May 16, 2016
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Year Ended March 31, 2016
<Contents>
1. Key Performance Results

P.2

2. Policy Amount in Force by Insurance Function as of March 31, 2016

P.4

3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2016

P.5

4. Status of Investment Assets (General Account) for the Year Ended March 31, 2016

P.6

5. Non-consolidated Balance Sheets

P.13

6. Non-consolidated Statements of Income

P.14

7. Reconciliation to Core Profit and Non-Consolidated Ordinary Profit

P.15

8. Loans by Borrower Category

P.16

9. Risk-monitored Loans

P.16

10. Solvency Margin Ratio

P.17

11. Status of Separate Account Assets for the Year Ended March 31, 2016

P.19

12. Consolidated Summary

P.20

1

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

As of March 31, 2015
Category

Number% change fromMarch 31, 2014

As of March 31, 2016

Amount% change fromMarch 31, 2014

Number% change fromMarch 31, 2015

Amount% change fromMarch 31, 2015

Individual life insurance
6,552
105.1
403,910
104.6
6,880
105.0
422,937
104.7
Individual annuities
119
126.5
5,976
128.0
166
139.3
8,560
143.2
Group life insurance
14,421102.6
15,993110.9
Group annuities
172
31.2
130
76.1
Notes:
1. The policy amount in force for individual annuities are equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments havecommenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.
(Number: Thousand, Amount: 100 millions of yen, %)New policy amountFor the year ended March 31, 2015
Category

Individual life insurance
Individual annuities
Group life insuranceGroup annuities% YoYchangeNumber

578
27

111.8
177.0
-

% YoY
changeAmount-46,257
1,459
52-

Amount,Amount,of which,of which,increase fromnew policies
conversion
121.3
46,257
194.3
1,459
103.7
52
-

For the year ended March 31, 2016
Category

Number% YoYchangeAmount% YoYchangeAmount,Amount,of which,of which,increase fromnew policies
conversion
105.3
48,710
192.1
2,803
20.1
10
-

Individual life insurance
579
100.1
48,710Individual annuities
50
182.3
2,803
Group life insurance
10
Group annuities
Notes:
1. The new policy amount including increase from conversion for individual annuities is equal to the funds held at the time annuity
payments commence.
2. The new policy amount for group annuities is equal to the initial premium payment.

(2) Annualized Premiums(Millions of yen, %)Policy amount in force

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

As of March 31, 2015

% change fromMarch 31, 2014

As of March 31, 2016

% change fromMarch 31, 2015

714,620
21,107735,728

105.1
124.3
105.6

751,820
29,495
781,315

105.2
139.7
106.2

172,800

103.4

179,707

104.0(Millions of yen, %)New policies

Category
Individual life insurance
Individual annuities

Total
Of which, medical protection, living
benefit protection and other products

For the year ended
March 31, 2015
71,795
4,816
76,612% YoYchange
117.2
176.9
119.7

15,285113.3

For the year ended
March 31, 2016
76,334
8,684
85,018% YoYchange
106.3
180.3
111.0

15,717102.8

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

(3) Major P/L Items
Category(Millions of yen, %)For the year ended
March 31, 2015

% YoYchangeFor the year ended
March 31, 2016

% YoYchangeIncome from insurance premiums

914,034

95.1

1,028,048

112.5

Investment income

280,148131.9

170,51760.9

Insurance claims and other payments

382,902

117.0

363,370

94.9

Investment expenses

9,727

114.4

23,399240.6

Ordinary profit

79,665115.1

60,792

76.3(4) Total Assets
Category
Total assets(Millions of yen, %)As of March 31, 2015
7,301,350

3% change fromMarch 31, 2014110.2

As of March 31, 2016
8,035,408% change fromMarch 31, 2015

110.1

2. Policy Amount in Force by Insurance Function as of March 31, 2016
(Number: Thousand, Amount: 100 millions of yen)
Individual life insurance

