Sony Financial : FY17.2Q (6M) Consolidated Financial Results (Japanese GAAP) (PDF 907KB)

November 13, 2017 at 12:14 am

Consolidated Financial Summary (Japanese GAAP) for the Six Months Ended September 30, 2017

Company name: Sony Financial Holdings Inc.

(URL: http://www.sonyfh.co.jp/index_en.html) Stock exchange listing: Tokyo Stock Exchange (code number: 8729) Representative: Shigeru Ishii, President and Representative Director

Inquiries: Yasuo Hasegawa, General Manager - Investor Relations Dept.

November 13, 2017

(Fractional amounts of less than ¥1 million are discarded.)

Consolidated financial results for the six months ended September 30, 2017

Operating results

Ordinary Revenues

Ordinary Profit

Profit Attributable to Owners of the Parent

Millions of yen % change

708,324 12.1

631,923 (4.6)

Millions of yen % change

32,669 (12.0)

37,116 28.7

Millions of yen % change

21,596 (14.0)

25,119 31.2

For the six months ended September 30, 2017

For the six months ended September 30, 2016

Note: Comprehensive Income: For the six months ended September 30, 2017:	¥	24,737 million:	30.8%
For the six months ended September 30, 2016:	¥	18,910 million:	14.7%

For the six months ended

Net Income per Share

(Fully Diluted)

Yen Yen

September 30, 2017 49.6549.65

For the six months ended

September 30, 2016 57.7557.75

) Financial conditions
Total Assets Total Net Assets Net Asset Ratio
Millions of yen Millions of yen %
As of September 30, 2017 11,979,281 597,900 5.0
As of March 31, 2017 11,471,845 601,139 5.2
Notes: Net Assets Attributable to Shareholders: As of September 30, 2017: ¥ 596,297 million
As of March 31, 2017: ¥ 599,630 million

Dividends

Dividend per Share

Record date 1st quarter 2nd quarter 3rd quarter Year-end Annual Total

For the year ended

Yen

－

Yen

0.00

Yen

－

Yen

55.00

Yen

55.00

－

0.00

－

55.00

March 31, 2017

For the year ending

March 31, 2018

For the year ending March 31, 2018 (forecast)

Note: Changes in dividend forecast since the most recent public announcement: None

Forecast of consolidated financial results for the year ending March 31, 2018

(Percentage figures represent changes from the results of the previous fiscal year.)

Ordinary Revenues

Ordinary Profit

Profit Attributable to Owners of the Parent

Net Income per Share

Millions of yen % change

1,430,000 3.5

Millions of yen % change

67,000 1.0

Millions of yen % change

42,000 0.9

Yen

96.56

For the year ending March 31, 2018

Note: Changes in forecast of financial results since the most recent public announcement: None

Notes
Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of consolidation): None
Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial Statements
Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatements of the Consolidated Financial Statements: None
Number of shares outstanding (common stock)
Number of shares outstanding (including treasury shares)
As of September 30, 2017: 435,027,513 shares
As of March 31, 2017: 435,000,000 shares
Number of treasury shares
As of September 30, 2017: 35,775 shares
As of March 31, 2017: 52,975 shares
Weighted-average number of shares
For the six months ended September 30, 2017: 434,967,663 shares For the six months ended September 30, 2016: 434,999,925 shares
Note on interim audit procedures
This document is exempt from interim audit procedures.
Content of Supplemental Materials
Ⅰ. Consolidated Financial Statements
1. Consolidated Balance Sheets …………………………………………………………………………… 2
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
(Consolidated Statements of Income) …………………………………………………………………… 4 (Consolidated Statements of Comprehensive Income) ………………………………………………… 7
Consolidated Statements of Changes in Net Assets …………………………………………………… 8 4. Note on going concern…………………………………………………………………………………… 11

Material changes in stockholders' equity……………………………………………………………… 11
Changes in significant subsidiaries during the period…….…………………………………………… 11 7. Changes in accounting policies………………………………………………………………………… 11 8. Segment Information …………………………………………………………………………………… 12 9. Subsequent Events ……………………………………………………………………………………… 14

Ⅱ. Attachment

Consolidated Financial Results for the Six Months Ended September 30, 2017 and Sony Life's Market Consistent Embedded Value as of September 30, 2017 ………………………………………………… 16

The conference call for explaining the Sony Financial Group's financial results will be held at 15:00 (Tokyo), November 13, 2017. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on November 13, 2017 after 14:00, the translation of the conference call (audio) on November 14 and the Q&A summary (text) at a later date on the Earnings Releases and Presentation Materials page on our website: http://www.sonyfh.co.jp/en/financial_info/results/index.html
On November 13, 2017, Sony Financial Holdings Inc.'s (SFH's) significant subsidiaries─Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)─will announce their financial results for the six months ended September 30, 2017. SFH has prepared an English-language summary of those Japanese announcements made by the above subsidiaries, solely for convenience of non- Japanese readers.

