November 14, 2014
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2014
<Contents>
1. Key Performance Results(1) Policy Amount in Force and New Policy Amount(2) Annualized Premiums(3) Major P/L Items(4) Total Assets

P.2
P.2
P.3
P.3

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

P.4(2) Investment Policy(3) Results of Investment

P.4
P.5

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(2) Changes in General Account Assets by Category(3) Investment Income(4) Investment Expenses(5) Valuation Gains (Losses) on Trading-purpose Securities(6) Fair Value Information on Securities(7) Fair Value Information on Monetary Trusts (General Account)

P.6
P.6
P.7
P.7
P.8
P.8
P.10

4. Non-consolidated Balance Sheets

P.11

5. Non-consolidated Statements of Income

P.12

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

P.13

7. Loans by Borrower Category

P.14

8. Risk-monitored Loans

P.14

9. Solvency Margin Ratio(Reference) Consolidated Solvency Margin Ratio

P.15
P.16

10. Status of Separate Account Assets(1) Balance of Separate Account Assets(2) Policy Amount in Force (Separate Account)

P.17
P.17

1

1. Key Performance Results(1) Policy Amount in Force and New Policy Amount
Policy amount in force(Number: Thousand, Amount: 100 millions of yen, %)As of September 30, 2013

As of March 31, 2014

As of September 30, 2014

Category
NumberIndividual life insurance
Individual annuities
Subtotal

AmountNumberAmountNumber% YoYchangeAmount% change fromMarch 31, 2014

% YoYchange% change fromMarch 31, 2014

6,078

379,243

6,236

386,280

6,393

105.2

102.5

394,388

104.0

102.1

86

4,327

94

4,669

103

119.3

109.9

5,138

118.7

110.0

6,165

383,571

6,330

390,950

6,497

105.4

102.6

399,527

104.2

102.2

-

13,853－

14,052---

14,528

104.9

103.4

Group life insurance

51.5
52.0
Group annuities
557
287
551
－
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 have commenced.
2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves.

New policy amount(Number: Thousand, Amount: 100 millions of yen, %)For the six months ended September 30, 2013

For the six months ended September 30, 2014

Category
NumberIndividual life insurance

Amount240

18,446

New policies

Increase fromconversion

18,446-

NumberAmount% YoYchange

275

114.6

% YoY
change20,738

New policies

112.4

Increase fromconversion

20,738

-

6

302

302

-

10

162.4

535

177.2

535

-

246

18,74818,748

-

286

115.9

21,273113.5

21,273-

Group life insurance

-

45

45

-

-

51

113.2

51

Group annuities

-

-

-

-

-

-

-

-

Individual annuities
Subtotal

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

(2) Annualized Premiums
Policy amount in force
Category(Millions of yen, %)As of
September 30, 2013

As ofMarch 31, 2014

As of
September 30, 2014

% YoY change% change fromMarch 31, 2014

Individual life insurance

665,643

680,005

696,978

104.7

102.5

Individual annuities

15,855

16,98018,448

116.4

108.6

Total

681,498

696,986

715,427

105.0

102.6

165,048

167,075

169,757

102.9

101.6

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

New policies(Millions of yen, %)Category

For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

% YoY change

Individual life insurance

29,041

34,415

118.5

Individual annuities

1,126

1,800

159.8

30,16836,216

120.0

6,941

6,590

94.9

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

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

2

(3) Major P/L Items
Category(Millions of yen, %)For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

