November 15, 2013
Sony Financial Holdings Inc.

Summary Information on Sony Life’s Financial Results
for the Six Months Ended September 30, 2013
<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(2) Investment Policy(3) Results of Investment

P.4
P.4
P.4

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.5
P.5
P.6
P.6
P.7
P.7
P.9

4. Non-consolidated Balance Sheets

P.10

5. Non-consolidated Statements of Income

P.11

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

P.12

7. Loans by Borrower Category

P.13

8. Risk-monitored Loans

P.13

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

P.14
P.15

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

P.16
P.16

(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments

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, 2012

As of March 31, 2013

As of September 30, 2013

Category
NumberIndividual life insurance

Amount5,749

Individual annuities

Number363,239

Amount

5,958

% YoY
changeNumber373,663

6,078% change fromMarch 31, 2013

105.7

102.0

% YoY
changeAmount379,243% change fromMarch 31, 2013

104.4

101.5

74

3,828

82

4,127

86

116.6

105.8

4,327

113.0

104.9

5,823

367,068

6,041

377,790

6,165

105.9

102.0

383,571

104.5

101.5

Group life insurance-

13,110-13,456---

13,853

105.7

103.0

Group annuities

-

574

-

565

-

-

-

557

97.0

98.7

Subtotal

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, 2012

For the six months ended September 30, 2013

Category
NumberIndividual life insurance
Individual annuities

AmountNew policies

Increase fromconversion% YoYchangeNumber% YoYchangeAmountNew policies

270

19,942

19,942-240

89

18,44692.5

18,446

-

4

197

197

-

6

150.7

302

153.2

302

-

-

-

274

20,13920,139246

89.918,74893.1

18,748Group life insurance

-

25

25

-

-

45

181.8

45

Group annuities

-

-

-

-

-

-

-

-

Subtotal

Increase fromconversion

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, 2012

As ofMarch 31, 2013

As of
September 30, 2013

% YoY change% change fromMarch 31, 2013

Individual life insurance

634,386

654,723

665,643

104.9

101.7

Individual annuities

14,18815,21415,855

111.7

104.2

648,575

669,937

681,498

105.1

101.7

153,101

158,686

165,048

107.8

104.0

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

New policies(Millions of yen, %)Category
Individual life insurance
Individual annuities
Total
Of which, medical protection,living benefit protection, etc.

For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

% YoY change

29,041

92.5

31,394
768

1,126

146.7

32,16230,168

93.8

8,119

6,941

85.5

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.) andproducts 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, 2012