Ⅰ. Consolidated Financial Statements‌

Consolidated Balance Sheets

(Millions of yen)

As of March 31, 2017			As of September 30, 2017
Assets	¥	206,481	¥	274,693
Cash and due from banks	¥	206,481	¥	274,693
Call loans and bills bought	61,900	76,900
Monetary claims purchased	573	7,506
Money held in trust	296,877	292,940
Securities	8,857,436	9,244,711
Loans	1,720,004	1,743,902
Tangible fixed assets	123,614	130,344
Intangible fixed assets	30,776	31,109
Due from agencies	0	－
Due from reinsurers	1,438	832
Foreign exchanges	7,268	10,446
Other assets	148,650	148,745
Net defined benefit asset	2,752	2,863
Deferred tax assets	15,313	15,500
Reserve for possible loan losses	(1,243)	(1,215)
Total Assets	¥	11,471,845	¥	11,979,281

(Millions of yen)

As of March 31, 2017	As of September 30, 2017
Liabilities Policy reserves and others Reserve for outstanding claims Policy reserves Reserve for policyholders' dividends Due to agencies Due to reinsurers Deposits Call money and bills sold Borrowed money Foreign exchanges Bonds payable Other liabilities Reserve for employees' bonuses Net defined benefit liability Reserve for directors' retirement benefits Special reserves Reserve for price fluctuations Deferred tax liabilities	¥ 8,113,153 71,306 8,036,118 5,729 2,616 3,737 2,071,091 70,000 90,000 108 10,000 427,866 3,694 31,399 366 46,182 46,182 － 488	¥ 8,438,180 73,457 8,358,960 5,762 1,430 4,364 2,121,161 117,000 153,851 336 10,000 451,651 3,430 32,326 － 47,101 47,101 58 488
Deferred tax liabilities on land revaluation Total Liabilities Net Assets Common stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Net unrealized gains (losses) on other securities, net of taxes Net deferred gains (losses) on hedging instruments, net of taxes Land revaluation, net of taxes Remeasurements of defined benefit plans, net of taxes Total accumulated other comprehensive income Subscription rights to shares Non-controlling interests Total Net Assets Total Liabilities and Net Assets
	10,870,705	11,381,381
	19,900 195,277 255,062 (81) 470,157 134,849 (1,154) (1,465) (2,756)	19,927 191,157 252,638 (55) 463,668 137,551 (1,027) (1,465) (2,430) 132,628
	129,472
	49	61
	1,460	1,541
	601,139	597,900
	¥ 11,471,845	¥ 11,979,281

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)‌

563,030 476,763 475,923 840 80,226 72,040 2,248 56 1,301 － 4,577 － 1 － 6,039	630,822 479,629 478,596 1,033 144,945 77,991 2,246 22 0 1 － 2,078 0 62,604 6,247
50,270	54,798
48,967	53,817
48,933	53,786
33	30
1,277	956
661	667
649	320
0	－
(33)	(30)
25	24
18,516	19,714
12,757	14,005
7,785	8,457
4,937	5,510
32	31
0	－
0	5
3,404	3,033
2,225	2,104
130	570
105	2,988
105	2,988

(Millions of yen)

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Ordinary Revenues

Ordinary Revenues from the Life Insurance Business Income from insurance premiums

Insurance premiums

Ceded reinsurance commissions Investment income

Interest income and dividends Income from monetary trusts, net Gains on 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

Ordinary Revenues from the Non-life Insurance Business Underwriting income

Net premiums written

Interest and dividends on deposits of premiums Investment income

Interest income and dividends Gains on sale of securities

Gains on redemption of securities

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

Ordinary Revenues from the Banking Business Interest income

Interest income on loans

Interest income and dividends on securities Interest income on deposits with banks Interest income on interest rate swaps Others interest income

Fees and commissions Other operating income Other ordinary income

Other

Other ordinary income

631,923

708,324

(Continued)

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Ordinary Expenses

Ordinary Expenses from the Life Insurance Business Insurance claims and other payments

Insurance claims Annuity payments Insurance benefits Surrender payments Other payments Reinsurance premiums

Provision for policy reserves and others Provision for reserve for outstanding claims Provision for policy reserves

Interest portion of reserve for policyholders' dividends Investment expenses

Interest expenses

Losses on sale of securities

Losses on redemption of securities Losses on derivatives, net

Foreign exchange losses, net

Provision for reserve for possible loan losses Depreciation of real estate for rent and others Other investment expenses

Losses on separate accounts, net Operating expenses

Other ordinary expenses

Ordinary Expenses from the Non-life Insurance Business Underwriting expenses

Net losses paid

Loss adjustment expenses

Net commission and brokerage fees Provision for reserve for outstanding losses Provision for underwriting reserves