% YoY
ChangeIncome from insurance premiums

437,980454,032

103.7

Investment income

107,686

120,864

112.2

Insurance claims and other payments

155,054

173,004

111.6

4,085

4,566

111.8

Investment expenses(4) Total Assets(Millions of yen, %)Category
Total assets

As of March 31, 2014

As of September 30, 2014

6,624,903

6,959,132

3% Change fromMarch 31, 2014
105.0

2. Status of Investment Assets (General Account)(1) Investment Environment
During the six months ended September 30, 2014, the Japanese economy experienced a demand backlash
following the spike prior to the consumption tax hike, prompting a decline in certain economic indicators, but
the economy turned back onto a recovery trajectory. Real GDP growth (2nd preliminary figures1) was down
sharply, at a rate of negative 1.8% (annualized rate of minus 7.1%) during the April–June quarter. No
significant market panic was evident, however, as a decline in economic growth following the tax hike had been
anticipated. Looking at individual demand factors, the drop in private-sector housing was particularly
pronounced, at minus 10.4%, reflecting the backlash from a demand rush ahead of the tax increase. Nominal
GDP growth for the quarter was a negative 0.2% (annualized rate of minus 0.7%). Real GDP growth for theJuly–September quarter2 is expected to turn positive year on year, reflecting anticipated economic growth ascapital investment and personal consumption recovers.
The Japanese bond market performed steadily. The Bank of Japan (BOJ) followed a policy of qualitative andquantitative easing, providing cash to the economy through purchases of Japanese government bonds (JGBs).
Accordingly, long-term interest rates continued to decline. As an indicator on this trend, yields on 10-year
JGBs dropped from 0.642% on March 31 to 0.493% in August. Moving into September, emerging observationsof an early rise in the U.S. interest rates combined with selling to lock in profits caused yields on 10-year JGBs
to rise to 0.582% at one point. Thereafter, the BOJ pumped funds into the economy, forcing down interest rates
and driving long-term yields back down. As of September 30, 2014, yields on 10-year JGBs were 0.531%, downslightly from their level on March 31.
Stock market performance was firm. An April dip in the U.S. stock market and temporary yen appreciation
caused the Nikkei Stock Average to fall at one point to ¥13,910.16, from ¥14,827.83 on March 31. After thatpoint, however, the Government Pension Investment Fund reallocated its investment assets, and expectations
that the fund would increase its percentage of investments in equities prompted a gradual increase in stock
prices. Also, moving into September, emerging observations of an early rise in the U.S. interest rates led to
rapid yen depreciation against the U.S. dollar and gave the stock market a boost. Consequently, on September
25 the Nikkei hit a high for the year, of ¥16,374.14. As of September 30, 2014, the Nikkei average was¥16,173.52, up from its March 31 level.
On foreign exchange markets, the yen moved from the lower ¥100s against the U.S. dollar up into the regionof ¥109 to the dollar. Between April and August, the yen traded in a tight range of ¥101–103 against the dollar
with little amplitude. From August onward, emerging observations of an early rise in U.S. interest rates led to
rapid yen depreciation against the U.S. dollar, with the yen falling from ¥103.23 as of March 31 to ¥109.65 on
September 30. In yen/euro trading, uncertainty about the Eurozone economy caused the yen to remain firm
against the euro. As of September 30, the yen was trading at ¥138.49 against the euro, compared with ¥142.13
on March 31.

(2) Investment Policy
Our investment policy is to understand the characteristics of insurance liabilities, and prioritize investment in theassets that meet such characteristics based on the concept of ALM (asset liability management, the comprehensive
management of assets and liabilities). Specifically, Sony Life is investing primarily in ultra long-term JGBs withlonger remaining maturity, to meet the long-term liabilities of life insurance policies, in an effort to maintainadequate control over the risks associated with interest rate fluctuations involved in such insurance liabilities. On the

1 Announced on September 8, 2014
2 Initial preliminary report expected on November 17, 20144

other hand, it is our policy to invest within certain limits in riskier assets including stocks.
(3) Results of Investment
As of September 30, 2014, general account assets totaled ¥6,257.0billion, up 4.6%, or ¥272.7 billion, from a year
earlier. Within general account assets, domestic bond investment totaled ¥5,390.7 billion (accounting for 86.2% of
total general account assets), foreign bonds ¥93.5 billion (1.5%), Japanese stocks ¥36.1 billion (0.6%), monetarytrusts ¥308.8 billion (4.9%), policy loans ¥158.5 billion (2.5%), real estate ¥118.5 billion (1.9%), and cash anddeposits and call loans ¥35.9 billion (0.6%).