Individual annuities

Group life insurance

NumberAmountNumberNumberAmountNumberAmountOrdinary death

5,655

404,033

-

-

1,743

15,9937,399

420,027

Accidental death

720

63,761

-

-

12

3

733

63,764

Death protection
with otherconditions

313

12,225

-

-

-

-

313

12,225

1,224

18,903

166

8,560

0

0

1,390

27,464

Accidental
hospitalization

2,673

181

-

-

9

0

2,683

181

Sickness
hospitalization

2,673

181

-

-

-

-

2,673

181

Hospitalization
with otherconditions

839

71

-

-

-

-

839

71

Disability protection

600

-

-

-

9

-

610

-

Surgery protection

1,685

-

-

-

-

-

1,685

-

Total

Category

Death protection

Living protection
Hospitalization protection

Asset-formation insurance,
asset-formation annuities

Group annuities
Category
NumberLiving protection

Category

Amount80

Number130

Total

Amount-Medical protection
insurance
NumberHospitalization
protection

Amount-NumberAmount80

130

Disability insurance
Category

Amount-NumberDisability protection-

Notes:
1. The numbers of policies for group life insurance products, and group annuity product reflects thetotal numbers of insured parties.
2. Of the policy amount in the living protection column, policy amount in force for individual annuities
and group life insurance (annuity payment rider) is equal to the sum of (a) the funds to be held at the timeannuity payments are to commence for policies for which annuity payments have not yet commenced and(b) the amount of policy reserves for policies for which payments have commenced.
The policy amount in force for group annuity products is the amount of outstanding policy reserves.
3. Figures for hospitalization protection show the daily benefits for hospitalization.

4

Amount--3. Example of Policyholder Dividend, based on Figures for the Year Ended March 31, 2016
(1) Standard dividend yields for semi-participating individual life insurance with policyholder dividends
every five years
For the year ended
March 31, 2015

For the year ended
March 31, 2016

Assumed interest rates of 2.00% or lessLevel-premium
Lump-sum premium and others

1.55%
1.20%

1.55%
1.20%

1.40%
1.05%

1.40%
1.05%

Assumed interest rates of more than 2.00%
Level-premium
Lump-sum premium and others(2) Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance(before annuity payments commence) using figures for the fiscal year ended March 31, 2016.

Example: Semi-participating whole life nursing-care insurance (before nursing care annuity payments commences)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of 0.5 million yen

Contract Date
November 2, 2015
November 2, 2014
November 2, 2013
November 2, 2012
November 2, 2011
November 2, 2010
November 2, 2009
November 2, 2008
November 2, 2007
November 2, 2006

Assumedinterest rate
1.00％
1.00％
1.00％
1.50％
1.50％
1.50％
1.50％
1.50％
1.50％
1.50％

Years
elapsed1 year
2 years
3 years
4 years
5 years
6 years
7 years
8 years
9 years
10 years

Policies to which
nursing care applies,
ending at death ofpolicyholder (yen)Ongoing
policy
(yen)
0
0

7,533
15,185
22,957
0
0
0
0
0
0
0

Note:
1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amountreceivable for nursing care or upon death. The number of years elapsed is the number throughNovember 2, 2016.
2. The above-stated dividend amount is the sum of the pro-rated dividend amount(policy reserve × dividend participation ratio) and interest through November 2, 2016(excluding dividends already paid).
Dividend participation ratio = Standard dividend yield - Assumed interest rate(3) Standard dividend yield on group annuities
The standard dividend yield on group annuities is 1.80%, using figures for the fiscal year ended March 31, 2016
Note: Dividend participation is calculated as follows:
Dividend amount = Policy reserve × Dividend participation ratio
Dividend participation ratio = Standard dividend yield - Assumed interest rate(4) For group term life insurance and other products, a reserve for policyholders’ dividends isaccumulated in accordance with each product’s characteristics
5

