of reserve foroutstanding losses.
 Banking: Ordinary revenues decreased, owing mainly to a decrease in gains on foreign exchangetransactions. Ordinary profit increased due to an increased gross operating profit reflecting a decrease
in interest expenses on yen deposits and an increase in interest income on loans led by the growing
balance of mortgage loans. The increase in gross operating profit offset the negative impact of higher
general and administrative expenses led primarily by personnel reinforcement of the full-scale entry
into credit card business.
 Consolidated ordinary revenues increased 6.8% year on year, to ¥256.8 billion, however, consolidated

ordinary profit decreased 1.1%, to ¥19.3 billion. Net income increased 4.9%, to ¥10.8 billion

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

FY10.1Q

FY11.1Q

214.1

229.3

+15.2

Income from insurance premiums

182.6

194.6

+11.9

+6.6%

Investment income

30.3

29.0

(1.3)

(4.3%)

Interest income and dividends

20.5

23.2

+2.6

+13.0%

Income from monetary trusts, net

2.3

1.3

(1.0)

(43.6%)

Gains on sale of securities

7.4

0.5

(6.9)

(93.1%)

Gains on separate accounts, net

－

3.9

+3.9

－

195.2

211.3

+16.1

+8.3%

(Billions of yen)

Ordinary profit
Ordinary revenues

+7.1%

229.3

214.1

Ordinary expenses

17.9(4.9%)

18.8

FY10.1Q

FY11.1Q(Billions of yen)Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased due to a steadyincrease in the policy amount in force.
Investment income decreased mainly due to lower gains on saleof securities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, which offset thepositive impact of higher interest income and dividends
in the general account assets.
Ordinary profit decreased slightly due mainly to lower gains on saleof securities, which offset the positive impact of a partial reversal ofreserve for outstanding claims, which was accumulated after the

Change+7.1%

Insurance claims and other payments

67.7

71.3

+3.5

+5.3%

Provision for policy reserves and others

67.2

108.1

+40.8

+60.8%

Investment expenses(90.6%)

32.9

3.0(29.8)

Losses on sale of securities

0.4

0.4

(0.0)

(9.1%)

Losses on separate accounts, net

30.0

－

(30.0)(100.0%)Operating expenses

23.8

25.1

+1.2

+5.2%

Ordinary profit

18.8

17.9

(0.9)

(4.9%)Net income

10.1

10.1

+0.0

+0.1%

10.6.30

11.3.3111.6.30

Change from 11.3.31

Securities

3,646.2

4,017.5

4,119.0+101.4+2.5%

Policy reserves

4,052.1

4,371.4

4,479.6+108.1+2.5%

Total net assets

205.2

215.3

228.4

+13.0

+6.1%

26.2

7.0

18.9

+11.9

+170.4%

4,343.1

4,723.3

4,807.7

+84.3

+1.8%

349.4

398.1

408.6

+10.5

+2.6%

(Billions of yen)

Net unrealized gains on other securities

Great East Japan Earthquake of March 2011, and a decrease inprovision of policy reserves for minimum guarantees for variable life
insurance.

Total assets
Separate account assets

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

6

Highlights of Sony Life’s operating performance (non-consolidated basis) are shown here.
Sony Life’s ordinary revenues increased 7.1% year on year, to ¥229.3 billion. Income frominsurance premiums increased owing to a steady increase in the policy amount in force.
Income from insurance premiums grew 6.6% from the same period of the previous fiscal
year, to ¥194.6 billion.
Investment income decreased 4.3% year on year, to ¥29.0 billion, mainly due to lower
gains on saleof securities, which offset the positive impact of an improved investment performance on
separate account assets and higher interest income and dividends in the general accountassets.
Investment expenses decreased 90.6% year on year to ¥3.0 billion due mainly to theimproved investment performance on separate account assets.
Ordinary profit decreased 4.9% year on year to ¥17.9 billion, owing to lower gains on saleof
securities, which offset the positive impact of a partial reversal of reserve for outstanding
claims, which was accumulated after the Great East Japan Earthquake of March 2011,
and a decrease in provision of policy reserves for minimum guarantees for variable life
insurance.
Consequently, net income remained on the same level as a year earlier, at ¥10.1 billion.