For the six months ended
September 30, 2013

% YoY
ChangeIncome from insurance premiums

428,846437,980

102.1

Investment income

56,005

107,686

192.3

Insurance claims and other payments

135,344

155,054

114.6

Investment expenses

18,752

4,085

21.8

(4) Total assets(Millions of yen, %)Category
Total assets

As of March 31, 2012

As of September 30, 2013

5,952,750

6,247,480

3% Change fromMarch 31, 2013
105.0

2. Status of Investment Assets (General Account)(1) Investment Environment
During the six months ended September 30, 2013, the Japanese economy remained robust. Real GDP (2nd preliminary figures1)
grew at a rate of 0.9% (annualized rate of 3.8%) during the April–June quarter, marking the third consecutive quarter of growth.
Contributing to this expansion were demand factors such as capital investment and personal consumption. Growth in nominal
GDP was 0.9% (annualized rate of 3.7%). Real GDP2 for the July–September quarter is expected to reflect somewhat weakereconomic growth; although a recovery in capital investment and housing is expected, the recovery in personal consumption is
likely to ease.
The Japanese bond market experienced significant changes. Long-term interest rates plunged following the introduction of
the “qualitative and quantitative easing” announced by the Bank of Japan on April 4, 2013. As a result, yields on 10-year
Japanese government bonds (JGBs), an indicator of long-term interest rates, fell at one point from 0.551% as of March 31, 2013,
to 0.325%—their lowest level on record. Moving into May, long-term interest rates turned back upward sharply as investors
sold to lock in returns and due to a heightened sense that the United States might scale back its asset purchases, pushing yields
on 10-year JGBs back upward to 0.996% at one point. Thereafter, the Bank of Japan’s purchases of JGBs put downward
pressure on interest rates, causing long-term interest rates to fall back. For these reasons, prices remained volatile during theperiod. As of September 30, 2013, yields on 10-year JGBs were 0.686%, up slightly from their level as of March 31.
Stock market performance was firm. Against a backdrop of monetary easing by the Bank of Japan and ongoing yen
depreciation, the Nikkei Stock Average rose from ¥12,397.91 on March 31, 2013, to ¥15,942.60 at one point in May. Given theensuing sense of overheating, the market was characterized by an increase in selling to lock in profits, which pushed the Nikkei
down to ¥12,415.85 at one point in June. After rising in July in tandem with the Upper House elections, the Nikkei remained in
the range between ¥13,000 and ¥15,000. As reports of positive corporate performance increased, the lower end of the range
trended upward. On September 30, 2013, the Nikkei closed at ¥14,455.80, up from its level as of March 31, 2013.
On foreign exchange markets, the yen traded primarily in the upper ¥90s against the U.S. dollar. The introduction of the“qualitative and quantitative easing” announced by the Bank of Japan in April, suggestions by U.S. Federal Reserve Board
Chairman Ben Bernanke that the Fed might cut back on its asset purchases prompted depreciation of the yen from ¥94.22 to the
U.S. dollar as of March 31, 2013, to ¥103.74 at one point in May. After that point, prices in emerging country stock markets
softened due to the return of funds that had flowed there on concerns that the scale of U.S. quantitative easing might bedecreasing, and yen buying prompted appreciation against the dollar, to ¥93.79 at one point in June. From July, the yen traded ina range of the upper ¥90s against the U.S. dollar. As of September 30, 2013, the yen was trading at ¥98.27 to the U.S. dollar.
With a growing sense that economic indicators were bottoming out in the eurozone, the euro exchange rate remained strong
against the yen. As of September 30, 2013, the yen was trading at ¥132.93 against the euro, compared with ¥120.76 as of March
31, 2013.
(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 a long 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 September 30, 2013, general account assets totaled ¥5,645.9 billion, up 4.5%, or ¥243.7 billion, from March 31, 2013.
Within the general account assets, investment in Japanese government and corporate bonds totaled ¥4,848.3 billion (accounting
for 85.9% of total general account assets), foreign bonds ¥69.6 billion (1.2%), Japanese stocks ¥36.0 billion (0.6%), monetarytrusts ¥302.5 billion (5.4%), policy loans ¥149.7 billion (2.7%), real estate ¥67.3 billion (1.2%), and cash and deposits and callloans ¥45.4 billion (0.8%).
1
2

Announced on September 9, 2013
Initial preliminary report expected on November 14, 20134

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
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

As of March 31, 2013
Amount%103,321306,122
4,683,747
4,561,048
31,10687,42862,022
25,406
4,164
145,104
70,301
13,72480,038(235)
5,402,126
41,756

1.9
5.7
86.7
84.4
0.6
1.6
1.1
0.5
0.1
2.7
1.3
0.3
1.5
(0.0)
100.0
0.8

As of September 30, 2013
Amount%45,474
0.8
302,532
5.4
4,984,611
88.3
4,848,373
85.9
36,001
0.6
95,932
1.7
69,626
1.2
26,305
0.5
4,303
0.1
149,813
2.7
67,392
1.2
15,7620.3
80,565
1.4
(0.0)
(242)
5,645,909
100.0
47,3820.8

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, 2012

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
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(6,306)
7,223
257,473
268,929(12,151)
427
984
(557)
268
2,092
(858)
(3,414)5,718(1)
261,926(176)

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

5

For the six months ended
September 30, 2013(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

(3) Investment Income(Millions of yen)

Category

For the six months ended
September 30, 2012

Interest income and dividends

For the six months ended
September 30, 2013
52,199Interest income from deposits

58,9710

0Interest income and dividends from securities

44,04850,988Interest income from loans

2,705

2,820

Income from real estate for rent

5,431

5,145

14

17

Other
Gains on securities under proprietary accounts
Income from monetary trusts, net
Income from trading securities, net
Gains on sale of securities