4. Status of Investment Assets (General Account) for the Fiscal Year Ended March 31,
2016(1) Status of Investment Assets for the Fiscal Year Ended March 31, 2016
1) Investment Environment
During the fiscal year ended March 31, 2016, the Japanese economy was at a standstill, affected by such factors as sluggish
personal consumption, a deceleration in emerging economies and confusion in global financial markets. In Japan, rising raw
materials costs caused prices on food products and everyday items to increase, suppressing personal consumption. Furthermore,
corporate capital expenditure progressed more slowly than had been anticipated, leading to slower economic growth. On theother hand, inbound consumption by foreigners visiting Japan continued, and the balance of trade improved as a result of
falling resource prices. Economic growth leveled off reflecting these factors.
Real GDP growth, compared with the previous quarter, was negative 1.4% p.a. for the April–June quarter and positive
1.4% p.a. in the July–September quarter. Economic growth weakened somewhat thereafter, turning to negative 1.1% p.a. for
the October–December quarter and is estimated at positive 0.25%1 p.a. for the January–March quarter.
Japanese bond market performance turned upward (yields fell). Decreases in interest rates predominated due to the Bankof Japan (BOJ)’s quantitative and qualitative monetary easing policy. In January 2016, the BOJ introduced a qualitative andquantitative monetary easing policy featuring negative interest rates, forcing down already-low interest levels still further. The
BOJ’s buying operations prompted a tightening of the supply/demand situation in the bond market, causing yields on 10-year
Japanese government bonds (JGBs), an indicator of long-term interest rates, to fall below negative 0.1% at one point.
Thereafter, a sense of uncertainty about the specific market impact of negative interest rates and concerns about investor trends
in the new fiscal year led to a slight uptick in interest rates. As of March 31, 2016, long-term interest rates were negative
0.049% (down 0.447 percentage point year on year).
Stock market performance was down. Although remaining firm on rising corporate performance and expectations ofgrowing shareholder returns in the first half of the year, stock prices turned downward affected by a plunging Chinese stock
market during the summer. Stock prices remained highly volatile after that point, as well, with lackluster performance by
newly emerging economies affected by falling resource prices and a growing sense of uncertainty about the Japanese
economic outlook. As of March 31, 2016, the Nikkei Stock Average was ¥16,758.67, down ¥2,448.32 from its level on March
31, 2015.
On foreign exchange markets, the yen continued to appreciate in the second half of the year. In the first half of the year, theyen depreciated against the U.S. dollar in a trading range centering around ¥120 to the U.S. dollar, affected by mounting
anticipation of a rise in U.S. interest rates. An increasing sense of global economic uncertainty after that point, coupled by amounting awareness that a further rise in U.S. interest rates would be difficult, caused the yen to gradually appreciate against
the dollar, rising at one point to around ¥111 to the U.S. dollar. Another factor behind this yen appreciation was a shift inJapan’s balance of trade—which is perennially negative—into positive territory. As of March 31, 2016, the yen was trading at¥112.68 to the U.S. dollar, appreciating ¥7.49 from ¥120.17, its level one year earlier.
2) Investment Policy
Our investment policy is based on asset liability management (ALM), a strategy stemming from an understanding of thecharacteristics of insurance liabilities and prioritizing investments in assets that have corresponding characteristics.
Specifically, as life insurance policies represent long-term liabilities, we invest primarily in ultralong-term JGBs that have along term remaining until maturity. This approach allows us to appropriately control the risks associated with interest rate
fluctuations on insurance liabilities. Meanwhile, we limit our investments in risky investments such as equities.
3) Results of Investment
As of March 31, 2016, general account assets totaled ¥7,185.0 billion, up 10.4%, or ¥677.0 billion, from a year earlier. Within
general account assets, domestic bond investment totaled ¥6,351.1 billion (accounting for 88.4% of total general accountassets), foreign bonds ¥70.1 billion (1.0%), Japanese stocks ¥33.3 billion (0.5%), monetary trusts ¥280.9 billion (3.9%), policy
loans ¥171.6 billion (2.4%), real estate ¥115.8 billion (1.6%), and cash and cash deposits and call loans ¥52.5 billion (0.7%).

1

ESP Forecast Survey, Japan Center for Economic Research
6(2) Portfolio of General Account Assets
Category
Cash and deposits, call loans
Securities repurchased under resaleagreements
Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currencydenominated assets

0.9(Millions of yen, %)As of March 31, 2016
Amount%52,551
0.7

-

-

-

-

-

-

-

-

313,276
5,783,292
5,606,885
42,496
131,627
105,556
26,0702,283
162,399
117,764
74,722(268)
6,508,006

4.8
88.9
86.2
0.7
2.0
1.6
0.4
0.0
2.5
1.8
1.1
(0.0)
100.0

280,973
6,479,336
6,351,176
33,364
93,14070,13423,005
1,654
171,649
115,816
85,031(272)
7,185,084

3.9
90.2
88.4
0.5
1.3
1.0
0.3
0.0
2.4
1.6
1.2
(0.0)
100.0

82,158

1.3

91,817

1.3

As of March 31, 2015
Amount%56,818

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

(3) Changes in General Account Assets by Categories(Millions of yen)
Category

For the year ended March 31, 2016

For the year ended March 31, 2015

Cash and deposits, call loans
Securities repurchased under resaleagreements

24,201

Pledged money for bond borrowing
transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currencydenominated assets(4,267)
-

-

-

-

7,929
449,242
416,8199,290
24,87525,721(845)(1,743)
8,180
51,231(13,643)(3,451)(26)
523,665(32,302)
696,043744,291(9,131)(38,487)(35,422)(3,065)(629)
9,249(1,948)10,309(4)
677,078