Investment expenses

Other investment expenses

Operating, general and administrative expenses Other ordinary expenses

594,807

675,654

531,994 163,350 42,443 5,617 27,837 83,139 1,607 2,705 244,117 － 244,117 0 40,478 15 － 23 － 5,023 2 896 2,381 32,134 69,838 14,209	607,188 187,384 45,157 5,618 40,400 90,159 1,673 4,375 317,735 1,104 316,630 0 18,039 35 0 2 14,739 － 5 876 2,380 － 67,941 16,086
46,565	49,843
34,424	36,538
24,046	24,937
3,683	3,672
572	669
1,603	1,046
4,517	6,211
2	1
2	1
12,136	13,302
2	1

(Continued)

For the six months ended September 30, 2016		For the six months ended September 30, 2017
Ordinary Expenses from the Banking Business Interest expenses Interest expenses on deposits Interest expenses on call money and bills sold Interest expenses on borrowed money Interest expenses on bonds Interest expenses on interest rate swaps Others interest expenses Fees and commissions Other operating expenses General and administrative expenses	¥	15,789 4,277 2,518 － 16 48 1,693 0 1,687 78 9,602 142	¥	15,002 3,884 2,582 (35) 0 21 1,310 5 2,199 49 8,822 47
Other ordinary expenses
Other	457 457		3,620 3,620
Other ordinary expenses Ordinary Profit Extraordinary Losses Losses on disposal of fixed assets Impairment losses Provision for special reserves Provision for reserve for price fluctuations Others Provision for Reserve for Policyholders' Dividends Income Before Income Taxes Income Taxes - Current Income Taxes - Deferred Total Income Taxes Profit Profit (Loss) Attributable to Non-controlling Interests Profit Attributable to Owners of the Parent
	37,116		32,669
	911 110 0 793 793 7		1,039 85 0 919 919 34 297
	682
	35,522		31,332
	12,237 (1,869)		11,105 (1,353) 9,752
	10,368
	25,153		21,579
	33		(16)
	¥	25,119	¥	21,596

(Consolidated Statements of Comprehensive Income)

(Millions of yen)

For the six months ended September 30, 2016		For the six months ended September 30, 2017
Profit	¥	25,153	¥	21,579
Other comprehensive income
Net unrealized gains (losses) on other securities, net of taxes	(6,658)	2,702
Net deferred gains (losses) on hedging instruments, net of taxes	33	127
Remeasurements of defined benefit plans, net of taxes Total other comprehensive income Comprehensive income (Details) Comprehensive income attributable to owners of the parent Comprehensive income attributable to non-controlling interests	381	327
	(6,243)		3,157
	¥	18,910	¥	24,737
	18,874		24,752
	35		(15)

Consolidated Statements of Changes in Net Assets

For the six months ended September 30, 2016

－	－	105	－	105
19,900	195,277	238,185	(0)	453,362

－	－	(23,924)	－	(23,924)
－	－	25,119	－	25,119
－	－	(818)	－	(818)
－	－	－	－	－
－	－	376	－	376
¥ 19,900	¥ 195,277	¥ 238,561	¥ (0)	¥ 453,738

(Millions of yen)

Shareholders' Equity

Common stock

Capital surplus

Retained earnings

Treasury sto

Total shareholders' equity

Balance at the beginning of the period

Cumulative effects of changes in accounting policies

Restated balance at the beginning of the period

Changes during the period

Dividends from surplus

Profit attributable to owners of the parent Adjustments due to change of scope of consolidation

Net changes of items other than shareholders' equity

Total changes during the period

Balance at the end of the period

¥ 19,900

¥ 195,277

¥ 238,079

(0)

¥ 453,256

Total accumulated other comprehensive income

Subscription rights to shares

Non-controlling interests

Total net assets

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

Net deferred gains (losses) on hedging instruments,

net of taxes

Land revaluation, net of taxes

Remeasurements of defined benefit plans, net of taxes

Total accumulated other comprehensive income

Balance at the beginning

of the period ¥ 157,364 ¥ (2,347) ¥ (1,465) ¥ (3,760) ¥ 149,791 ¥ － ¥ 1,329 ¥ 604,377

－	－	－	－	－	－	－	105
157,364	(2,347)	(1,465)	(3,760)	149,791	－	1,329	604,482

Cumulative effects of changes in accounting policies

Restated balance at the beginning of the period

－	－	－	－	－	－	－	(23,924)
－	－	－	－	－	－	－	25,119
－	－	－	－	－	－	－	(818)
(6,658)	33	－	379	(6,245)	16	35	(6,193)
(6,658)	33	－	379	(6,245)	16	35	(5,817)
¥ 150,706	¥	(2,314)	¥	(1,465)	¥	(3,380)	¥ 143,546	¥	16	¥	1,364	¥ 598,665

Changes during the period

Dividends from surplus

Profit attributable to owners of the parent Adjustments due to change of scope of consolidation