-

-

2,622

2,674

-

-

1,169

1

Gains on sale of Japanese bonds

01

Gains on sale of Japanese stocks

1,169

-

Gains on sale of foreign securities

-

-

Other

-

-

Gains on redemption of securities-

0

Gains on derivatives, net-

172

Foreign exchange gains, net--

Reversal of reserve for possible loan losses--

Other investment income

13

3

56,00561,824Total(4) Investment Expenses(Millions of yen)

Category

For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

Interest expenses

22

24

Losses on securities under proprietary accounts--

Losses on monetary trusts, net--

Losses on trading securities, net--

Losses on sale of securities

201-

Losses on sale of Japanese bonds--

Losses on sale of Japanese stocks

201-

Losses on sale of foreign securities

-

-

Other

-

-

Devaluation losses on securities

327-

Devaluation losses on Japanese bonds--

Devaluation losses on Japanese stocks

327-

Devaluation losses on foreign securities

-

-

Other

-

-

Losses on redemption of securities--

Losses on derivatives, net--

Foreign exchange losses

444

91

Provision for reserve for possible loan losses

1

6

Write-off of loans--

Depreciation of real estate for rent and others

1,059

1,039

Other investment expenses

3,156

2,923

5,213

4,085

Total

6

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

As of March 31, 2013

As of September 30, 2013

Net valuation
gains (losses)
recorded inincomeCategory
Balance sheet amount-

Trading-purpose securities

Net valuation
gains (losses)
recorded inincomeBalance sheet amount

-

-

-

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, 2013

As of March 31, 2013
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
losses3,874,232

4,425,970

551,737

551,737-

4,129,033

4,548,069

419,035

419,274

238

Policy reserve matching bonds

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries andaffiliated companies

-

-

-

-

-

-

-

-

-

-

Available-for-sale securities

955,999

1,079,296

123,296

123,34447

1,009,034

1,119,633

110,598

111,281682

JGBs, other bonds

925,308

1,036,956

111,648

111,648-974,981

1,072,448

97,467

97,886

419

Japanese stocks

14,76020,994

6,233

6,281

47

16,24824,997

8,748

8,941

192

Foreign securities

14,454

18,681

4,226

4,226

-

16,32919,741

3,412

3,483

70

14,454

18,681

4,226

4,226

-

16,313

19,726

3,412

3,483

70

-

-

-

-

-

15

15

(0)

-

0

1,476

2,664

1,188

1,188

-

1,476

2,445

969

969

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

4,830,232

5,505,267

675,034

675,082

47

5,138,068

5,667,703

529,634

530,555

921

JGBs, other bonds

4,756,200

5,410,686

654,486

654,486-

5,054,115

5,559,286

505,171505,590419

Japanese stocks

14,76020,994

6,233

6,281

47

16,24824,997

8,748

8,941

192

Foreign securities

57,79570,922

13,126

13,126-

66,22880,973

14,744

15,053309

57,79570,922

13,126

13,126-

66,21380,95814,744

15,053

309

-

-

-

-

-

15

15

(0)

-

0

1,476

2,664

1,188

1,188

-

1,476

2,445

969

969

-

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

Bonds
Stocks, etc.
Other securities

Total

Bonds
Stocks, etc
Other securities

Notes:
1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Law 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, 2013 amounted to¥268,631 million and ¥34,577 million respectively.
3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

7

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

As of March 31, 2013

As of September 30, 2013

Held-to-maturity securities--

Unlisted foreign bonds--

Others--

Policy reserve matching bonds--

Stocks of subsidiaries and affiliated companies

12,607

15,000Available-for-sale securities

20,372

18,758Unlisted domestic stocks (except OTC stocks)

4

4

Unlisted foreign stocks (except OTC stocks)

948

943

Unlisted foreign bonds
OthersTotal--

19,41917,81032,98033,758c. 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, 2013
Category

Held-to-maturity securities

As of September 30, 2013

Net unrealized gains (losses)

Carrying
amountFair value

Unrealized
gains

Net unrealized gains (losses)