6

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

FY10.1Q

New policy amount
Lapse and surrender amount

FY11.1Q

Change1,065.3

1,054.4(1.0%)

527.8

530.3

+0.5%

Lapse and surrender rate

1.58%

1.53%

(0.05pt)

Policy amount in force

33,819.2

35,073.4+3.7%

Annualized premiums from new policies

18.1

17.1

(5.1%)Of which, third-sector products

4.1

4.2

+2.5%

582.4

611.5

+5.0%

Annualized premiums from insurance in force
Of which, third-sector products

135.0(Billions of yen)

FY10.1Q

143.1
FY11.1Q+6.0%
ChangeGains from investment, net (General account)

27.4

21.9

Core profit

11.7

19.2

+62.9%

Negative spread

2.6

1.3

(50.0%)

Solvency Margin Ratio(Reasons for changes)
 Decreased, due mainly to lower sales of family
income insurance, which is life insurance withdisability benefit.
 Decreased due to the lowering lapse andsurrender rates, mainly in family income insurance,
which is life insurance with disability benefit.
 Decreased, due mainly to lower sales of
educational endowment insurance and cancer
hospitalization insurance.
 Increased, due mainly to higher sales of nursingcare insurance and living benefit insurance(20.0%)

10.6.30

11.3.3111.6.30

Changefrom
11.3.312,810.0%2,900.1%

3,024.0%+123.9pt

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, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

 Decreased due to lower gains on sale of securities
despite an increase in interest income anddividends.
 Increased reflecting the positive impact of a partial
reversal of reserve for outstanding claims, which
was accumulated after the Great East Japan
Earthquake of March 2011, a decrease inprovision of policy reserves for minimum
guarantees for variable life insurance, and a
decline in negative spread.

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

7

Here is an overview Sony Life’s performance.

7

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

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount(Trillions of yen)

Number of new policies(Thousands of policies)

155(3.6%)Of which, third-sector(Billions of yen)

150

144

Annualized premiums from new policies

20

15,0001.5

18.1(5.1%)

17.1

16.0
1.05

1.06
10,000
1.0

15

100

0.93

(1.0%)

10

5,000
0.5
+2.5%

5

0

0
FY09.1Q

FY10.1Q

FY11.1Q

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

3.9

4.1

4.2

FY09.1Q

FY10.1Q

FY11.1Q

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

8(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities decreased 1.0% year on year, to ¥1,054.4 trillion, due mainly to
lower sales of family income insurance, which is life insurance withdisability benefit. However, sales of term life insurance, living benefit
insurance and nursing-care insurance increased.
The number of new policies decreased 3.6% year on year, to 150
thousand policies.
(Right-hand graph)
Annualized premiums from new policies decreased 5.1%, to ¥17.1 billion,
due mainly to lower sales of educational endowment insurance andcancer hospitalization insurance. Of which, third-sector insurance
products such as living benefit and nursing-care insurance increased
2.5% year on year, to ¥4.2 billion reflecting favorable sales of those
products.

8

Sony Life Operating Performance (2)Number and Amount of Policies in Force

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

Policy amount in force

Number of policies in force

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)
+6.4%
50

5.09

5.34

5.42

(Billions of yen)

+1.5%

700

+5.0%
5
600

40

+3.7%

33.8

35.0

34.7

4

611.5

604.7

582.4

+1.1%

500

+0.9%
30
3

400

300

20
2

200

+6.0%
10

1
100

0

0

10.6.30

11.3.3111.6.30

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

135.0

140.7

10.6.30

11.3.31

+1.7%

143.1

0

11.6.30

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

9(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities grew steadily, to ¥35 trillion as of June 30, 2011, up
3.7% from June 30, 2010. The number of policies in force increased 6.4%
from June 30, 2010, to 5.42 million policies.
(Right-hand graph)
Annualized premiums from total policies as of June 30, 2011, were up
5.0% from June 30, 2010 totaling ¥611.5 billion. Of this amount, the figure
for third-sector products was up 6.0% from June 30, 2010, to ¥143.1
billion.

9

Sony Life Operating Performance (3)Lapse and Surrender Rate*

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)
（％）
（％）

10

Lapse and surrender rate
（3M）

Lapse and surrender rate
（Annual）

3,500+123.9pt

8

3,000

7.21

2,810.0

3,024.02,900.1

6.41
6
2,500

<Reference>
New solvency margin ratio effective
as of the end of FY11

March 31, 2011 : 1,720.0%
June 30, 2011 : 1,833.5%

4

1.67
2

1.58

(0.05pt)

1.53

2,000

Variation factor from the previous standard ：◆Change of includable amount for margin calculation◆Stricter risk measurement standards

1,500
0

0
FY09

FY10

FY11.1Q*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.

10.6.30

11.3.3111.6.30

Note:
Legislation concerning the calculation of the solvency margin ratio has been revised fromthe standpoint of raising its credibility, and these new standards are to become effective asof the end of fiscal 2011 (March 31, 2012). The above-stated figures are calculated on theassumption that these changes are applied at March 31and June 30, 2011.
* New solvency margin ratio for Sony Life is also on P 34.

