May 20, 2010
Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Year Ended March 31, 2010
<Contents>
1. Balance Sheets

P.2

2. Statements of Income

P.4

3. Financial Summary (Year-onYear)

P.5

4. Premiums and Losses Paid by Type of Category

P.7

5. Risk-Monitored Loans

P.7

6. Securities

P.8

7. Solvency Margin Ratio

P.911. Balance Sheets(Millions of yen)
As of March 31, 2009

As of March 31, 2010

Assets:Cash and deposits

2,819

3,507

002,819

3,507

64,30973,234

Japanese government bonds

14,50229,333

Japanese municipal bonds

31,87025,656

Japanese corporate bonds

13,797

12,101

Foreign securities

1,097

997

Other securities

3,040

5,144

Tangible fixed assets

270

325

Buildings

220

223

Other tangible fixed assets

50

102

1,898

1,912

744

1,250

1,134

648

20

13

12,13913,553

Accrued premiums

1,018

1,021

Due from reinsurers

3885

Due from foreign reinsures

1-

8,384

9,326

Accrued income

149

149

Deposits

356

405

Deposits for earthquake insurance

22

23

2,169

2,540

Deferred tax assets

5,260

5,807

Total assets

86,69898,340

CashDeposits
Securities

Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Other assets

Accounts receivable

Suspense payments2

(Millions of yen)
As of March 31, 2009

As of March 31, 2010

Liabilities:
Policy reserve

66,52075,851

Reserves for outstanding claims

15,72917,725

Policy reserve

50,791

58,125

5,411

5,809

158

125

Due to foreign reinsurers

310

Income taxes payable

556

565

Deposits received

57

Accounts payable

1,847

2,076

Suspense receipt

2,839

3,024

Lease obligations

1-Reserve for employees’ retirement benefits

462

552

Reserve for directors’ retirement benefits

3728

Reserve for employees’ bonuses

575

589

Reserve for price fluctuations and others

1227

1227

73,02082,85820,00020,000Capital reserve

20,00020,000Total capital surplus

20,00020,000(26,147)(24,543)(26,147)(24,543)

Total retained deficits(26,147)(24,543)

Total shareholder’s equity

13,852

15,456

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

(173)

25

Total valuation and translation adjustments

(173)

25

Total Net Assets

13,67815,482

Total Liabilities and Net Assets

86,69898,340

Other liabilities
Due to reinsurers

Reserve for price fluctuations
Total Liabilities
Net Assets:
Shareholder's equity
Common stock
Capital surplus

Retained deficits
Other retained deficits
Unappropriated retained deficits

Valuation and translation adjustments32. Statements of Income(Millions of yen)
For the year ended
March 31, 2009

For the year ended
March 31, 2010

61,882

68,174

61,137

67,468

61,10667,440

31

27717

681

Interest income and dividends

684

688

Gains on sale of securities

617

Gains on redemption of securities

312(31)

(27)

28

24

59,70465,609Underwriting expenses

44,211

49,185Net losses paid

29,952

34,573

Loss adjustment expenses

3,632

4,009

Net commissions and brokerage fees

1,063

1,271

Provision for reserve for outstanding claims

1,482

1,996

Provision for policy reserve

8,079

7,334

Other underwriting expenses

00

177

13

Losses on sale of securities

143

12

Devaluation losses on securities

29

Losses on redemption of securities

4

1

15,30816,389

720

2,178

2,565

Ordinary revenues
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income

Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary expenses

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary gains

-

23

-

Reversal of reserve for price fluctuations and others

23-

Reversal of reserve for price fluctuations

23-

Extraordinary losses

3,819

863

3,819

848

Provision for reserve for price fluctuations and others-

14

Provision for reserve for price fluctuations-14(1,617)

1,702

Income taxes-Current

765658

Income taxes-Deferred(826)(561)

Total income taxes

(60)

97

Net income (loss)(1,556)

1,604

Losses on sale or disposal of fixed assets

Income (loss) before income taxes

43. Financial Summary (Year on Year)(Millions of yen)
For the year ended
March 31, 2009
Gross direct premiums written(Direct premiums written)

Underwriting income(Net premiums written)

Underwriting expenses

For the year ended
March 31, 2010

Change(%)

Change(Amount)

60,86867,0696,20110.2 %

60,86867,069

6,201

10.2

61,137

67,468

6,330

10.4

61,10667,440

6,334

10.4

44,211

49,185

4,974

11.3

(Net losses paid)

29,952

34,573

4,620

15.4

(

Loss adjustment expenses)