Carrying
amountUnrealized
lossesFair value

Unrealized
gains

Unrealized
losses3,874,232

4,425,970

551,737

551,737-

4,129,033

4,548,069

419,035

419,274

-

-

-

-

-

-

-

-

-

-

Stocks of subsidiaries and affiliated companies

12,607

12,607---

15,00015,000---Available-for-sale securities

1,583

Policy reserve matching bonds

238

976,372

1,103,708

127,335

128,555

1,219

1,027,793

1,143,786

115,993

117,576

JGBs, other bonds

925,308

1,036,956

111,648

111,648-974,981

1,072,448

97,467

97,886

419

Japanese stocks

14,76520,998

6,233

6,281

47

16,25225,001

8,748

8,941

192

Foreign securities

15,40320,083

4,679

4,679

-

17,272

21,296

4,023

4,094

70

14,454

18,681

4,226

4,226

-

16,313

19,726

3,412

3,483

70

Stocks, etc.

948

1,401

452

452

-

958

1,569

610

611

0

Other securities

20,89525,669

4,774

5,946

1,171

19,28625,039

5,753

6,654

900

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

4,863,212

5,542,285

679,073

680,292

1,219

5,171,826

5,706,855

535,029

536,850

1,821

JGBs, other bonds

4,756,200

5,410,686

654,486

654,486-

5,054,115

5,559,286

505,171505,590419p
Japanesestocks24,872

31,106

6,233

6,281

47

27,25236,001

8,748

8,941

192

Foreign securities

Bonds

Total

61,24474,823

13,578

13,578-71,172

86,52815,355

15,665309

Bonds

57,79570,922

13,126

13,126-

66,21380,95814,744

15,053309

Stocks, etc

3,448

3,901

452

452

-

4,958

5,569

610

611

0

Other securities

20,89525,669

4,774

5,946

1,171

19,28625,039

5,753

6,654

900

Monetary claims purchased

-

-

-

-

-

-

-

-

-

-

Certificates of deposit

-

-

-

-

-

-

-

-

-

-

Others

-

-

-

-

-

-

-

-

-

-

8

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

As of March 31, 2013
Category

Monetary trusts

Net unrealized gains (losses)

Balance
Fair value
sheet amount
306,122

As of September 30, 2013

306,122

Unrealized Unrealized
gains
losses-Balance sheet
Fair value
amount302,532

302,532

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, 2013
Category

As of September 30, 2013

Net valuation gains (losses)
recorded in income

Balance sheet amount-

Monetary trusts for investment

Net valuation gains (losses)
recorded in income

Balance sheet amount

-

-

-

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

Monetary trusts for held-to-maturity and policy reserve matching and other monetary trusts
As of March 31, 2013

(Millions of yen)

As of September 30, 2013

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

-

-

-

-

-

-

-

-

-

-

267,865

306,071

38,20638,206-

267,904

302,481

34,577

34,577-

Other monetary trusts

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

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

As of March 31, 2013

As of September 30, 2013

AmountAmountAssets:Cash and deposits
Call loans
Monetary trusts
Securities(Japanese government bonds)(Japanese municipal bonds)(Japanese corporate bonds)(Japanese stocks)(Foreign securities)
Loans
Policy loans
Commercial loans
Tangible fixed assets
Intangible fixed assets
Due from reinsurers
Other assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

27,37397,088306,122
5,211,535
4,669,003
10,20841,092
61,884275,439
145,104
145,01985
70,96926,102
100
54,865
13,724(235)
5,952,750

4,967,304
9,432
40,286
71,962299,763
149,813
149,753
60
67,98924,62994
57,062
15,762(242)
6,247,480

Liabilities:
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends
Due to agencies
Due to reinsurers
OtherOte liabilities
ab t es

5,501,850
24,646
5,472,930
4,273
2,431
547
49,8449,8

5,795,726
24,702
5,766,877
4,147
1,671
485
47,456
7, 56

15,586243
656
33,357
22,770171
32,26432,264536
5,610,417

7,946
232
647
38,62924,06757
36,342
36,342536
5,906,345

70,0005,865
5,865
187,698
15,478172,219
172,219
263,563
80,283(1,513)78,769342,333
5,952,750

70,0005,865
5,865
194,198
17,718
176,479
176,479
270,063
72,585(1,513)71,072
341,135
6,247,480

Accrued income tax
Lease obligations
Asset retirement obligations
OthersReserve 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 for the period
Total shareholders' equity
Net unrealized gains on other securities, net of taxes
Land revaluation, net of taxes
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