Percentage change figures are rounded

10(Left-hand graph)
The lapse and surrender rate for the year three months ended June 30,
2011 decreased 0.05 percentage point year on year, to 1.53%, due
mainly to the lowering lapse and surrender rates primarily for family
income insurance, which is life insurance with disability benefit.
(Right-hand graph)
As of June 30, 2011 , Sony Life’s solvency margin ratio was 3,024.0%,
up 123.9 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reasons forthe decrease from the current standard are a change of includable
amount for margin calculation and stricter risk measurement standards.

10

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

Ordinary Profit(Billions of yen)

194.6
200

30

182.6
165.9

+6.6%

20.7

17.9

18.8

20

(4.9%)

100

10

0

0
FY09.1Q

FY10.1Q

FY11.1Q

FY09.1Q

FY10.1Q

FY11.1Q

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

1111

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)

19.2
20

20

16.5

+62.9%

15

15

11.7
10

10

5

5

4.5
2.6

0

(50.0%)

1.3

0
FY09.1Q

FY10.1Q

FY11.1Q

FY09.1Q

FY10.1Q

FY11.1Q

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

12(Left-hand graph)Core profit increased 62.9% to ¥19.2 billion year on year, reflecting
positive impact of a partial reversal of reserve for outstanding claims,
which was accumulated after the Great East Japan Earthquake ofMarch 2011, a decrease in provision of policy reserves for minimum
guarantees for variable life insurance, and a decease in negative spread.
(Right-hand graph)
In line with the increase in interest income and dividends, the negative
spread declined 50.0% year on year, to ¥1.3 billion.

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

4,036

2,500

4,021

4,017

3,975

4,000

2,089

2,064

2,064

2,034

2,000

(42)

(30)

1,500

3,500

1,000

500

3,000
0

0
2010.3.31

2010.6.30

2011.3.31

2011.6.30

2010.3.31

2010.6.30

2011.3.31

2011.6.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

(Left-hand graph)
The number of Lifeplanner sales employees as of June 30, 2011, was
3,975, down 42 from March 31, 2011. This decrease was the result of alower number of new recruits due to the revised recruitment standards,
and a higher number of resignations.
(Right-hand graph)
The number of independent agents decreased 30 from March 31, 2010,
to 2,034.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets
10.3.31<Asset management review>

11.6.30(Billions of yen)Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

Amount%Amount%3,499.980.9%

3,586.6

81.5%

Japanese stocks

64.0

1.5%

62.2

1.4%

10.3.3117.6 years

Foreign securities

44.2

1.0%

52.7

1.2%

11.3.3118.5 years

11.6.30

18.5 years

Japanese governmentand corporate bonds<Lengthened
asset duration><L

Foreign stocks

30.0

0.7%

30.2

0.7%

Monetary trusts

276.4

6.4%

280.3

6.4%

Policy loans

134.4

3.1%

134.5

3.1%

Real estate

75.1

1.7%

74.5

1.7%

■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds

Cash and call loans

80.0

1.9%

68.1

1.5%

■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:

Others

120.9

2.8%

109.4

2.5%

4,325.2

100.0%

4,399.1

100.0%Total

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

As of June 30, 2011: 87.9%, (As of March 31, 2011: 87.3%)

14

Here is a breakdown of Sony Life’s general account assets as of June 30,
2011, compared with March 31, 2011.
As Sony Life continued its investment in ultralong-term bonds, mainly
Japanese government and corporate bonds, their ratio rose to 87.9% asof June 30, 2011.
As a result of these efforts, Sony Life’s asset duration become 18.5 years
as of June 30, 2011.
Going forward, Sony Life will mitigate interest rate risk by investing most
new money acquired in ultralong-term bonds.

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

19.0

+7.4%

Ordinary profit(Billions of yen)

20.4

0.7
0.4

FY10.1Q

FY10.1Q

Change

19.0

20.4

+1.4

18.8

20.2

+1.3

+7.1%

Investment income

0.1

0.2

+0.0

+21.2%

18.5

19.6

+1.0

+5.9%

14.3

15.1

+0.7

+4.9%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

4.1

4.5

+0.4

+9.6%

Ordinary profit

0.4

0.7

+0.3

+67.7%Net income

0.2

0.4

+0.2

+73.1%

Ordinary expenses
Underwriting expenses+67.7%

FY11.1Q

Underwriting income

Ordinary revenues+7.4%

FY11.1Q(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.
Ordinary profit increased due to a rise in ordinary
revenues and a lower provision of reserve foroutstanding losses.