Net changes of items other than shareholders' equity

Total changes during the period

Balance at the end of the period

For the six months ended September 30, 2017


27	27	－	－	55
－	－	(23,922)	－	(23,922)
－	－	21,596	－	21,596
－	(5)	－	26	21
－	5	(5)	－	－
－	－	(92)	－	(92)
－	(4,147)	－	－	(4,147)
－	－	－	－	－
27	(4,119)	(2,423)	26	(6,488)
¥ 19,927	¥ 191,157	¥ 252,638	¥ (55)	¥ 463,668

Shareholders' Equity

Common stock

Capital surplus

Retained earnings

Treasury st

ock

Total shareholders' equity

Balance at the beginning of the period

Changes during the period Issuance of new shares Dividends from surplus

Profit attributable to

owners of the parent Disposal of treasury shares

Transfer of loss on disposal of treasury shares

Adjustments due to change of scope of consolidation

Change in ownership interest of parent due to transactions with non- controlling interests

Net changes of items other than shareholders' equity

Total changes during the period

Balance at the end of the period

¥19,900

¥ 195,277

¥ 255,062

(81)

¥ 470,157

(Millions of yen)

(Continued)

Total accumulated other comprehensive income

Subscription rights to shares

Non-controlling interests

Total net assets

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

Net deferred gains (losses) on hedging instruments,

net of taxes

Land revaluation, net of taxes

Remeasurements of defined benefit plans, net of taxes

Total accumulated other comprehensive income

Balance at the beginning of

the period ¥ 134,849 ¥ (1,154) ¥ (1,465) ¥ (2,756) ¥ 129,472 ¥ 49 ¥ 1,460 ¥ 601,139

－

(23,922)

－

21,596

－

(92)

－

(4,147)

2,702

127

－

325

3,156

3,249

2,702

127

－

325

3,156

(3,238)

¥ 137,551

(1,027)

(1,465)

(2,430)

¥ 132,628

1,541

¥ 597,900

Changes during the period Issuance of new shares Dividends from surplus

Profit attributable to

owners of the parent Disposal of treasury shares

Transfer of loss on disposal of treasury shares

Adjustments due to change of scope of consolidation

Change in ownership interest of parent due to transactions with non- controlling interests

Net changes of items other than shareholders' equity

Total changes during the period

Balance at the end of the period

Note on going concern‌‌‌
Not applicable.
Material changes in stockholders' equity
Not applicable.
Changes in significant subsidiaries during the period
Not applicable.
Although not a specified subsidiary, nursing-care provider Proud Life Inc., which was a non-consolidated subsidiary in the previous consolidated fiscal year, has been included in the scope of consolidation, due to a rise in its importance from the first half of the fiscal year ending March 31, 2018. The company's results are included in the "other" category in the consolidated statements of income.
Changes in accounting policies
Not applicable.
Segment Information
Outline of reporting segments
The Sony Financial Group consists of three reporting segments: the life insurance business, the non-life insurance business and the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd., and SA Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc. and SmartLink Network Hong Kong Limited.

) Segment Information by reporting segment For the six months ended September 30, 2016

Life insurance business

¥	563,030	¥	50,270	¥	18,516	¥	631,817	¥	105	¥	631,923
1,508	0	97	1,606	－	1,606
564,538	50,270	18,614	633,424	105	633,530
32,235	3,372	1,788	37,396	(366)	37,030
8,362,193	177,920	2,202,085	10,742,199	3,768	10,745,967

3,617	1,539	1,292	6,449	20	6,469
72,299	661	12,756	85,717	0	85,717
15	－	4,345	4,361	18	4,380
(1,099)	－	－	(1,099)	－	(1,099)
11,114	－	－	11,114	－	11,114
¥	5,351	¥	2,707	¥	1,383	¥	9,442	¥	10	¥	9,453

Ordinary revenues External customers Intersegment

Total Segment profit Segment assets Others

Depreciation

Interest income and dividends Interest expenses

Equity in earnings (losses) of affiliates

Investments in affiliates Increase in tangible fixed assets and intangible fixed assets

Non-life insurance business

Millions of yen Banking

business Total other Total

For the six months ended September 30, 2017

Life insurance business

¥	630,822	¥	54,798	¥	19,714	¥	705,335	¥	2,988	¥	708,324
1,609	0	104	1,715	－	1,715
632,432	54,798	19,819	707,050	2,988	710,039
24,925	4,587	3,712	33,225	(631)	32,593
9,207,448	194,312	2,592,552	11,994,313	14,370	12,008,683

3,567	2,033	1,236	6,838	307	7,146
78,249	667	14,005	92,921	0	92,921
35	－	3,923	3,958	275	4,233
(1,221)	－	－	(1,221)	－	(1,221)
9,838	－	－	9,838	－	9,838
¥	2,737	¥	1,067	¥	1,843	¥	5,647	¥	77	¥	5,725

Ordinary revenues External customers Intersegment

Total Segment profit Segment assets Others

Depreciation

Interest income and dividends Interest expenses

Equity in earnings (losses) of affiliates

Investments in affiliates

Non-life insurance business

Millions of yen Banking

business Total other Total

Increase in tangible fixed assets and intangible fixed assets

Reconciliations of the totals of each segment item to corresponding enterprise amounts