23,963

9,658

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

7(4) Investment Income(Millions of yen)

For the year ended
March 31, 2015

Category
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Income from real estate for rent
Other income from interests and dividends
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on sale of Japanese bonds (including JGBs)
Gains on sale of Japanese stocks, etc.
Gains on sale of foreign securities
Other
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Reversal of reserve for possible loan losses
Other investment income
Total

For the year ended
March 31, 2016

133,592
0
117,276
5,921
10,327
66

141,450
0124,943
6,174
10,261
71
-

5,283
507
8,899
7,601
1,298
-

11,97398
12,204
11,247
882
75
-

1
-

4,768

5,068

-

7
153,35921
170,517(5) Investment Expenses(Millions of yen)

For the year ended
March 31, 2015

Category
Interest expense
Losses on securities under proprietary accounts
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Losses on sale of JGBs, other bonds
Losses on sale of Japanese stocks
Losses on sale of foreign securities
Other
Devaluation losses on securities
Devaluation losses on JGBs, other bonds
Devaluation losses on Japanese stocks
Devaluation losses on foreign securities
Other
Losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses
Provision for reserve for possible loan losses
Write-off of loans
Depreciation of real estate for rent and others
Other investment expenses
Total

For the year ended
March 31, 2016
31

53
-

-

0
0
0
2,099

1
-

32

2,798
5

1,931
5,630
9,727

8

1,936
3,868
8,664

(6) Investment Efficiency(i) Investment yield by type of asset(%)

Category
Cash and deposits, call loans
Securities repurchased underresale agreements
Pledged money for bondborrowing transaction
Monetary claims purchased
Securities under proprietaryaccounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Loans
Real estate

Total

For the year ended
March 31, 2015

For the year ended
March 31, 2016

0.06

0.05
-

-

-

-

-

-

-

-

1.97
2.40
2.17
3.35
12.69
3.74
4.39
2.36

4.84
2.23
2.16
4.90
4.13
3.71
4.90
2.42

Of which, overseas
12.57
4.09
investment
Notes:
1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment
income minus investment expenses.
2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.
3. Yield on overseas investment is a total of foreign-currency-denominated assets and yen-denominated assets.
(ii) Valuation gains (losses) on trading-purpose securities(Millions of yen)

As of March 31, 2015
Category
Trading-purpose securities
Note:

Balance sheet
amountAs of March 31, 2016

Net valuation gains(losses) recorded inincome1,062

Balance sheet
amount40

The above table includes trading-purpose securities included in “monetary trusts,” etc.

9

2,215

Net valuation gains(losses) recorded inincome153

(iii) Fair Value Information on Securities
a. Fair value information on securities with market value (except trading-purpose securities)(Millions of yen)

As of March 31, 2015
Category

Net unrealized gains (losses)

Carrying
amountHeld-to-maturity securities

As of March 31, 2016

Fair value

4,878,792

Unrealized Unrealized
gains
losses839,466
839,567101

5,718,258

Policy reserve matching bonds

-

-

-

-

-

Stocks of subsidiaries and affiliatedcompanies

-

-

-

-

-

Available-for-sale securities

Fair value

5,383,938

7,410,168

251,260

292,566-

Unrealized Unrealized
gains
losses2,026,230 2,026,230
41,305-41,306-0--

1,007,822

1,176,698

168,875

168,984

887,973

1,091,602

203,629

203,739

JGBs, other bonds

974,613

1,120,126

145,512145,512-854,339

1,040,351

186,011

186,011

Japanese stocks

13,421

29,496

16,075

16,075-

13,62525,664

12,03912,04910Foreign securities

19,451

26,412

6,961

7,069

19,842

25,279

5,436

5,536

99

Bonds

19,451

Stocks, etc.

26,412-Other securities

6,961
-

336

663

108

Net unrealized gains (losses)

Carrying
amount

108

7,069
-

326

108
-

19,842-326-

25,279
-

165

5,436
-

307

109
-

5,536
-

142

99
-

-

142

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Total

5,886,614

6,894,956

1,008,341

1,008,551

210

6,523,172

8,794,337

2,271,165

2,271,276

110

JGBs, other bonds

5,775,323

6,736,583

961,259

961,361101

6,444,682

8,689,521

2,244,838

2,244,838

0Japanese stocks

13,421

29,496

16,075

16,075

13,62525,664

12,03912,04910Foreign securities

97,533

128,21430,68030,788108

64,69878,84414,146

14,24599

97,533

128,21430,68030,788108

64,69878,84414,146

14,24599

Bonds
Stocks, etc.