10.6.30

11.3.3111.6.30

Underwriting reserves

61.3

64.0

67.1

+3.0

+4.7%

Total net assets

15.7

16.7

17.2

+0.4

+3.0%

101.3

109.3

112.2

+2.8

+2.6%

(Billions of yen)

Total assets

Change from 11.3.31

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

15

Sony Assurance posted a 7.4% increase in ordinary revenues year on
year, to ¥20.4 billion, due to increased net premiums written, as thenumber of insurance policies in force grew in its mainstay automobile
insurance.
Ordinary profit increased 67.7% year on year, to ¥0.7 billion due to a risein ordinary revenues and a lower provision of reserve for outstanding
losses.
Net income increased 73.1% year on year, to ¥0.4 billion.

15

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

FY10.1Q

FY11.1Q

Change Increased, owing to an increase in the numberof policies in force for automobile insurance.

Direct premiums written

18.7

20.0

+6.9%

Net premiums written

18.8

20.2

+7.1%

Net losses paid

9.2

10.2

+10.8%

Underwriting profit

0.3

0.5

+78.6%Net loss ratio

55.2%

56.9%

+1.7ptNet expense ratio

23.9%

24.6%

+0.7ptCombined ratio

79.1%

81.4%

+2.3ptNet expense ratio is equal to the ratio of total underwriting costs to net premiums written.

 Increased, owing mainly to an increase in thenumber of policies in force for automobile
insurance.
 Increased, due primarily to the planned
reinforcement of corporate systems andinfrastructure based on the expected
expansion of business operations.

 Increased, due to an increase in the numberof policies in force for automobile insurance.

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

10.6.30

11.3.3111.6.30

Change from 11.3.31+0.02 million

Number of policies in force

1.3 million

1.38 million

1.41 million

Solvency margin ratio

1,029.7%

981.4%

996.5%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+2.0%+15.1pt

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

16

Here is an overview of Sony Assurance’s performance.

16

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

Net Premiums Written

FY10.1Q

FY11.1Q

FY10.1Q

Change

Fire

31

32

+3.1%

Marine

－

－

－

1,767

1,805

+2.2%
+7.4%

Personal accident*
Voluntary automobile
Compulsory
automobile liability
Total

ChangeFY11.1Q(Millions of yen)

(Millions of yen)

16,93818,184－－－

18,73720,022

+6.9%

Fire

1

61

+3,516.4%

Marine32(27.3%)

Personal accident*

1,824

1,875

+2.8%

Voluntary automobile

16,871

18,117

+7.4%

158

150

(5.6%)

18,86020,208+7.1%

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is included in personal accident.

Net losses paid
FY10.1Q

FY11.1Q

Change(Millions of yen)
Fire

0

7

+65,393.4%

3

8+159.1%

Personal accident*

378

426

+12.8%

Voluntary automobile

8,732

9,627

+10.3%

Compulsory
automobile liability

153

197

+28.8%

9,266

10,267+10.8%

MarineTotal

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

17

This slide shows direct premiums written, net premiums written and net
losses paid by type.

17

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Ordinary Profit

Personal accident insurance(Millions of policies)

+8.0%

30
(Billions of yen)

1.41

2

1.4

1.30

1.19

1.2
+7.1%

20
0.1

17.3

0.1

18.8
1.8

20.2
1.8

1.7

1.5

0.2

1
0.8

18.1
16.8

10

(Billions of yen)

Number of policies in force

Other

1

0.9

0.6

15.4

0.4

+67.7%

0.5

0.7

0.4

0.2
0

0
FY09.1Q

FY10.1Q

FY11.1Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

0
FY09.1Q

FY10.1Q

FY11.1Q

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

18(Left-hand graph)
Number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 8.0% year on
year, to 1.41 million policies.
Net premiums written posted a 7.1% year-on-year increase, to¥20.2billion.
(Right-hand graph)
Ordinary profit increased year on year, as described in the previous
pages.

18

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

91.9

Net loss ratio

Net expense ratio

（％）
100

Combined Ratio(Net Expense Ratio + Net Loss Ratio)(0.4pt)

95.2

90.3

100

89.9

86.9

83.3

80

66.4
69.7
65.8

+2.3pt

85.6

81.4
76.5

80

60

79.1

(1.1pt)

65.3

62.3

+1.7pt

60

60.0
57.2

40

20

Net expense ratio

（％）

55.2

56.9

52.0

40

26.1

25.5

20

+0.7pt

24.6

23.9

24.6

FY09.1Q

FY10.1Q

FY11.1Q

0

26.1

25.5

+0.7pt

24.6

23.9

24.6

FY09.1Q

FY10.1Q

FY11.1Q

0

FY09

FY10

FY09

FY10

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

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

expenses and accumulation in provision for reserve for outstanding losses to earned premiums.