5

3. Status of Investment Assets (General Account)(1) Portfolio of General Account Assets(Millions of yen)

Category
Cash and deposits, call loans
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
Securities under proprietary accounts
Monetary trusts
Securities
JGBs, other bonds
Japanese stocks

As of March 31, 2014
Amount%32,617－－－－305,346
5,334,049
5,190,065
33,205

Foreign securities
Bonds
Stocks, etc.
Other securities
Loans
Real estate
Deferred tax assets
Other assets
Reserve for possible loan losses
Total
Of which, foreign-currency-denominated assets

0.5
－
－
－
－
5.1
89.1
86.7
0.6

As of September 30, 2014
Amount%35,961－－－－
308,8025,549,851
5,390,794
36,139

0.6
－
－
－
－
4.9
88.7
86.2
0.6

106,752

1.8

120,191

1.9

79,835
26,916
4,026
154,219
66,532
13,64378,173(242)
5,984,341
58,195

1.3
0.4
0.1
2.6
1.1
0.2
1.3
(0.0)
100.0
1.0

93,50026,691
2,726
158,530
118,526
5,578
80,084(264)
6,257,071
71,458

1.5
0.4
0.0
2.5
1.9
0.1
1.3
(0.0)
100.0
1.1

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

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

Category

For the six months ended
September 30, 2013

Cash and deposits, call loans
Securities repurchased under resale agreements
Pl d d money forf bondb d borrowingbi transactioniPledgedMonetary 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-currency-denominated assets(57,847)－－－－(3,589)300,863
287,325
4,895
8,503
7,603
899
138
4,709
(2,909)
2,037
526
(6)
243,783
5,625

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

6

For the six months ended
September 30, 2014
3,344
－
－
－
－
3,456
215,801
200,729
2,933
13,43913,665(225)(1,300)4,310
51,993(8,065)1,910(21)272,730
13,263

(3) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2013

Interest income and dividends

For the six months ended
September 30, 2014
58,971

Interest income from deposits

65,8790

0Interest income and dividends from securities

50,98857,739Interest income from loans

2,820

2,937

Income from real estate for rent

5,145

5,170

17

32

Other

－

－

Income from monetary trusts, net

2,674

2,646

Income from trading securities, net－

91

Gains on sale of securities

1

3,889

Gains on sale of Japanese bonds

1

3,080

Gains on sale of Japanese stocks－

808

Gains on sale of foreign securities

－

－

Other

－

－

Gains on securities under proprietary accounts

01

Gains on derivatives, net

172

33

Foreign exchange gains, net

－

1,832

Reversal of reserve for possible loan losses－－

Other investment income

37

61,824

74,381

Gains on redemption of securities

Total(4) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

Interest expenses

24

15

Losses on securities under proprietary accounts－－

Losses on monetary trusts, net－－

Losses on trading securities, net－－

Insurance claims and other payments－－

Losses on sale of Japanese bonds－－

Losses on sale of Japanese stocks－－

Losses on sale of foreign securities

－

－

Other

－

－

－

－

Devaluation losses on Japanese bonds－－

Devaluation losses on Japanese stocks－－

Devaluation losses on foreign securities

－

－

Other

－

－

Devaluation losses on securities

Losses on redemption of securities－

0

Losses on derivatives, net－－

Foreign exchange losses

91－

Provision for reserve for possible loan losses

6

22

－

－

Depreciation of real estate for rent and others

1,039

969

Other investment expenses

2,923

3,559

4,085

4,566

Write-off of loans

Total

7

(5) Valuation Gains (Losses) on Trading-purpose Securities(Millions of yen)

As of March 31, 2014
Category
Balance sheet amount

As of September 30, 2014

Net valuation
gains (losses)
recorded inincomeBalance sheet amount

Net valuation
gains (losses)
recorded inincome

-

2,092

64

-

Trading-purpose securities

Note: The chart above includes trading-purpose securities in "monetary trusts" etc.