10

41,436
23,677
302,532
5,564,725

5. Non-consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2012

For the six months ended
September 30, 2013

AmountOrdinary Revenues
Income from insurance premiums(Insurance premiums)
Investment income(Interest income and dividends)(Income from monetary trusts, net)
(Gains on sale of securities)(Gains on derivatives, net)
(Gains on separate accounts, net)
Other ordinary income
Ordinary Expenses
Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Refund to policyholders)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest on policyholders' dividend reserve
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
O di
P fit
Ordinary
ProfitExtraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
Provision for reserve for price fluctuations
OthersProvision (reversal) for reserve for policyholders' dividends
Income Before Income Taxes
Income Taxes -current
Income Taxes -deferred
Total Income Taxes
Net Income

11

Amount488,960
428,846428,237
56,00552,199
2,622
1,169
4,108
457,575
135,344
34,7584,430
16,897
77,1701,145
242,037
242,0316
18,75222201
327
13,53853,6487,793
31 384
31,384

549,531437,980
437,632
107,686
58,9712,674
1
172
45,862
3,863
518,229
155,054
37,6095,106
19,37890,4101,616
294,006
55
293,946
4
4,085
24
55,8729,210
31 30231,302

3,381
14
81
3,285
3,285
(28)
28,03011,592(1,964)
9,627
18,402

4,118
19
0
4,078
4,078
19
62
27,120
8,053
1,367
9,421
17,699

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

For the six months ended
September 30, 2012
Core profit

A

Capital gains
Income from monetary trusts, net

For the six months ended
September 30, 201333,30933,586

1,169

215

-

-

-

-

Gains on sale of securities

1,169

1

Gains on derivatives, net-

172

Foreign exchange gains, net--

Other capital gains

-

41

1,008

285

-

-

Income from trading securities, net

Capital losses
Losses on monetary trusts, net--

Losses on sale of securities

201-

Devaluation losses on securities

Losses on trading securities, net

327-

Losses on derivatives, net--

Foreign exchange losses, net

444

91

34

193

Net capital gains (losses)

Other capital losses
B

161

(69)

Core profit plus net capital gains (losses)

A+B

33,47033,516--

Gains from reinsurance--

Reversal of contingency reserve--

Reversal of specific reserve for possible loan losses--

Other one-time gains

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

-

-

2,086

2,214

-

-

1,965

2,103

Provision for specific reserve for possible loan losses

1

6Provision for reserve for loan losses from borrowers in specific foreign countries--

Write-off of loans--

OthersNet other one-time gains (losses)
Ordinary profit

119

104

C

(2,089)(2,214)

A+B+C

31,38431,302

Notes:
1. Core profit for the six months ended September 30, 2012 (A) includes income gains of ¥2,622 million in income from monetary trusts; other capital losses include
impairment losses of ¥34 million from investment partnership; "Others" of other one-time losses included provision of additional policy reserve of ¥119 million.
2.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.

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

As of March 31, 2013

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

As of September 30, 2013[-]
147,608
147,608[-]
161,649
161,649

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 applicable13

9. Solvency Margin Ratio(Millions of yen)

Category
Total solvency margin

As of March 31, 2013

(A)

As of September 30, 2013

872,502916,858

Common stock, etc.

252,363

269,073

Reserve for price fluctuations

32,26436,342

Contingency reserve

59,561

61,6640

0

Net unrealized gains on other securities multiplied by 90% (100% if losses)

114,602104,394

Net unrealized gains on real estate multiplied by 85% (100% if losses)(2,012)(1,386)

464

1,326

-

-

Deferred tax assets

70,60478,035

Excess amount of policy reserves based on Zillmer method

372,561

387,830--(27,907)(19,422)-(1,000)76,472

78,868General reserve for possible loan losses

Unallocated portion of reserve for policyholders' dividends
Amount excluded from deferred tax assets

Subordinated debt
The portion of the excess amount if policy reserves based on Zillmer method andsubordinated debt that is not included in the margin
Deductible items
Total risk

(R1  R8 ) 2  (R2  R3  R7 ) 2  R4

(Ｂ)

Insurance risk

R1

21,871

22,172

Third-sector insurance risk

R8

8,307

8,374

Assumed interest rate risk

R2

29,05429,362

Asset management risk

R327,592

28,919Minimum guarantee risk

R711,474

12,231Business management risk

R4

1,966

2,021

2,281.8%

2,325.0%

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

14

(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, 2013

Total solvency margin

As of September 30, 2013

855,444897,501

Common stock, etc.