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 insurance are excluded

net premiums written.

from the above calculation.

19(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which isin a growth phase, we show the earned/incurred loss ratio, which is theaccrual-basis loss ratio.
For the three months ended June 30, 2011, the E.I. loss ratio decreased
1.1 percentage point year on year, to 65.3%, due mainly to a decrease in
the provision for reserve for outstanding losses.
The net expense ratio increased 0.7 percentage point, to 24.6%, due tothe reinforcement of corporate systems and infrastructure based on the
expansion of business operations.
(Right-hand graph)
The net loss ratio rose 1.7 percentage point compared with the same
period of the previous fiscal year, to 56.9%, due to an increased amountof net loss paid in line with increasing number of policies in force.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 2.3 percentage points year on year, to 81.4%.

19

Sony Assurance Operating Performance (3)Solvency Margin Ratio(%)<Reference>

1,200
New solvency margin ratio effective as of the end of FY11
+15.1pt

1,029.7
981.4

March 31, 2011 : 631.0%

996.5

June 30, 2011 : 640.3%
Variation factor from the previous standard

800◆Stricter risk measurement standards

Note:
Legislation concerning the calculation of the solvency margin ratio
has been revised from the standpoint of raising its credibility, andthese new standards are to become effective as of the end of fiscal
2011 (March 31, 2012). The above-stated figures are calculated on
the assumption that these changes are applied at March 31, andJune 30, 2011.

400

010.6.30

11.3.3111.6.30

20

As of June 30, 2011, Sony Assurance’s solvency margin ratio was
996.5%, up 15.1 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reason forthe decrease from the current standard is the stricter risk measurement
standards.

20

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

Ordinary profit(Billions of yen)

(3.9%)

7.7

0.7
FY10.1Q

7.4

1.1+47.6%

FY11.1Q(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥0.4 billion year on
year due mainly to an increase in net interest income.
- Net interest income increased ¥0.6 billion owing
primarily to a decrease in interest expenses on yen
deposits and an increase in interest income on loans
led by the growing balance of mortgage loans.
- Net other operating income decreased ¥0.2 billion
reflecting lower gains on bond dealing transactions.
Net operating profit increased, owing to an increase ingross operating profit, which offset the negative impactof higher general and administrative expenses.
Customer assets increased ¥16.6 billion from March 31,
2011, of which deposit balance increased ¥15.4 billion.

FY10.1Q

ChangeFY11.1Q

Ordinary revenues

7.7

7.4

(0.3)

(3.9%)

Gross operating profit

4.0

4.5

+0.4

+10.6%+21.5%Net interest income

3.1

3.8

+0.6

Net fees and commissions

0.06

0.06

+0.00

+0.1%

Net other operating income

0.8

0.5

(0.2)

(30.6%)

General andadministrative expenses

3.1

3.3

+0.1

+6.1%

Ordinary profit

0.7

1.1

+0.3

+47.6%Net income

0.3

0.6

+0.2

+76.0%Net operating profit

0.8

1.1

+0.3

+38.9%

10.6.30

11.3.3111.6.30

Securities

903.0

940.1

930.3

(9.7)

(1.0%)

Loans

600.9

722.4

748.3

+25.8

+3.6%

Deposits

1,517.1

1,649.1

1,664.5

+15.4

+0.9%

Customer assets

1,613.0

1,755.5

1,772.2

+16.6

+0.9%

Total net assets

58.2

59.9

61.2

+1.2

+2.1%

1.0

0.4

1.4

+1.0

+250.2%

1,637.3

1,761.8

1,782.5

+20.7

+1.2%

(Billions of yen)

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

Change from 11.3.31

Line item amounts are truncated below ¥100 million (excluding net fees and commissions);
percentage change figures are rounded.

21

Highlights of Sony Bank’s operating performance (non-consolidated
basis) are shown here.
Sony Bank’s ordinary revenues decreased 3.9% year on year, to ¥7.4
billion, owing primarily to a decrease in gains on foreign exchangetransactions.
Gross operating profit increased 10.6% from a year earlier, to ¥4.5 billion,
reflecting an increase in net interest income led primarily by a decrease ininterest expenses on yen deposits and an increase in interest income onloans led by the growing balance of mortgage loans.
General and administrative expenses expanded 6.1% year on year, to¥3.3 billion, due to the personnel reinforcement associated with the fullscale entry into credit card business.
As a result, ordinary profit increased ¥47.6%, to ¥1.1 billion.
Net income amounted to ¥0.6 billion, up 76.0% from the same period of
the previous fiscal year, due to higher ordinary profit .

