February 13, 2019Sony Financial Holdings Inc.

Summary Information on Sony Assurance’s Financial Results
for the Nine Months Ended December 31, 2018

<Contents>

1. Balance Sheets

P.2

2. Statements of Income

P.3

3. Financial Summary

P.4

4. Premiums and Losses Paid by Type of Policy

P.5

5. Non-consolidated Solvency Margin Ratio

P.6

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between
original Japanese version and English translation version, the original Japanese version always prevails.

11. Balance Sheets
As ofMarch 31, 2018(Millions of yen)
As ofDecember 31, 2018

Assets:Cash and deposits

23,77814,257

Securities

145,349

159,402

Tangible fixed assets

2,407

1,761

Intangible fixed assets

6,196

8,360

Other assets

17,14916,617

Deferred tax assets

9,480

10,086204,362

210,487

156,612

165,670

Reserve for outstanding losses and claims

39,53540,915

Underwriting reserves

117,077

124,755

11,553

6,857

Income taxes payable

2,363

881

Others

9,190

5,976

Reserve for employees’ retirement benefits

1,667

1,802

Reserve for employees’ bonuses

1,132572

Reserve under the special laws

206

230

Reserve for price fluctuations

206

230

171,173

175,133

Common stock

20,00020,000Capital surplus

3,389

3,389

Retained earnings

7,872

10,740Total shareholders' equity

31,261

34,129Net unrealized gains (losses) on available-for-sale securities, net of taxes

1,927

1,224

Total valuation and translation adjustments

1,927

1,224

33,18935,354204,362

210,487

Total Assets
Liabilities:
Underwriting reserves

Other liabilities

Total Liabilities
Net Assets:
Shareholders’ equity

Valuation and translation adjustments

Total Net AssetsTotal Liabilities and Net Assets

22. Statements of Income(Millions of yen)
For the nine months ended
December 31, 2017
Ordinary Revenues

For the nine months ended
December 31, 201882,42286,296

81,062

84,74881,016

84,699

46

48

1,330

1,503

1,001

1,025

Gains on sale of securities

375

526

Transfer to interest and dividends on deposits of premiums

(46)

(48)

28

44

77,38378,902

Underwriting expenses

56,74058,410Net losses paid

38,53442,031

Loss adjustment expenses

5,574

6,025

Net commissions and brokerage fees

1,340

1,295Provision for reserve for outstanding losses and claims

2,524

1,380

Provision for underwriting reserves

8,767

7,677

－

0－

0

20,641

20,490

1

1

5,039

7,394

Extraordinary Gains－－

Extraordinary Losses

23

28

Losses on sale or disposal of fixed assets

14

Provision for reserve under the special laws

21

23

Provision for reserve for price fluctuations

21

23

Income Before Income Taxes

5,015

7,365

Income Taxes—Current

2,306

2,417

Income Taxes—Deferred(950)(332)

Total Income Taxes

1,355

2,085

Net Income

3,659

5,279

Underwriting incomeNet premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

Other ordinary income
Ordinary Expenses

Investment expenses
Losses on sale of securities
Operating, general and administrative expenses
Other ordinary expenses
Ordinary Profit3

3. Financial Summary (Comparison to previous year)(Millions of yen)
For the nine months
ended
December 31, 2017

For the nine months
ended
December 31, 2018

YoY change(Amount)

YoY change(%)

Gross direct premiums written

80,04383,924+3,880+4.8

Direct premiums written

80,04383,924+3,880+4.8

81,062

84,748+3,685+4.5

81,016

84,699+3,682+4.5

Underwriting expenses

56,74058,410+1,669+2.9

Net losses paid

38,53442,031+3,496+9.1

Loss adjustment expenses

5,574

6,025+451+8.1

Net commissions and brokerage fees

1,340

1,295(45)

(3.4)

1,330

1,503+172

+13.0

1,001

1,025

+23+2.4

375

526

+151

+40.4

－

0+0－－

0+0－

Operating, general and administrative expenses

20,641

20,490(150)(0.7)

Operating, general and administrative
expenses related to underwriting

20,594

20,435(158)(0.8)

2742+15+57.4

5,039

7,394+2,354+46.7

3,727

5,902+2,174+58.3

Extraordinary Gains－－－－

Extraordinary Losses

2328+5+22.7

Extraordinary gains (losses), net

(23)

(28)

(5)

－

Income Before Income Taxes

5,015

7,365+2,349+46.8

Income Taxes –Current

2,306

2,417+111+4.8

Income Taxes –Deferred

(950)

(332)

+618

－

Total Income Taxes

1,355

2,085+729+53.8

Net Income

3,659

5,279+1,620+44.3

Net loss ratio

54.4%56.7%

Net expense ratio

27.1%

25.7%

Underwriting income
Net premiums written

Investment income
Interest income and dividends
Gains on sale of securities
Investment expenses
Losses on sale of securities