Millions of yen

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Totals of reporting segments	¥	633,424	¥	707,050
Other	105	2,988
Adjustments for intersegment transactions	(1,606)	(1,715)
Ordinary revenues in statement of income	¥	631,923	¥	708,324

Millions of yen

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Totals of reporting segments ¥ 37,396 ¥ 33,225 Other (366) (631)

Adjustments for intersegment transactions 4 1

Amount not allocated to reporting segments 81 74

Ordinary profit in statement of income ¥ 37,116 ¥ 32,669

Millions of yen

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Totals of reporting segments ¥ 10,742,199 ¥ 11,994,313 Other 3,768 14,370

Adjustments for intersegment transactions (31,284) (56,437)

Amount not allocated to reporting segments 29,982 27,035 Assets in balance sheets ¥ 10,744,665 ¥ 11,979,281

Millions of yen

For the six months ended September 30, 2016

For the six months ended September 30, 2017

Total Other Adjustments

Consolidated financial statements

Total Other Adjustments

Consolidated financial statements

Depreciation ¥ 6,449 ¥ 20 ¥ 9 ¥ 6,478 ¥ 6,838 ¥ 307 ¥ 18 ¥ 7,164 Interest income and

dividends

85,717 0 (257) 85,459 92,921 0 (257) 92,663

Interest expenses 4,361 18 (68) 4,312 3,958 275 (38) 4,194 Equity in earnings

(losses) of affiliates

(1,099) －－ (1,099) (1,221) －－ (1,221)

Investments in affiliates 11,114 －－ 11,114 9,838 －－ 9,838 Increase in tangible

fixed assets and intangible fixed assets

¥ 9,442 ¥ 10 ¥ 267 ¥ 9,721 ¥ 5,647 ¥ 77 ¥ 1 ¥ 5,727

Subsequent Events

Issuance of Straight Bonds

October 31, 2017-The Board of Directors' passed a comprehensive resolution to issue straight bonds as follows.

Type Unsecured straight bonds Total amount of issue 10 billion yen

Issuance period November 1, 2017 - March 31, 2018

Issue price 100 yen or more per each 100 yen of face value

Interest rate 0.5% or less per annum Redemption date and

method

No later than 5 years, lump-sum repayment at maturity

Use of funds Sony Financial Holdings will use the funds for the redemption of the No. 2 Straight Bonds

Decisions on the specific timing of issuance, total amount of issue, interest rate and other matters provided for in the items of Article 676 of the Companies Act and all other matters

Others

required in connection with the said straight bond issuance shall be entrusted to the President, Representative Director of the Company within the scope of the resolution.

SFH's consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects from the financial information reported by Sony Corporation, SFH's parent company, which prepares its financial statements in accordance with U.S. GAAP.

* SFH's scope of consolidation includes following companies Consolidated subsidiaries:

Sony Financial Holdings Inc. Sony Life Insurance Co. Ltd. Sony Assurance Inc.

Sony Bank Inc.

Sony Payment Services Inc.

SmartLink Network Hong Kong Limited. Sony Lifecare Inc.

Lifecare Design Inc. Proud Life Inc.**

Affiliated companies accounted for under the equity method: AEGON Sony Life Insurance Co., Ltd.

SA Reinsurance Ltd.

** Proud Life Inc. is included in the scope of consolidation from the first half of the fiscal year ending March 31, 2018.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward- looking statements may include-but are not limited to-words such as "believe," "anticipate," "plan," "strategy," "expect," "assume," "forecast," "predict," "propose," "intend" and "possibility" that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained in this press release does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever in Japan or abroad.

──────────────────────────────────────────────────────────────────────── For inquiries:

Investor Relations Dept. Sony Financial Holdings Inc.

Telephone: +81-3-5290-6500 E-mail: press@sonyfh.co.jp

Website of Sony Financial Holdings Inc. http://www.sonyfh.co.jp/index_en.html

Ⅱ. Attachment

Content of Presentation Material

Consolidated Financial Results for the Six Months Ended September 30, 2017 and Sony Life's Market Consistent Embedded Value as of September 30, 2017

Consolidated Operating Results for the Six Months Ended September 30, 2017 ………………………… 3
Consolidated Financial Forecast for the Year Ending March 31, 2018 …………………………………… 27
Sony Life's MCEV and ESR as of September 30, 2017…………………………………………………… 29
・ Appendix …………………………………………………………………………………………………… 32
Attachment
Presentation Material Consolidated Financial Results for the Six Months Ended September 30, 2017 and Sony Lifeʼs MCEV as of September 30, 2017 Sony Financial Holdings Inc. November 13, 2017
Sony Financial Holdings Inc. All Rights Reserved
Content
- Consolidated Operating Results for the Six Months Ended September 30, 2017 P.3
- Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (FY17)
  P.27
- Sony Lifeʼs MCEV and ESR as of September 30, 2017 P.29
- Appendix P.32

Disclaimers:

This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking statements may include̶but are not limited to̶words such as "believe," "anticipate," "plan," "strategy," "expect," "assume," "forecast," "predict," "propose," "intend" and "possibility" that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained in this presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever in Japan or abroad.