247,803

263,512Reserve for price fluctuations

32,26436,342

Contingency reserve

59,561

61,664

Catastrophe reserve--

General reserve for possible loan losses

00114,602104,394(2,012)(1,386)

464

1,326

-

-

Deferred tax assets

70,60478,035

Excess amount of policy reserves based on Zillmer method

372,561

387,830--

The portion of the excess amount if policy reserves based on Zillmer
method and subordinated debt that is not included in the margin((32,467))((24,983))

Deductible items(7,938)(9,234)73,07175,134(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)Unallocated portion of reserve for policyholders' dividends
Amount excluded from deferred tax assets

Subordinated debt

(B)

Total risk
Insurance risk

R1

21,871

22,172

Ordinary insurance risk

R5

-

-

Major Catastrophe risk

R6

-

-

8,307

8,374

-

-

29,05429,362

11,474

12,231

Third-sector insurance risk

R8

Insurance risk of small-amount short-term insurance providers
Assumed interest rate risk
Minimum guarantee risk

R9

R2
R7

Asset management risk

R323,93424,919Business management risk

R4

1,892

1,941

x 100

2,341.3%

2,389.0%

Solvency margin ratio(A)(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.

15

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

Category

As of March 31, 2013

Individual variable life insurance and individual variable annuities

As of September 30, 2013
550,624

Group annuities

601,571-

Total separate account-550,624

601,571

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, 2013

Category

NumberAs of September 30, 2013

AmountNumberAmountVariable life insurance (whole life type)577

7,113,036

590

7,170,389

Variable life insurance (limited term type)43

146,77844

151,685

Variable life insurance (term type)1

46,8101

47,047622

7,306,626

636

7,369,122

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

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

As of March 31, 2013

Category

NumberIndividual variable annuities

As of September 30, 2013

Amount27

146,759

NumberAmount28

148,942

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

16

(Reference) Holdings of Securitized Papers and Other Sub-prime Related Investments
Sony Life’s holdings of securitized papers and other sub-prime related investments as of September 30, 2013, are as follows. Sony Lifeholds no sub-prime related investments.

(1) Special-purpose entities (SPEs)
Fair value

－
－
－
－
－
－
－

Special purpose entities (SPEs)
ABCP
facilitated by Sony Life
SIV
facilitated by Sony Life
Other
facilitated by Sony Life

Unrealized
gains (losses)
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

(2) Collateralized debt obligations (CDO)
Fair value

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

Collateralized debt obligations (CDO)
ABS
CDO
Seniorsub-prime (Alt-A exposure)
Mezzanine
sub-prime (Alt-A exposure)
Equitysub-prime (Alt-A exposure)
CLO

SeniorMezzanine
EquityCBO

SeniorMezzanine
EquityOther

SeniorMezzanine
Equity(3) Other sub-prime (Alt-A exposure)
Fair value

－
－
－
－
－
－

Other sub-prime (Alt-A exposure)Non-securitized loans
RMBS
Derivatives
Commitment line
Other
17

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(4) Commercial mortgage-backed securities (CMBS)
Fair value
As of March 31, 2013

Commercial mortgage-backed securities (CMBS)
Japan
USA
EU
UK
Other

－
－
－
－
－
－

－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

Unrealized
gains (losses)
－
－
－
－
－
－

(100 millions of yen)
Gains (losses)
recorded in income
－
－
－
－
－
－

(5) Leveraged financeFair value
As of March 31, 2013

Leveraged financeCommunications
Electronics
Entertainment
Services
Other

－
－
－
－
－
－

－
－
－
－
－
－

(6) Other notes
Sony Life holds principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair market value of ¥55.1 billion andunrealized gains of ¥11.5 billion as of September 30, 2013). These amounts are included in "Net unrealized gains (losses)” of Sony Life’s“Fair Value Information on Securities” as of September 30, 2013.

18