-

Other securities

336

663

326

-

326

-

165

307

142

142

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Notes:
1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.
2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, amounted to ¥232,320 million and ¥48,431 million.

b. Carrying amounts of the securities without market value(Millions of yen)

Category

As of March 31, 2015

As of March 31, 2016

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

18,50013,267Available-for-sale securities

14,492

12,301-

Unlisted domestic stocks (except OTC stocks)
Unlisted foreign stocks (except OTC stocks)

663

149
439
-

-

Unlisted foreign bonds
OthersTotal

13,828

11,712

32,992

25,56910

c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b as follows:(Millions of yen)

As of March 31, 2015
Category

Held-to-maturity securities

Stocks of subsidiaries and affiliatedcompanies
Available-for-sale securities

Net unrealized gains (losses)

Carrying
amountFair value

4,878,792

Policy reserve matching bonds

As of March 31, 2016
Unrealized
gains

5,718,258-

18,500

839,466-

18,500

Unrealized
losses839,567

101

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized Unrealized
gains
losses5,383,938

7,410,168

2,026,230

2,026,230---

251,260

292,566

41,30541,306---

13,267

13,267--

1,022,315

1,198,889

176,574

177,188

900,274

1,109,405

209,130

209,792

JGBs, other bonds

974,613

1,120,126

145,512145,512-854,339

1,040,351

186,011

186,011

Japanese stocks

13,421

29,496

16,075

16,075-

13,77525,814

12,03912,04910Foreign securities

20,11528,488

8,373

8,482

108

20,281

27,271

6,989

7,089

99

108

19,842

25,279

5,436

5,536

99

439

1,992

1,552

1,552

11,877

15,967

4,090

4,641

Bonds

19,451

26,412

6,961

7,069

Stocks, etc.

663

2,076

1,412

1,412

Other securities

14,165

20,778

6,613

7,118

614

-

0

505

661
-

551

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

Total

5,919,607

6,935,647

1,016,040

1,016,756

715

JGBs, other bonds

5,775,323

6,736,583

961,259

961,361101

Japanese stocks

26,42142,496

16,075

16,075

Foreign securities

-

-

-

-

-

-

6,548,741

8,825,407

2,276,666

2,277,328

662

6,444,682

8,689,521

2,244,838

2,244,838

0

20,34332,382

12,03912,04910

103,697

135,790

32,09232,201

108

71,83787,536

15,69915,79899

Bonds

97,533

128,21430,68030,788108

64,69878,84414,146

14,24599

Stocks, etc.

6,163

7,576

1,412

1,412

7,139

8,692

1,552

1,552

Other securities

14,165

20,778

6,613

7,118

11,877

15,967

4,090

4,641

Monetary claims purchased

-

-

-

505
-

-

-

-

-

551
-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

11

(iv) Fair value information on monetary trusts(Millions of yen)

As of March 31, 2015
Category

Monetary trusts

Balancesheet
amountFair value313,276

313,276

As of March 31, 2016

Net unrealized gains (losses)
Unrealized Unrealized
gains
lossesBalancesheet
amountFair value-

280,973

280,973--

Net unrealized gains (losses)
Unrealized Unrealized
gains
losses---Note: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investment(Millions of yen)

As of March 31, 2015
Category

Net valuation
gains (losses)
recorded in income

Balance sheet amount

Monetary trusts for investment

As of March 31, 2016-

Balance sheet amount-

Net valuation
gains (losses)
recorded in income--

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts(Millions of yen)

As of March 31, 2015

As of March 31, 2016

Net unrealized gains (losses)

Category

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized Unrealized
gains
lossesMonetary trusts for held-to-maturity

-

-

-

-

-

-

-

-

-

-

Monetary trusts for policy reserve matching

-

-

-

-

-

-

-

-

-

-

268,017313,225

45,20845,208-232,491

280,922

48,431

48,431-Other monetary trusts

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

125. Non-consolidated Balance Sheets(Millions of yen)

Assets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)(Other securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivables
Prepaid expenses
Accrued income

As ofMarch 31, 2015

As ofMarch 31, 2016

AmountAmountAs of
As ofMarch 31, 2015 March 31, 2016
AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities
Payable under securities lending transactions
Accrued income tax
Other payables
Accrued expenses
Unearned income
Deposits received
Deposits received for guarantee
Variation margins of futures markets
Derivative liabilities
Lease obligations
Asset retirement obligations
Policy suspense and other suspense
Reserve for employees' retirement benefits
Reserve for directors' retirement benefits
Reserve for price fluctuations
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation