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

As of September 30, 2014

As of March 31, 2014
Net unrealized gains (losses)
Category

Held-to-maturity securities

Carrying
amountFair value

Net unrealized gains (losses)

Unrealized Unrealized
gains
lossesCarrying
amountFair value

Unrealized
gains

Unrealized
losses4,409,662

4,839,983

430,320

430,39473

4,629,771

5,152,937

523,166

523,166-

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

0

Available-for-sale securities

1,065,514

1,189,899

124,384

124,42035

1,044,124

1,187,248

143,124

143,124

JGBs, other bonds

1,035,912

1,146,757

110,844

110,866

22

1,012,825

1,139,139

126,314

126,314-

Japanese stocks

12,236

21,205

8,968

8,972

3

12,584

24,13911,554

11,5550Foreign securities

15,891

19,403

3,511

3,521

10

18,023

22,669

4,645

4,645

-

15,891

19,403

3,511

3,521

10

18,023

22,669

4,645

4,645

-

-

-

-

-

-

-

-

-

-

-

Bonds
Stocks, etc.
Other securities

1,474

2,533

1,059

1,059

-

691

1,300

609

609

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Oh
Others

-

-

-

-

-

-

-

-

-

-

5,475,177

6,029,882

554,705

554,814

109

5,673,896

6,340,186

666,290666,2900JGBs, other bonds

5,385,143

5,913,448

528,305

528,327

22

5,572,859

6,205,956

633,096

633,096-

Japanese stocks

12,236

21,205

8,968

8,972

3

12,584

24,13911,554

11,5550Foreign securities

76,323

92,695

16,371

16,45584

87,760108,790

21,02921,029-76,323

92,695

16,371

16,45584

87,760108,790

21,02921,029

-

-

-

-

-

-

-

-

-

-

-

Total

Bonds
Stocks, etc
Other securities

1,474

2,533

1,059

1,059

-

691

1,300

609

609

-

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. The above table included monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as of September 30, 2014 amounted to¥268,705 million and ¥40,671 million respectively.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

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

As of March 31, 2014

As of September 30, 2014

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

16,00016,000Available-for-sale securities

17,28916,369Unlisted domestic stocks (except OTC stocks)--

Unlisted foreign stocks (except OTC stocks)

823

757

Unlisted foreign bonds
OthersTotal--

16,466

15,61133,28932,369c. Fair Value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b(Millions of yen)
As of March 31, 2014
Category

Held-to-maturity securities
Policy reserve matching bonds
Stocks of subsidiaries and affiliated companies

As of September 30, 2014

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Net unrealized gains (losses)

Carrying
amountUnrealized
lossesFair value

Unrealized
gains

Unrealized
losses4,409,662

4,839,983

430,320

430,39473

4,629,771

5,152,937

523,166

523,166

-

-

-

-

-

-

-

-

-

-

-

16,00016,000---16,00016,000---1,082,804

1,214,309

131,504

131,986481

1,060,493

1,211,365

150,871

151,368

497

JGBs, other bonds

1,035,912

1,146,757

110,844

110,866

22

1,012,825

1,139,139

126,314

126,314-

Japanese stocks

12,236

21,205

8,968

8,972

3

12,584

24,13911,554

11,5550Foreign securities

16,714

21,129

4,414

4,424

10

18,781

24,620

5,839

5,839

-

15,891

19,403

3,511

3,521

10

18,023

22,669

4,645

4,645

-

Stocks, etc.