*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded. Also, a "-" is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.

"Lifeplanner" is a registered trademark of Sony Life.

Attachment

Consolidated Operating Results for the Six Months Ended September 30, 2017 (FY17.1H)

Highlights of Consolidated Operating Performance (1)

(JPY bn)			FY16.1H	FY17.1H	Change
Life insurance business	Ordinary revenues	564.5	632.4	+67.8	+12.0%
Life insurance business	Ordinary profit	32.2	24.9	(7.3)	(22.7%)
Non-life insurance business	Ordinary revenues	50.2	54.7	+4.5	+9.0%
Non-life insurance business	Ordinary profit	3.3	4.5	+1.2	36.0%
Banking business	Ordinary revenues	18.6	19.8	+1.2	+6.5%
Banking business	Ordinary profit	1.7	3.7	+1.9	+107.5%
Intersegment adjustments*	Ordinary revenues	(1.5)	1.2	+2.7	-
Intersegment adjustments*	Ordinary profit	(0.2)	(0.5)	(0.2)	-
Consolidated		Ordinary revenues	631.9	708.3	+76.4	+12.1%
		Ordinary profit	37.1	32.6	(4.4)	(12.0%)
		Profit attributable to owners of the parent	25.1	21.5	(3.5)	(14.0%)

Consolidated ordinary revenues Consolidated ordinary profit

+12.1%

631.9

708.3

(12.0%)

37.1

32.6

(JPY bn) *Ordinary profit in "Intersegment adjustments" is mainly from SFH and the nursing care business.

Proud Life Inc., a company of nursing care business, has been included in the scope of

FY16.1H FY17.1H

consolidation from FY17.2Q.

(Note) Comprehensive income : FY16.1H: ¥18.9 billion, FY17.1H: ¥24.7 billion

(JPY bn)		Mar. 17	Sep. 17	Change from Mar. 17
Consolidated	Net assets	601.1	597.9	(3.2)	(0.5%)
Consolidated	Total assets	11,471.8	11,979.2	+507.4	+4.4%

Highlights of Consolidated Operating Performance (2)

Attachment

Life Insurance Business︓Ordinary revenues increased year on year due to an improvement of investment performance in the separate account following a recovery in the financial market conditions. Investment gains were recorded in this first half compared with investment losses in the same period of the previous year. Ordinary profit decreased year on year due to a deterioration in net gains/losses on derivative transactions to hedge market risks for available-for-sale securities and lower gains on sale of securities in the general account.
Non-life Insurance Business: Ordinary revenues expanded year on year owing to an increase in net premiums written for mainstay automobile insurance. Ordinary profit increased year on year due to a decline in the loss ratio, driven primarily by a lower car accident ratio.
Banking Business︓Ordinary revenues increased year on year due to an increase in interest income on loans in line with a favorably growing balance of mortgage loans, and an increase in interest income on securities. Ordinary profit increased year on year, due to a decrease in operating expenses, especially in advertising expenses for the card loan business.
Consolidated ordinary revenues increased 12.1% year on year, to ¥708.3 billion, owing to increases in ordinary revenues from all the businesses: life insurance, non-life insurance, and banking businesses. Consolidated ordinary profit decreased 12.0%, to ¥32.6 billion. By business segment, ordinary profit from the life insurance business decreased whereas ordinary profit from the non-life insurance and the banking businesses increased. Profit attributable to owners of the parent was down 14.0% year on year, to ¥21.5 billion due to the decrease in consolidated ordinary profit.

Highlights of Operating Performance: Sony Life (Non-consolidated)

(JPY bn)			FY16.1H	FY17.1H	Change
Ordinary revenues			564.4	632.3	+67.9	+12.0%
Income from insurance premiums		477.4	480.4	+3.0	+0.6%
Investment income		80.4	145.1	+64.7	+80.4%
Interest income and dividends	72.2	78.2	+5.9	+8.2%
Income from money held in trust, net	2.2	2.2	(0.0)	(0.1%)
Gains on sale of securities	1.3	0.0	(1.3)	(100.0%)
Gains on derivatives, net	4.5	-	(4.5)	(100.0%)
Gains on separate accounts, net	-	62.6	+62.6	-
Ordinary expenses			531.2	606.2	+75.0	+14.1%
Insurance claims and other payments		163.3	187.3	+24.0	+14.7%
Provision for policy reserves and others		244.1	317.7	+73.6	+30.2%
Investment expenses		40.6	18.1	(22.4)	(55.2%)
Losses on derivatives, net	-	14.7	+14.7	-
Losses on separate accounts, net	32.1	-	(32.1)	(100.0%)
Operating expenses		70.0	68.1	(1.8)	(2.7%)
Ordinary profit			33.2	26.0	(7.1)	(21.5%)
Net income			22.8	16.9	(5.8)	(25.6%)
(JPY bn)			Mar. 17	Sep. 17	Change from Mar. 17
Securities			8,093.1	8,416.3	+323.1	+4.0%
Policy reserves			7,929.9	8,246.5	+316.6	+4.0%
Net assets			473.5	469.0	(4.5)	(1.0%)
Net unrealized gains on other securities		127.7	129.3	+1.6	+1.3%
Total assets			8,873.6	9,208.3	+334.7	+3.8%
Separate account assets	989.6	1,084.1	+94.5	+9.6%