6,756,882
25,4496,727,241
4,191
2,450
585
45,61916,742
1,412
15,399
953
1,783
5,076
728
16
665
2,842
19,72591
42,84542,845120503

7,371,174
29,635
7,336,533
5,006
2,455
621
104,996
62,804
8,998
2,765
18,920
995
1,594
5,186
168
711
13
679
2,157
21,944
121
44,26044,2607,151
488

Total Liabilities

6,868,824

7,553,212

16,535
1
16,534
71,234313,276
6,543,703
5,742,140
2,060
28,66492,564
451,613226,659
162,399
162,3972
118,232
83,00734,75715452
21,59021,5809
18158,52133,791
1,220
17,05918,394
2
18,392
88,200280,973
7,273,361
6,382,481
1,836
125,101
83,411
471,973
208,556
171,649
171,649
116,256
83,007
32,7771231427
19,171
19,1629298
64,99833,407
1,216
17,205

4,061

5,313

Common stock

70,00070,000

813
867
248
373
85

4,797
979
1,640
359
77

Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings

5,865
5,865
240,028
22,128217,900

5,865
5,865
257,175
26,118231,056

Prepaid pension costs

2,295

2,377

217,900

231,056

Reserve for possible loan losses
Reserve for possible investment losses(268)(6,352)(272)-

7,301,350

8,035,408

315,893
118,113(1,480)116,632
432,526
7,301,350

333,040
150,621(1,465)
149,155
482,195
8,035,408

Money on deposits
Initial margins of futures
Variation margins of futures markets
Derivatives
Advance payments
Other

Total Assets

Net Assets:

Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains (losses) on other securities,
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

13

6. Non-consolidated Statements of Income(Millions of yen)

For the ｙear ended
March 31, 2015
Ordinary Revenues
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Interest income from deposits
Interest income and dividends from securities
Interest income from loans
Rent revenue from real estate
Other interest income and dividends
Income from monetary trusts, net
Gains on trading securities
Gains on sale of securities
Gains on redemption of securities
Gains on derivatives, net
Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Income for annuity riders
Income for deferred payment of claims
Other ordinary income
Ordinary Expenses
Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Refund to policyholders
Reinsurance premiums
Provision for policy reserves and others
Provision for reserves for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses
Interest expenses
Losses on sale of securities
losses on redemption of securities
Losses on derivatives, net
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement benefits
Provision for reserve for directors' retirement benefits
OthersOrdinary Profit
Extraordinary Gains
Reversal of reserve for investment loss
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
Valuation loss on stock of equity method affiliatedcompanies
Provision for reserve for investment losses
Provision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes - current
Income Taxes -deferred
Total Income Taxes
Net Income

1,223,827
914,034
912,497
1,537
280,148
133,592
0
117,276
5,921
10,327
66
5,283
507
8,899
1
5,068
7
126,789
29,644
3,617
22,154
3,872
1,144,162
382,902
79,622
11,28063,166
223,130
3,675
2,027
604,357746
603,607
3
9,727
31
0
0
2,099
32
1,931
5,630
115,603
31,571
12,184
10,571
5,267
3,523
24
0
79,665
7,683
31
10
1,288
1,288

1,230,141
1,028,048
1,026,407
1,640
170,517
141,450
0124,943
6,174
10,261
71
11,97398
12,204

-

6,682

6,352
2,153
69,82827,055247
27,30342,52414

For the year ended
March 31, 2016

4,768
21
31,5752,352
26,8282,394
1,169,348
363,370
84,283
11,496
74,842
184,936
5,711
2,099
613,480
4,185
609,291
2
23,399
53
1
2,798
5
1,936
3,868
14,735
133,334
35,764
14,93912,373
5,342
3,077
30
0
60,792
6,352
6,352
8,466
7
362
1,415
1,415

3,564
55,113
21,735(3,718)18,01637,096

7. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)
For the year ended
March 31, 2015
Core Profit
A
Capital gains
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities
Gains on derivatives, net
Foreign exchange gains, net
Other capital gains
Capital losses
Losses on monetary trusts, net
Losses on trading securities, net
Losses on sale of securities
Devaluation losses on securities
Losses on derivatives, net
Foreign exchange losses, net
Other capital losses
Net capital gains (losses)
B
Core profit plus net capital gains (losses)
A+B
Other one-time gains
Gains from reinsurance
Reversal of contingency reserve
Reversal of specific reserve for possible loans losses
OthersOther one-time losses
Losses from reinsurance
Provision for contingency reserve
Provision for specific reserve for possible loans losses
Provision for reserve for loan losses from borrowers in specificWrite-off of loans
OthersNet other one-time gains (losses)
C
Ordinary Profit
A+B+C