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

Notes: 1. Underwriting profit = Underwriting income – (Underwriting expenses + Operating, general and administrative expenses related to underwriting) ± Other income (expenses)
Other income (expenses) is the amount equivalent to the corporate income taxes for compulsory automobile liability insurance, etc.
2. Ratios are calculated as follows:
Net loss ratio=(Net losses paid + Loss adjustment expenses) / Net premiums written x 100
Net expense ratio=(Net commissions and brokerage fees + Operating, general and administrative expenses related to underwriting) / Net premium written x 100

44. Premiums and Losses Paid by Type of Policy
Direct premiums written(Millions of yen)
For the nine months ended
December 31, 2017
AmountComposition

148

0.2

For the nine months ended
December 31, 2018

YoY change%

FireMarine

AmountComposition

244

0.3%
(12.7)

YoY change%%+64.5－－－－－－

Personal accident

6,515

8.1(1.0)

6,576

7.8

+0.9

Voluntary automobile

73,379

91.7

+10.2

77,103

91.9

+5.1

－

－

－－

－

－

80,043

100.0

+9.2

83,924

100.0

+4.8

Compulsory automobile liability

Total

Net premiums written(Millions of yen)

For the nine months ended
December 31, 2017
AmountComposition

For the nine months ended
December 31, 2018

YoY change%

AmountComposition%

YoY change%%

Fire110.0(36.6)

68

0.1

+502.5

Marine00.0－(0)(0.0)(100.0)

Personal accident

6,671

8.2(2.0)

6,653

7.9(0.3)

Voluntary automobile

73,20090.4+10.3

76,86590.8+5.0

Compulsory automobile liability

1,132

1.4+5.3

1,110

1.3(1.9)

Total

81,016

100.0

+9.1

84,699100.0+4.5

Net losses paid, net loss ratio(Millions of yen)

For the nine months ended
December 31, 2017
AmountYoY change

For the nine months ended
December 31, 2018

Net loss ratio%

AmountYoY change%

Net loss ratio%%

Fire5(4.7)

267.4

11+102.0

Marine2－322.4

10+273.5－

Personal accident

2,029

+5.7

33.5

2,218+9.3

37.1

Voluntary automobile

35,501+4.3

55.8

38,760

+9.2

57.9

995

+0.4

88.0

1,030

+3.5

92.8

38,534+4.3

54.4

42,031+9.1

56.7

Compulsory automobile liability

Total

559.5

5. Non-consolidated Solvency Margin Ratio(Millions of yen)
As of March 31, 2018
(A) Total non-consolidated solvency margin
Capital or treasury, etc.

As of December 31, 2018

54,244

63,41528,84934,129Reserve for price fluctuations

206

230

Contingency reserve

109116

Catastrophe reserve

20,97023,656－－2,409

1,530－－

Excess refund reserve－－

Subordinated debt
The portion of the excess refund reserve and subordinated debt
that is not included in the margin
Deductible items

－－－－－

－

1,698

3,751

13,871

14,534

12,39513,029General reserve for possible loan losses
Net unrealized gains on available-for-sale securities and net deferredgains (losses) on hedging instruments (before tax deductions)
Net unrealized gains on real estate

Others(B) Total non-consolidated risk

(R1+R2)2+(R3+R4)2+R5+R6Ordinary insurance risk

(R1)

Third-sector insurance risk

(R2)

－－

Assumed interest rate risk

(R3)

114

121

Asset management risk

(R4)

1,712

1,842

Business management risk

(R5)

305

320

(R6)

1,036

1,037

782.1 %

872.5 %

Major catastrophe risk(C) Non-consolidated solvency margin ratio[(A)／{(B)×1/2}]×100

Note: The above figures are calculated based on provisions in Articles 86 and 87 of the Ordinance for Enforcement of the Insurance
Business Act of Japan and Ministry of Finance Public Notice No. 50 of 1996.
A part of calculations for non-consolidated solvency margin ratio as of December 31, 2018 is calculated according tosimplified methods in major catastrophe risk. The figure is assumed to be equivalent to the amount as of September 30, 2018.
<Non-consolidated 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-type insurance. Non-life insurance companies must also maintain sufficient ability to cover against risk events
which exceed its normal estimates, i.e. occurrence of a major catastrophe or a dramatic drop in the value of the assets they hold.
Total risk (item (B) in the table) indicates risk events which exceed the normal estimates. The non-consolidated solvency margin ratio(item (C) in the table) is an indicator of an insurer’s ability to pay, calculated as prescribed by the Insurance Business Act of Japan,
based on its percentage holdings of capital and other reserves (in other words, the total non-consolidated solvency margin, as indicatedby (A) ).
“Risk events which exceed the normal estimates” refers to the total of the amounts represented by the following risks:: Risk which exceeds the normal estimates for the rate of accident occurrence(1) Insurance underwriting risk
(Ordinary insurance risk)(excluding major catastrophe risk)(Third-sector insurance risk)(2) Assumed interest rate risk
: Risk that actual investment yields will fall below the investment yield assumed whencalculating premiums: Risk arising from such factors as unexpectedly large fluctuations in prices on held securities(3) Asset management risk
and other assets(4) Business management risk
: Unexpected risk to business management other than (1) through (3) above and (5)(5) Major catastrophe risk

: Risk arising from major catastrophes (such as the Great Kanto Earthquake and theIse Bay Typhoon)

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

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