Ordinary revenues Ordinary profit

＋12.0%

564.4

632.3

(JPY bn)

33.2

(21.5%)

26.0

FY16.1H FY17.1H

Ordinary revenues increased but ordinary profit decreased year on year.
Income from insurance premiums was flat year on year due mainly to a decrease in sales of single premium whole life insurance although policy amount in force increased.
Investment income increased due to an improvement of investment performance in the separate account and higher interest income and dividends in the general account.

Ordinary profit decreased year on year due to a deterioration in net gains/losses on derivative transactions to hedge market risks for available-for-sale securities and lower gains on sale of securities in the general account.

Overview of Operating Performance: Sony Life (Non-consolidated)

Attachment

(JPY bn)		FY16.1H	FY17.1H	Change
New policy amount		2,449.0	2,230.7	(8.9%)
Lapse and surrender amount		922.5	873.4	(5.3%)
Lapse and surrender rate		2.14%	1.93%	(0.21pt)
Policy amount in force		44,114.4	46,219.1	+4.8%
Annualized premiums from new policies		38.7	32.3	(16.4%)
Of which, third-sector products	8.1	5.9	(26.0%)
Annualized premiums from insurance in force		799.6	833.5	+4.2%
Of which, third-sector products	184.0	189.6	+3.0%

＜Reasons for changes＞

Decreased due mainly to lower sales of term life insurance and family income insurance despite favorable sales of U.S. dollar- denominated insurance.
Decreased due mainly to lower sales of term life insurance and living benefit insurance despite favorable sales of U.S. dollar- denominated insurance.
Notes:
Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force, annualized premiums from new policies and annualized premiums from insurance in force are calculated as the total of individual life insurance and individual annuities.
The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders,

(JPY bn)	FY16.1H	FY17.1H	Change
Gains from investment, net (General account)	72.0	64.4	(10.5%)
Core profit	30.6	43.8	+43.1%
Positive spread	6.5	9.3	+43.1%

not adjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.

Increased significantly due mainly to a decline in the provision of policy reserves for minimum guarantees for variable life insurance led by a recovery in the financial market conditions.

Mar. 17	Sep. 17	Change from Mar. 17
Non-consolidated solvency margin ratio	2,568.8%	2,631.8%	+63.0pt

Operating Performance : Sony Life (Non-consolidated) (1)

Number and Amount of New Policies

(Individual Life Insurance + Individual Annuities)

Annualized Premiums from New Policies

(Individual Life Insurance + Individual Annuities)

New policy amount Number of new policies

Annualized premiums from new policies

Of which, third-sector

（JPY tn）

327

2.61

280

2.44

(14.4%)

(8.9%)

240

（Thousands of policies)

300

（JPY bn）

43.0

38.7

(16.4%)

32.3

2.23

200

100

7.3

8.1

(26.0%)

5.9

0 0

FY15.1H FY16.1H FY17.1H

Operating Performance : Sony Life (Non-consolidated) (2)

Attachment

Number and Amount of Policies in Force

(Individual Life Insurance + Individual Annuities)

Annualized Premiums from Insurance in Force

(Individual Life Insurance + Individual Annuities)

Policy amount in force Number of policies in force Annualized premiums from insurance in force Of which, third-sector

（JPY tn）

7.20

44.1

+4.8%

+3.0%

7.30

45.3

+1.5%

7.42

46.2

（Millions

of policies) （JPY bn）

800

600

799.6

+4.2%

820.8

+1.5%

833.5

+2.0% 6

30 4

400

200

184.0

+3.0%

187.4

+1.1%

189.6

0 0 0

Sep. 16 Mar. 17 Sep. 17

Operating Performance : Sony Life (Non-consolidated) (3)

Lapse and Surrender Rate*

(Individual Life Insurance + Individual Annuities)

（%）

Lapse and surrender rate (Annual)

Lapse and surrender rate

（1H）

4.72

2.33

4.27

2.14

(0.21pt)

1.93

FY15 FY16 FY17

*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.