823

1,725

902

902

-

757

1,951

1,193

1,193

-

Other securities

17,94025,217

7,277

7,723

446

16,303

23,466

7,162

7,659

496

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

5,508,467

6,070,292

561,825562,381555

5,706,265

6,380,302

674,037

674,534

497

JGBs, other bonds

5,385,143

5,913,448

528,305

528,327

22

5,572,859

6,205,956

633,096

633,096-

Japanese stocks

24,23633,205

8,968

8,972

3

24,58436,13911,554

11,5550-

Available-for-sale securities

Bonds

Total

Foreign
F i securities
iti

81 146
81,14698
98,420420

1717,273273

17
17,357357

84

92
92,518518

114
114,741741

22
22,223223

22
22,223223

Bonds

76,323

92,695

16,371

16,45584

87,760108,790

21,02921,029-Stocks, etc

4,823

5,725

902

902

-

4,757

5,951

1,193

1,193

-

Other securities

17,94025,217

7,277

7,723

446

16,303

23,466

7,162

7,659

496

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

9

(7) Fair Value Information on Monetary Trusts (General Account)(Millions of yen)

As of March 31, 2014
Category

Monetary trusts

Net unrealized gains (losses)

Balance
Fair value
sheet amount
305,346

As of September 30, 2014

305,346

Unrealized Unrealized
gains
losses-Balance sheet
Fair value
amount308,802308,802

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

Monetary trusts for investment(Millions of yen)

As of March 31, 2014
Category

As of September 30, 2014

Net valuation gains (losses)
recorded in income

Balance sheet amount-

Monetary trusts for investment

Net valuation gains (losses)
recorded in income

Balance sheet amount

-

-

-

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

As of March 31, 2014
Category

As of September 30, 2014

Net unrealized gains (losses)
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

-

-

-

-

-

-

-

-

-

-

268,042

305,296

37,25337,253-

268,080

308,752

40,671

40,671-Other monetary trusts

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

10

4. Non-consolidated Balance Sheets(Millions of yen)

Assets:Cash and deposits
Cash
Deposits
Call loans
Monetary trusts
Securities
Japanese government bonds

As ofMar. 31, 2014

As of
Sep. 30, 2014

AmountAmountLiabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
Other liabilities

15,827
4
15,82334,628305,346
5,954,716
5,316,110

13,682
2
13,68036,915308,8026,235,631
5,526,571

Japanese municipal bonds

3,869

2,073

Japanese corporate bonds
Japanese stocks
Foreign securities
Other securities
Loans
Policy loans
Commercial loans
Tangible fixed assets
Land
Buildings
Leased assets
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Due from reinsurers
Other assets
Other receivable
Prepaid expenses
Accrued income
Money on deposits
Derivative financial instuments
Advance payments
Others
Prepaid pension costs
Deferred tax assets
Reserve for possible loan losses

38,74670,442
342,187
183,359
154,219
154,18038
67,10030,10336,42919548
23,86923,8599
138
53,78730,954
1,532
16 60016,6004,182

29,861
79,058389,738
208,329
158,530
158,512
17
119,052
83,00735,51917508
22,10422,0949653
56,21234,0161,493
16 142
16,142
4,025
27
402
105
2,233
5,578
(264)

Net unrealized gains on other securities, net of taxes

6,959,132

Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

Total Assets

400
117
1,867
13,643(242)

6,624,903

As ofMar. 31, 2014

As of
Sep. 30, 2014

AmountAmount6,152,574
24,702
6,123,633
4,237
2,169
567
32,812

Cash received as collateral under
securitie lending taransactions

Accrued income tax
Other payables
Accrued expenses
Unearned income
Deposits received
Deposits received for guarantee
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 on land revaluation
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserve
Retained earnings
Earned reserve
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity

11

6,446,288
28,584
6,413,422
4,280
2,067
490
46,638-

10,2908,702
1,213
13,566
939
823
5,058
21
654
1,832
25,38966
41,556
41,556536

13,04198
13,745
927
437
5,098
18
661
2,319
18,39778
42,17542,175536

6,255,673

6,556,673

70,000
5 865
5,865
5,865
211,461
18,138
193,323
193,323
287,327
83,416(1,513)
81,903369,230
6,624,903