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)Customer assets

10.6.30

11.3.3111.6.30

Change1,613.0

1,755.5

1,772.2

+16.6

+0.9%

Deposits

1,517.1

1,649.1

1,664.5

+15.4

+0.9%

Yen

1,189.1

1,289.8

1,299.4

+9.6

+0.7%

327.9

359.2

365.0

+5.8

+1.6%

95.9

106.4

107.6

+1.1

+1.1%

600.9

722.4

748.3

+25.8

+3.6%

562.4

656.0

676.1

+20.0

+3.1%

38.4

66.4

1

+5.7

+8.7%

809

859

869

+10

+1.2%

12.20%

10.84%

10.65%

Foreign currency
Investment trusts
Loans outstanding
Mortgage loans
Others72.1**1

Number of accounts (thousands)
Capital adequacy ratio (*2)(domestic criteria)(Reasons for changes)
 Foreign currency deposit increased
reflecting growing demand for saving
foreign currency under the market
fluctuation even though the sharp hike inthe yen might have the negative impact
on the foreign exchange conversion.

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

(0.19pt)*1 Loans in others include corporate loans of ¥64.4 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.
.

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

22

Here is an overview of Sony Bank’s performance.

22

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis(Billions of yen)
Gross operating profit
Net interest income *1 ①

FY10.1Q

FY11.1Q

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

Change

4.0

4.5

+0.4

+10.6%

3.4

4.2

+0.8

+22.9%

Gross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

Net fees andcommissions *2 ②

0.4

0.3

(0.1)

(25.7%)Net other operating
income *3

0.1

(0.0)

(0.2)

－

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

3.9

4.6

+0.6

+17.8%

Operating expenses andother expenses ③

3.2

3.3

+0.1

+3.2%

Net operating profit(core profit)= (A)－③

0.6

1.2

+0.5

+88.9%●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(Billions of yen)
+17.8%

4.6

3.9
4

3.7
+3.2%

3.2
3

3.3

2.7

2

1.2
1

+88.9%

1.0
0.6●Core profit
0Profits and losses exclude net other operating income, which includes those on bond andFY09.1Q
FY10.1Q
FY11.1Q
derivative dealing transactions, and stands for Sony Bank’s basic profits.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

We break down gross operating profit on a managerial accounting basis to facilitate anunderstanding of operational sources of revenue and profits.
(Left-hand table)
Net interest income on a managerial accounting basis increased ¥0.8 billion year on year,to ¥4.2 billion, due to a growing balance of assets, especially mortgage loans, andimproved interest spread.
Net fees and commissions amounted to ¥0.3 billion, down ¥0.1 billion, owing primarily toa decrease in profits on customer dealings in foreign currency transactions stemmingfrom adverse foreign exchange market conditions.
Net other operating income decreased ¥0.2 billion reflecting lower gains on bond dealingtransactions.
Consequently, gross operating profit on a core profit basis increased ¥0.6 billion year on
year, to ¥4.6 billion.
(Right-hand graph)
Net operating profit on a core profit basis increased ¥0.5 billion year on year, to ¥1.2
billion.

23

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

Yield on investment

Yield on financing

(%)

2

1.5

1

1.44

1.44

1.42

0.86

0.87

0.88

0.58

0.57

0.53

0.5

1.41

1.40

0.94

+0.04pt

0.98

0.45

0.43

FY10.4Q

FY11.1Q

0
FY10.1Q

FY10.2Q

FY10.3Q

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.

24

This chart shows the interest spread on a managerial accounting basis.
The yield on investment for FY11. 1Q, was at 1.41%. The yield on
financing dropped to 0.43%.
Interest spread has increased and reached 0.98% for FY11.1Q, up 0.04
percentage point from FY10.4Q.

24

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

Investment trusts

Loans
Mortgage loans

Others*Including corporate loans of ¥64.4 billion.