For the year ended
March 31, 2016

76,505
14,447479
8,899-

43,01927,387
7,119
41
12,204
4,768

5,068

-

3,253
2,951

6,011
-

-

0
2,099
3,910
8,435
84,9402,798
153
24,43567,455

-

-

5,275

6,662
-

-

5,035
31

6,458
5
-

-

207
(5,275)79,665

197(6,662)60,792

Notes:
1. Core profit for the fiscal year ended March 31, 2016 (A) includes income gains of ¥4,853 million in income frommonetary trusts and interest income and dividends of ¥57 million in income from trading securities, net; other capital gains
include reversal of policy reserves and others of ¥3,253 million for currency market fluctuations of products dominated inforeign currencies; other capital losses include impairment losses of ¥153 million from investment partnership; "Others" ofother one-time losses included provision of additional policy reserve of ¥197 million.
2. Core profit for the fiscal year ended March 31, 2015 (A) includes income gains of ¥5,283 million in income from monetary trusts
and interest income and dividends of ¥28 million in income from trading securities, net; other capital gains include provision ofpolicy reserves and others of ¥3,693 million for currency market fluctuations of products dominated in foreign currencies andimpairment losses of ¥217 million from investment partnership; "Others" of other one-timelosses included provision of additional
policy reserve of ¥207 million.

15

8. Loans by Borrower Category(Millions of yen)

Category

As of March 31, 2015

As of March 31, 2016

Bankrupt and quasi-bankrupt loans--

Doubtful loans--

Sub-standard loans--

Sub-total--[% to total]

[-]

[-]

165,075

223,255

165,075

223,255

Normal loans
Total

Notes:
1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization,
rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.
2. Doubtful loans are loans to obligors (other than bankrupt and quasi-bankrupt borrowers) with deteriorated financial
condition and results of operations from which it is unlikely that the principal and interest on the loans will be recovered.
3. Sub-standard loans are loans on which principal and/or interests are past due for three months or more (excluding loans
described in notes 1. and 2. above) and loans on which terms and conditions have been amended in favor of the borrowers (e.g.
reduction of the original interest rate, defferral of interest payments, extension of principal repayments or debt waiver) in orderin order to support the borrowers' recovery from financial difficulties (excluding loans described in notes 1. and 2.
above and loans on which principal and/or interest are past due for three months or more).
4. Normal loans are all other loans.

9. Risk-monitored Loans
Not applicable1610. Solvency Margin Ratio(Millions of yen)

Category
Total solvency margin(A)

Common stock, etc.
Reserve for price fluctuations
Contingency reserve
General reserve for possible loan losses
Net unrealized gains on other securities (before taxes), Deferred gains or losses
on hedges (before taxes) multiplied by 90% (100% if losses)
Net unrealized gains on real estate multiplied by 85% (100% if losses)
Amount excluded from deferred tax assets
Unallotted portion of reserve for poricyholders' dividends
Deferred tax assets
Excess amount of policy reserves based on Zillmer method
Subordinated debt
The 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

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

Insurance risk
Third-sector insurance risk
Assumed interest rate risk
Minimum guarantee risk
Asset management risk
Business management risk

(B)

R1
R8
R2
R7
R3
R4

As of March 31, 2015
1,078,363
301,193
42,84568,7070

As of March 31, 2016
1,169,875
319,740
44,26075,166
0

158,917

188,217

15,325

20,778-212
81,201
429,392302
83,648
470,777--(16,433)(31,308)(3,000)(1,707)

84,41185,93023,045
8,422
30,13814,37331,493
2,149

23,5768,519
30,613
15,90230,831
2,188

2,555.0%

2,722.8%

Solvency margin ratio(A)(1/2) x (B)x 100

Notes:
1. The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance BusinessAct of Japan and the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk is calculated based on the standardized approach.