70,000
5 865
5,865
5,865
231,105
20,798210,307210,307306,970
97,002(1,513)
95,488402,459
6,959,132

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

For the six months ended
September 30, 2013

For the six months ended
September 30, 2014

AmountAmount549,531437,980
437,632
348
107,686
58,971050,988
2,820
5,145
17
2,674

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
Income from trading securities, net
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 from 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 redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Operating expenses
Other ordinary expenses
Payments of deferred claims
Taxes
Depreciation and amortization
Provision for reserve for employees' retirement
Provision for reserve for directors' retirement
OthersOrdinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
OthersProvision for Reserve for Policyholders' Dividends
Income Before Income Taxes
Income Taxes -current
Income Taxes -deferred
Total Income Taxes
Net Income

1
0
172
3
45,862
3,863
741
577
2,543
518,229
155,054
37,6095,106
19,37890,4101,616
933
294,006
55
293,946
4
4,085
24
91
6
1,039
2,923
55,872
9,210
1,092
3,784
2,482
1,746
105
31,302
4,118
19
0
4,078
4,078
19
62
27,120
8,053
1,367
9,421
17,69912579,390454,032
453,263768
120,864
65,879057,739
2,937
5,170
32
2,646
91
3,889
1
33
1,832
7
46,483
4,493
2,077
802
1,612
538,963
173,004
40,082
5,215
20,664
104,652
1,430
958
293,672
3,882
289,788
1
4,566
15
0
22
969
3,559
56,834
10,885
1,240
5,226
2,632
1,774
11
0
40,427
633
15
0
618
618
219
39,573
13,240(619)
12,621
26,952

6. Reconciliation to Core Profit and Non-consolidated Ordinary Profit(Millions of yen)

For the six months ended
September 30, 2013
Core profit

A

Capital gains

For the six months ended
September 30, 2014

33,586

38,598215

5,845

Income from monetary trusts, net--

Income from trading securities, net-

90

Gains on sale of securities

1

3,889

Gains on derivatives, net

172

33

Foreign exchange gains, net

-

1,832

Other capital gains

41-

Capital losses

285

1,428

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

91

-

193

1,428

Net capital gains (losses)

Other capital losses
B

(69)

4,417

Core profit plus net capital gains (losses)

A+B

33,51643,015--

Gains from reinsurance--

Reversal of contingency reserve-

0

Reversal of specific reserve for possible loan losses--

Other one-time gains

OthersOther one-time losses
Losses from reinsurance
Provision for contingency reserve

-

-

2,214

2,588

-

-

2,103

2,455

Provision for specific reserve for possible loan losses

6

21

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

Write-off of loans--

OthersNet other one-time gains (losses)
Ordinary profit

104

111

C

(2,214)(2,588)

A+B+C

31,30240,427

Notes:
1. Core profit for the six months ended September 30, 2013 (A) includes income gains of ¥2,674 million in income from monetary trusts; other capital gains include
reversal for policy reserves and others of ¥41 million for currency market fluctuations of products dominated in foreign currencies; other capital losses include
impairment losses of ¥193 million from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥104 million.
2.Core profit for the six months ended September 30, 2014 (A) includes income gains of ¥2,646 million in income from monetary trusts and interest income anddividends of ¥0 million in income from trading securities, net; other capital gains include reversal for policy reserves and others of ¥1,288 million for currency
market fluctuations of products dominated in foreign currencies and impairment losses of ¥139 million from investment partnership; "Others" of other one-timelosses included provision of additional policy reserve of ¥111 million.

13

7. Loans by Borrower Category(Millions of yen, %)Category

As of September 30, 2014

As of March 31, 2014

Bankrupt and quasi-bankrupt loans
Doubtful loans
Sub-standard loans
Subtotal[% to total]
Normal loans
Total

[-]
156,815
156,815[-]
170,178
170,178

Notes:

1.Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization or 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 obligors) 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 interest 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, deferral of interest payments, extension of principal repayments or debt waiver) in 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.