(Billions of yen)
+10

859

869

+25.8

748.3

800

809

722.4

2,000

1,755.5
1,613.0

1,772.2
+16.6

72.1*

107.6

600.9
600

1,500

365.0

400

1,000

Deposits
total:

676.1

1,664.5
1,299.4
200

500

0

0

10.6.30

11.3.3111.6.30

10.6.30

11.3.3111.6.30

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

25(Left-hand graph)
As of June 30, 2011, customer assets (the sum of deposits andinvestment trusts) were up ¥16.6 billion from March 31, 2011, to ¥1,772.2
billion.
As for the breakdown of customer assets as of June 30, 2011, deposits(the sum of Japanese yen and foreign currency deposits) amounted to¥1,664.5 billion, up ¥15.4 billion from March 31, 2011.
Of which foreign currency deposit increased ¥5.8 billion reflecting growing
demand for saving foreign currency under the market fluctuation eventhough the sharp hike in the yen might have the negative impact on theforeign exchange conversion.
Investment trusts were ¥107.6 billion, up ¥1.1 billion from March 31, 2011.
As of June 30, 2011, the number of accounts was 869 thousand, up 10
thousand accounts from March 31, 2011.
(Right-hand graph)
Loans expanded to ¥748.3 billion, up ¥25.8 billion, from March 31, 2011,
owing to a growing balance of mortgage loans, as well as an increase incorporate loans.

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

Balance of Securities by Credit Ratings
AAA
BBB

AA
BB

A
Other

(Billions of yen)

（％）
20

1,200

(9.7)
1,000

903.0

940.1

930.3

15

(0.19pt)

800

12.20
10

10.84

600

400

10.65

5

200
0
10.6.30

11.3.3111.6.30

0
10.6末

11.3末

11.6末

* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Act of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006.

Amounts are truncated below ¥100 million.

26(Left-hand graph)
As of June 30, 2011, the balance of securities decreased ¥9.7 billion, to¥930.3 billion from March 31, 2011.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of June 30, 2011, Sony Bank’s non-consolidated capital adequacy
ratio (domestic criteria) was 10.65%, down 0.19 percentage point fromMarch 31, 2011. These figures indicate that Sony Bank has maintained asound financial basis.

26

Consolidated Financial Forecast
for the Year Ending March 31, 201227

27

Consolidated Financial Forecast
for the Year Ending March 31, 2012

Consolidated ordinary revenues

FY10

1H FY11

ActualForecast

FY11
Forecast

ChangeFY10 actual vs.

1,002.2

497.0

1,022.0+ 2.0%+ 1.0%

Life insurance business

900.3

442.0

909.3

Non-life insurance business

74.1

40.1

80.4

+ 8.4%

Banking business

29.5

15.8

32.8

+ 11.0%

27.0

59.0

(23.2%)

25.0

53.0

(26.6%)

0.7

2.6+ 21.2%

Consolidated ordinary profit

76.8

Life insurance business

72.1

Non-life insurance business2.1

Banking business

2.4

1.7

4.1

+ 70.3%

41.7

13.0

29.0

(30.5％)

Consolidated net income(change)

0.3

Consolidated Ordinary Revenues

FY11 forecast

SFH’s forecast of consolidated financial results for the six months ending September 30, 2011 and for the fiscal year ending March 31, 2012, isunchanged from the forecast announced on May 20, 2011.

1,000

1,002.2

1,022.0500

0FY10 (Actual)■Life insurance business
Ordinary revenues for FY11 are expected to increase 1.0% year on year, to ¥909.3 billion. We anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force. We expect ordinary profit to decrease
26.6% year on year, to ¥53.0 billion. During FY10, the business generated net capital gains of ¥23.8 billion, reflecting theprocess of shifting bond holdings to ultralong-term bonds to reduce interest rate risk. However, we do not anticipate gains on
the sale of securities for FY11.

Banking business
Non-life insurance businessLife insurance business(Billions of yen)

FY11 (Forecast)

Consolidated Ordinary Profit(Billions of yen)
100

Banking business
Non-life insurance businessLife insurance business■Non-life insurance business
Ordinary revenues for FY11 are expected to rise 8.4% year on year, to ¥80.4 billion, due to an increase in net premiums written,
mainly for mainstay automobile insurance. Ordinary profit is expected to increase 21.2% year on year, to ¥2.6 billion, due
mainly to the aforementioned increase in ordinary revenues and an expected improvement in the loss ratio in line with the
February 2011 revision of automobile insurance premiums. This should offset an expected increase in the expense ratio in linewith the planned reinforcement of corporate systems and infrastructure based on the expected expansion of business
operations.

76.8
59.0
50

■Banking Business
Ordinary revenues for FY11, are expected to increase 11.0% year on year, to ¥32.8 billion, owing mainly to an increase in net
interest income, bolstered by a growing balance of loans, especially mortgages. Ordinary profit is expected to grow 70.3%, to¥4.1 billion, from the previous fiscal year, as we anticipate a steady increase in gross operating profit, driven by businessexpansion that should offset an increase in general and administrative expenses related to new product and service
development.