17

(Reference) Consolidated Solvency Margin Ratio
Although Sony Life is not required to prepare consolidated financial statements since it does not have consolidated subsidiaries, Sony Life
discloses consolidated solvency margin ratio consolidated with it's affiliated companies quarterly.
(Millions of yen)

Category

As of March 31, 2015
1,066,059
299,756
42,84568,7070

As of March 31, 2016
1,151,900
318,01144,26075,166
0

158,917

188,217

15,325

20,778(1,918)(4,836)

212
81,201
429,392-302
83,648
470,777-(17,870)(33,036)(10,510)(11,389)(B)

80,30082,983R923,045
8,422
30,13814,373
27,118
2,061

23,5768,519
30,613
15,902
27,6982,126

2,655.1%

2,776.2%

Total solvency margin (A)Common stock, etc.
Reserve for price fluctuations
Contingency reserve
Catastrophe reserve
General reserve for possible loan losses
Net unrealized gains on other securities (before taxes), Deferred gains orlosses on hedges (before taxes) multiplied by 90% (100% if losses)
Net unrealized gains on real estate multiplied by 85% (100% if losses)
Total amount of unrecognized net actuarial gain and unrecognized priorservice cost
Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends
Deferred tax assets
Excess amount of policy reserves based on Zillmer method
Subordinated debt
The 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
R1
Ordinary insurance risk
R5
Major Catastrophe risk
R6
Third-sector insurance risk
R8
Insurance risk of small-amount short-term insurance providers
Assumed interest rate risk
R2
Minimum guarantee risk
R7
Asset management risk
R3
Business management risk
R4

Solvency margin ratio(A)(1/2) x (B)x 100

Notes:
1. The figures were calculated based on provisions in Articles 86-2 and 88 of the Ordinance for
Enforcement of the Insurance Business Act of Japan and Public Notice of Financial Services Agency No. 23 of 2011.
2. Minimum guarantee risk was calculated based on the standardized approach.

18

11. Status of Separate Account Assets for the Year Ended March 31, 2016
(1) Balance of Separate Account Assets
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.
(Millions of yen)

As of March 31, 2015
AmountCategory
Individual variable life
insurance and individual
variable annuities

As of March 31, 2016
Amount793,344

850,323-

Group annuities-

793,344

Total separate account

850,323(2) Status of Individual variable life insurance and individual variable annuities (Separate Account)(i) Policy amount in forcea) Individual variable life insurance
As of March 31, 2015
Category
NumberAmount(Number: Thousand, Amount: Millions of yen)

As of March 31, 2016
NumberAmountVariable life insurance（whole life type）

685

7,826,857

823

8,690,797

Variable life insurance（limited term type）

61

222,44384

323,349

Variable life insurance（term type）

1

44,356

1

40,538748

8,093,657

909

9,054,686

Total

Note: Amounts include the rider portion of variable life insurance.

(Number: Thousand, Amount: Millions of yen)b) Individual variable annuities
Category
Individual variableannuities

As of March 31, 2015
NumberAs of March 31, 2016

Amount46

252,266

NumberAmount81

456,096Note:
The amount of individual variable annuities is equal to the sum of (a) the funds to be held at the time annuity payments are to commence
for policies for which annuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments
have commenced.

19

(ii) Portfolio of separate account assets in individual variable life insurance and individual variable annuities(Millions of yen, %)As of March 31, 2016
Amount%54,043
6.4
794,025
93.4
158,24418.6
50,046
5.9
378,83344.6
62,504
7.4
316,32837.2
206,90224.3(2,103.0)2,254
0.3
850,323
100.0

Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

Category
Cash and deposits, call loans
Securities
JGBs, other bonds
Japanese stocks
Foreign securities
Foreign bonds
Foreign stocks, etc.
Other securities
Loans
Other
Reserve for possible loan losses
Total

As of March 31, 2015
Amount%30,9503.9
760,41195.8
165,980
20.9
50,0686.3
319,985
40.3
59,9187.6
260,06732.8
224,376
28.3
1,982
0.2
793,344100.0(iii) Net investment gains (losses) of separate account assets in individual variable life insurance and individual
variable annuities
Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life. (Millions of yen, %)Category

For the year ended March 31, 2015

Interest income and dividends
Gains on sale of securities
Gains on redemption of securities
Valuation gains on securities
Foreign exchange gains, net
Gains on derivatives, net
Other investment income
Losses on sale of securities
Losses on redemption of securities
Devaluation losses on securities
Foreign exchange losses, net
Losses on derivatives, net
Other investment expenses
Net investment gains (losses)

For the year ended March 31, 2016

13,175
17,27516
232,096
8,458

15,22036,481
4
163,414
12,643-993
103
142,989
146
126,789

12. Consolidated Summary
Not applicable

20

0
2,103
33
239,513850(14,735)