8. Risk-monitored Loans
Not applicable149. Solvency Margin Ratio(Millions of yen)

Category
Total solvency margin

As of March 31, 2014

(A)

As of September 30, 2014

954,157

1,059,548

Common stock, etc.

274,027

306,074

Reserve for price fluctuations

41,55642,175

Contingency reserve

63,671

66,12700118,354

135,784

Net unrealized gains on real estate multiplied by 85% (100% if losses)

75

3,897

Amount excluded from deferred tax assets

-

-

174

1,088

Deferred tax assets

78,868

93,118

Excess amount of policy reserves based on Zillmer method

400,056

413,281

General reserve for possible loan losses
Net unrealized gains on other securities multiplied by 90% (100% if losses)

Unallocated portion of reserve for policyholders' dividends--

The portion of the excess amount if policy reserves based on Zillmer method andsubordinated debt that is not included in the margin(20,626)-

Deductible items(2,000)(2,000)80,904

84,409Subordinated debt

Total risk

(R1  R8 ) 2  (R2  R3  R7 ) 2  R4

(Ｂ)

Insurance risk

R1

22,512

22,957

Third-sector insurance risk

R8

8,368

8,423

Assumed interest rate risk

R229,616

29,839Minimum guarantee risk

R712,896

13,843

Asset management risk

R330,02332,357

Business management risk

R4

2,068

2,148

2,358.7%

2,510.4%

Solvency margin ratio
(A)
x 100
(1/2) x (B)Not 1. The figures were calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance Business Act of Japanand the Ministry of Finance Public Notice No. 50 of 1996.
2. Minimum guarantee risk was calculated based on the standardized approach.

15

(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, 2014

Total solvency margin

As of September 30, 2014

931,256

1,038,948

Common stock, etc.

267,645299,387

Reserve for price fluctuations

41,55642,175

Contingency reserve

63,671

66,127

Catastrophe reserve－－

General reserve for possible loan losses

00118,354

135,78475

3,897(2,768)(2,319)

－

－

174

1,088

Deferred tax assets

78,868

93,118

Excess amount of policy reserves based on Zillmer method

400,056

413,281－－

The portion of the excess amount if policy reserves based on Zillmer
method and subordinated debt that is not included in the margin(27,008)(4,503)

Deductible items(9,369)(9,088)77,16080,64722,512

22,957

－

－

－

－

8,368

8,423

－

－

(A)

Net unrealized gains on other securities multiplied by 90% (100% if
losses)Net unrealized gains on real estate multiplied by 85% (100% if
losses)Total amount of unrecognized actuarial differences, andunrecognized past service cost
Amount excluded from deferred tax assets
Unallocated portion of reserve for policyholders' dividends

Subordinated debt

(B)

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

R9

Assumed interest rate risk

R229,616

29,839Minimum guarantee risk

R712,896

13,843

Asset management risk

R326,02328,357

Business management risk

R4

1,988

2,068

2,413.8%

2,576.5%

Insurance claims and other payments

(A)
x 100
(1/2) x (B)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.
3. "Total amount of unrecognized actuarial differences, and unrecognized past service cost" is included in calculationfrom March 31
31, 2014
2014.

16

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

Category

As of March 31, 2014

Individual variable life insurance and individual variable annuities

As of September 30, 2014
640,562Group annuities

702,061-

Total separate account-

640,562702,061

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

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

Individual variable life insurance
As of March 31, 2014

Category

NumberAs of September 30, 2014

AmountNumberAmountVariable life insurance (whole life type)610

7,302,062

639

7,502,024

Variable life insurance (limited term type)47

164,50852

184,539

Variable life insurance (term type)1

45,8071

44,802659

7,512,377

693

7,731,366

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

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

As of March 31, 2014

Category

NumberIndividual variable annuities

As of September 30, 2014

Amount30

161,758

NumberAmount35

Note: 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 whichannuity payments have not yet commenced and (b) the amount of policy reserves for policies for which payments have commenced.

17

190,178