0
FY10 (Actual)

FY11 (Forecast)(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)28

Here is our consolidated financial forecast for the fiscal year ending
March 31, 2012.
SFH’s forecast of consolidated financial results for the six months
ending September 30, 2011 and for the fiscal year ending March 31,
2012, is unchanged from the forecast announced on May 20, 2011.
SFH’s consolidated financial results forecast for the fiscal year ending
March 31, 2012 is as follows.
We expect consolidated ordinary revenues to increase 2.0%, to ¥1,022.0
billion, compared with the period ended March 31, 2011, owing to steadybusiness expansion in all three business segments. Despite an
anticipated increase in ordinary revenues, we expect consolidated
ordinary profit and net income to decrease 23.2%, to ¥59.0 billion, and30.5%, to ¥29.0 billion, respectively. During the fiscal year ended March
31, 2011, the Group recorded net capital gains of ¥23.8 billion in the life
insurance business, reflecting the process of shifting bond holdings toultralong-term bonds to reduce interest rate risk. However, we do not
anticipate gains on sale of securities for the year ending March 31, 2012.

28

Appendix

29

Appendix29

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: Individual Variable Annuities (5 types, 6 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*) As of August 12, 2011
Financial Highlights for the FY11.1Q:
Number of new policies: 219, New policy amount: ¥1.6 billion
Number of policies in force: 1,425 policies, Policy amount in force: ¥15.2 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 24% of the balance ofmortgage loans as of June 30, 2011
Sony Life accounts for 27% of the amount of
new mortgage loans for FY11.1Q*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 FY11.1Q* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

30

(Recent Topics 1)

30

(Recent Topics 2)

31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)

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

32(Sony Life: Fair Value Information on Securities)

32

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

11.3.31②RealNet Assets

11.6.30

11.3.31③Solvency
Margin11.6.30

11.3.3111.6.30

Total shareholders’ equity

209.8

210.9

209.8

210.9

200.7

210.9

Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes

7.0
－
(1.4)

18.9
－
(1.4)

Reserve for price fluctuations

－

－

7.0
－
(1.4)
16.7

18.9
－
(1.4)
18.6

－
20.8
－
16.7

－
37.6
－
18.6

Contingency reserve

－

－

51.5

52.4

51.5

52.4

Reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate

－

－

1.9

1.9

1.0

1.0

－
－
－
－
－
－
215.3

－
－
－
－
－
－
228.4

334.2
1.1
－
－
(22.1)
8.0
606.9

337.9
1.0
－
－
63.2
14.8
718.5

334.2
1.1
0.6
63.3
－
－
690.3

337.9
1.0
0.6
69.1
－
－
729.4

Net unrealized gains (losses) on available-for-sale securities

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

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

②Before tax

Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥629.1 billion as of March 31, 2011, and ¥655.3 billion as of June 30, 2011.

Amounts are truncated below ¥100 million.

33(Sony Life’s Breakdown of Net Assets)33

Sony Life’s Solvency Margin Ratio(Billions of yen)
11.6.30(Currennt )Category

11.6.30(New)
729,417673,940

Common stock, etc

210,963

210,963

Reserve for price fluctuations

18,632

18,632

Contingency reserve

52,40552,405

Total solvency margin(A)

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
Excess amount of policy reserves based on Zillmer method
Unallotted portion of reserve for policyholders' dividends

0037,621

37,621

1,002

1,002

337,919

337,919

1,069

1,069

628

Future profits
Deferred tax assets

69,172

Subordinated debt－

That portion of the excess amount of policy reserves based on
Zillmer method and subordinated debt that is not included in the margin
Deductible items

Total risk
Insurance risk

(B)R1

69,172－(54,848)－－

48,24073,512

20,227

20,227

Third-sector insurance risk

R8

7,348

7,348

Assumed interest rate risk

R2

11,64928,059Asset management risk

R3

17,09829,066

Business management risk

R4

1,310

1,873

Minimum guarantee risk

R7

9,224

8,991

3,024.0%

1,833.5%

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

Note: Cabinet Office Ordinance No. 23 of 2010 and FSA public ministerial announcement No. 48 of 2010 prescribe a revision in the methods of calculating
total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive).
These changes are to be applied from the end of FY11. The above-stated figures are calculated on the assumption that these changes are applied on June 30, 2011.

Amounts are truncated below ¥100 million.

34(Sony Life’s Solvency Margin Ratio)

34

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

35(Contact)35