3,632

4,009

377

10.4

(Net commissions and brokerage fees)

1,063

1,271

208

19.6

717

681

(36)

(5.0)

Investment income(

Interest and dividends)

684

688

40.6

(

Gains on sale of securities)

61

7(53)

(87.5)

177

13(164)(92.6)

143

12(131)(91.6)

29－(29)(100.0)15,30816,3891,081

7.1

15,25916,301

1,041

6.8

Investment expenses
Losses on sale of securities(Devaluation losses on securities)

Operating, general and administrative expenses(

Operating, general and administrative
expenses for underwriting)

Other ordinary income (expenses), net
Ordinary profit(Underwriting profit

Extraordinary gains)

20

4

(16)

(79.1)

2,178

2,565

386

17.8

1,665

1,979

314

18.9

23

－

(23)

(100.0)Extraordinary losses

3,819

863

(2,956)(77.4)

Extraordinary gains (losses), net(3,795)(863)(2,932)－

Income before income taxes(1,617)

1,702

3,319

－

Income taxes-Current

765

658

(107)

(14.0)

Income taxes-Deferred(826)(561)

265－(60)

97

158

－

Net income (loss)(1,556)

1,604

3,161

－

Net loss ratio

55.0%

57.2%

Net expense ratio

26.7%

26.1%

Return on investments (income basis)

1.06%

0.93%

Return on investments (realized basis)

0.89%

0.94%

RatiosTotal income taxes(Reference) Return on investments (market value basis) : 0.65% for the year ended March 31, 2009 and 1.24% for the year ended March 31, 2010.
Notes 1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses for underwriting) ±Other income and expenses. Other income and expenses are such as corporate taxes associated with compulsory automobile liability
insurance.
2.Yield calculation methods are described in separate attachments.

5

Attachment

Yield Calculation Methods
1. Return on investments (income basis)
The results of investment in assets are indicated as income revenues (i nterest income and dividends).
Interest income and dividends on investment assets is the numerator, and yield based on acquisition costis the denominator.
・Numerator＝interest income and dividends
・Denominator = average balance based on the acquisition cost or amortized cost
2. Return on investments (realized basis)
The results of investment in assets are indicated as the contribution to net loss for the period(statements of income).
Realized profit and loss is the numerator, and yield based on the acquisition cost is the denominator.
・Numerator = i nvestment income +interest and dividends on deposits of premiums - investment expens
・Denominator = average balance based on acquisition cost or amortized cost3. Return on investments (market value basis)
An indicator of investment efficiency based on market value. Realized profit and loss plus net unrealized
gains is the numerator, and yield based on market value is the denominator.

Numerator = investment income + interest and dividends on deposits of premiums - investment expenses**+ (net unrealized gains at end of period - net unrealized gains at beginning of period )Denominator = average balance according to the acquisition cost or amortized cost
+ (net unrealized gains at end of period * - net unrealized gains at beginning of period *)*Amounts before tax deductions

64. Premiums and Losses Paid by Type of Policy
Direct Premiums Written(Millions of yen)
For the year ended March 31, 2010

For the year ended March 31, 2009
AmountComposition

YoY Change%%AmountComposition

YoY Change%%

Fire

379

0.6

38.6

278

0.4

(26.6)

Marine－－－－－－

Personal accident

6,653

10.9

5.4

6,941

10.4

4.3

Voluntary automobile

53,83588.4

12.0

59,84989.2

11.2－－－－－－

60,868

100.0

11.4

67,069100.010.2

Compulsory automobile liability
Total

Net Premiums Written(Millions of yen)
For the year ended March 31, 2010

For the year ended March 31, 2009
AmountComposition(%)

YoY Change(%)%

AmountComposition%

YoY Change%%

Fire

18

0.0

15.7

120.0(32.9)

Marine410.1(21.6)

20.0(94.2)

Personal accident

6,932

11.3

6.6

7,168

10.6

3.4

Voluntary automobile

53,61987.7

12.1

59,604

88.4

11.2

493

0.8

(15.7)

651

1.0

32.0

61,106

100.0

11.1

67,440

100.0

10.4

Compulsory automobile liability
Total

Net Losses Paid(Millions of yen)
For the year ended March 31, 2010

For the year ended March 31, 2009
AmountYoY Change(%)

Net loss ratio%

AmountYoY Change(%)%

Net loss ratio%%

Fire0(34.6)

69.4

0

45.9

75.9

Marine12(49.7)

30.8

2(76.6)125.4

Personal accident

1,368

13.5

22.4

1,479

8.1

22.9

Voluntary automobile

28,08814.4

58.8

32,555

15.9

61.1

484

8.1

98.0

535

10.5

82.1

29,952

14.2

55.0

34,573

15.4

57.2

Compulsory automobile liability
Total

5. Risk-Monitored Loans
None76. Securities
1. Trading-purpose securities
None
2. Held-to-maturity securities with fair value(Millions of yen)
As of March 31, 2010
Balance sheet
amountJapanesegovernment andFair value is higher than corporate bonds
balance sheet amountForeign securities

Fair value is lower thanbalance sheet amount

Fair value

Difference

50,936

51,543

607

598

616

18

subtotal
Japanesegovernment andcorporate bonds
Foreign securities

51,53452,159

625

3,526

3,476

(50)

399

392

(6)

subtotal

3,926
55,4603,869
56,028

(56)
568

Total
3. Available-for-sale securities with fair value(Millions of yen)
As of March 31, 2010
Balance sheet
amountAcquisition cost

10,063

9,983

79---

subtotal
Japanesegovernment and10,063

9,983

79

2,565

2,605(39)

Other

5,144

5,144-

7,710
17,773

7,750
17,733(39)40Japanesegovernment andFair value is higher than corporate bonds
acquisition cost
Other

Fair value is lower thanacquisition cost

subtotal
Total

Difference

4. Available-for-sale securities sold during the year

Japanese government and corporate bonds(Millions of yen)
For the year ended March 31, 2010
Amount of saleTotal gains on sale
Total losses on sale
249
7128

7. Solvency margin ratio(Millions of yen)(A) Total solvency margin
Capital or teasury
Reserve for price fluctuations

As of March 31, 2009

As of March 31, 2010

24,19527,444

13,852

15,456

1227

Contingency reserve

3

6

Catastrophe reserve

10,50011,918--Reserve for possible loan losses

(173)

36

Net unrealized gains on real estate--

Excess refund reserve--

Subordinated debt--

Deductible items--

Net unrealized gains on other securities (before subtracting tax effects)Other(B) Total risk

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

Ordinary insurance risk（Ｒ1）

--

4,872

5,388

4,097

4,599

Third-sector insurance risk（Ｒ2）00

Assumed interest rate risk（Ｒ3）810

Asset management risk（Ｒ4）

294

288

Business management risk（Ｒ5）

150

165

Major catastrophe risk（Ｒ6）

614

614

993.0 ％

1,018.5 ％Solvency margin ratio(C)[(A)／{(B)×1/2}]×100

Note: Calculations and figures included in the chart above apply the methods provided for under Articles 86 and 87 of the Insurance Business Law of Japan enforcement
regulations, as stipulated in 1996 Ministry of Finance Official Notification No. 50.

<Solvency Margin Ratio>
Non-life insurance companies maintain reserves to ensure their ability to pay claims when accidents occur and return contracted amounts at maturity on savings-typeinsurance. Non-life insurance companies must also maintain sufficient ability to pay in the event of a major catastrophe or a dramatic drop in the value of the assets they
hold—risk events outside the normal scope of expectations.
Total risk (item (B) in the table above) indicates dangers outside the general scope of expectations. The solvency margin ratio (item (C) in the table above) is an indicatorof an insurer’s ability to pay, calculated as prescribed by the Insurance Business Law of Japan, based on its percentage holdings of capital and other reserves (in otherwords, the total solvency margin: as indicated by (A) above).
“Risk events outside the normal scope of expectations” refers to the total of the amounts represented by the following risks.
：Risks outside the scope of risk incorporated into the rate of accident occurrence (excluding major catastrophe risks)(1) Insurance underwriting risks(Ordinary insurance risks)(Third-sector insurance risks)(2) Assumed interest rate risks：Risks that actual investment yields will fall below the investment yield assumed when calculating premiums(3) Asset management risks：Risks arising from such factors as unexpectedly large fluctuations in prices on owned securities and other assets(4) Business management risks：Unexpected risks to business management other than (1) through (3) above and (5)(5) Major catastrophe risks：Risks arising from major catastrophes (such as the Great Kanto Earthquake and the Ise Bay Typhoon)

A non-life insurer’s ability to pay (total solvency margin), as indicated by such factors as its capital and reserves is the total of the insurer’s net assets (excluding theamount of expected outflow from the company), reserves (such as the reserve for price fluctuations and special catastrophe reserves) and a portion of its net unrealized
gain on real estate.
The solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurers. If this ratio is 200% or higher, an insurer isjudged to have sufficient ability to satisfy claims and other payments.

9