Operating Performance : Sony Life (Non-consolidated) (4)

Attachment

Income from Insurance Premiums Interest Income and Dividends

(JPY bn)

500

400

508.7

477.4

＋0.6%

480.4

(JPY bn)

69.872.2

＋8.2%

78.2

300

200

100

FY15.1H FY16.1H FY17.1H

Operating Performance : Sony Life (Non-consolidated) (5)

Core Profit Ordinary Profit

(JPY bn)

43.8

(JPY bn)

14.4

+43.1%

30.6

22.8

33.2

(21.5%)

26.0

10 10

FY15.1H FY16.1H FY17.1H

(Reference) Impact on core profit
(JPY bn)	FY15.1H	FY16.1H	FY17.1H
Positive spread	7.3	6.5	9.3
Provision of policy reserves for minimum guarantees for variable life insurance (*)	(22.1)	(11.6)	(4.0)
Others	29.2	35.7	38.6

(Reference) Main differences from core profit

(JPY bn)	FY15.1H	FY16.1H	FY17.1H
Capital gains (losses) excluding gains or losses on hedges (*)	10.3	5.0	(5.6)
Gains (losses) on hedges of variable life insurance	1.4	1.0	(8.5)
Provision of contingency reserve (*)	(3.1)	(3.4)	(3.6)

*"Provision of policy reserves for minimum guarantees for variable life insurance" and "Provision of contingency reserve" are described as negative amount. Capital gains (losses) exclude gains or losses on hedges of variable life insurance.

Operating Performance : Sony Life (Non-consolidated) (6)

Attachment

Number of Lifeplanner Sales Employees

(Number)

5,000

4,6124,682

4,751 4,730

4,933 4,942

+223

＋32

4,974

4,500

4,000

3,500

3,000

Mar. 16 Jun. 16 Sep. 16 Dec. 16 Mar. 17 Jun. 17 Sep. 17

Operating Performance : Sony Life (Non-consolidated) (7)

Breakdown of General Account Assets

We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance policies with long-term maturities with the aim of reducing interest rate risk.

Mar. 16 21.8 years

Mar. 17 21.3 years

Sep. 17 21.2 years

(JPY bn)	Mar. 17		Sep. 17
(JPY bn)	Amount	%	Amount	%
Japanese bonds (including JGBs)	6,828.7	86.6%	7,031.1	86.5%
Japanese stocks	37.6	0.5%	34.1	0.4%
Foreign bonds	274.3	3.5%	308.7	3.8%
Foreign stocks	31.5	0.4%	33.2	0.4%
Money held in trust	273.8	3.5%	271.9	3.3%
Policy loans	180.3	2.3%	184.5	2.3%
Real estate*	117.5	1.5%	116.6	1.4%
Cash and call loans	40.8	0.5%	44.5	0.5%
Others	99.1	1.3%	99.0	1.2%
Total	7,884.0	100.0%	8,124.1	100.0%

Investment in the money held in trust is mainly into Japanese bonds.

The holding ratio on the real status of Japanese bonds including those invested in the money held in trust in the general account : Sep. 17・・・89.9%

（Mar. 17・・・90.1%）

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

Operating Performance : Sony Life (Non-consolidated) (8)

Attachment

Non-consolidated Solvency Margin Ratio

（%）

3,000

2,722.8

2,568.8

2,631.8

2,500

+63.0pt

2,000

1,500

1,000

Mar. 16 Mar. 17 Sep. 17

Highlights of Operating Performance: Sony Assurance

(JPY bn)		FY16.1H	FY17.1H	Change
Ordinary revenues		50.2	54.7	+4.5	+9.0%
Underwriting income	48.9	53.8	+4.8	+9.9％
Investment income	1.2	0.9	(0.3)	(25.1%)
Ordinary expenses		46.8	50.2	+3.3	+7.1％
Underwriting expenses	34.6	36.7	+2.1	+6.1％
Operating general and administrative expenses	12.2	13.4	+1.1	+9.7%
Ordinary profit		3.3	4.5	+1.2	+36.2%
Net income		2.4	3.3	+0.8	+35.5%

Ordinary revenues Ordinary profit

+9.0%

50.2

54.7

+36.2%

4.5

3.3

(JPY bn)

FY16.1H FY17.1H

(JPY bn)	Mar. 17	Sep. 17	Change from Mar. 17
Underwriting reserves	106.1	112.3	+6.2	+5.9%
Net assets	29.4	31.0	+1.6	+5.5%
Total assets	186.5	194.2	+7.7	+4.2%

◆Both ordinary revenues and ordinary profit increased year on year.

◆Ordinary revenues expanded owing to an increase in net premiums written for mainstay automobile insurance.

◆Ordinary profit increased due to a decline in the loss ratio, driven primarily by a lower car accident ratio.

Overview of Operating Performance: Sony Assurance

Attachment

(JPY bn)	FY16.1H	FY17.1H	Change
Direct premiums written	48.3	53.1	+9.9%
Net premiums written	48.9	53.7	+9.9%
Net losses paid	24.0	24.9	+3.7%
Underwriting profit	2.0	3.6	+73.2%
Net loss ratio	56.7%	53.2%	(3.5pt)
Net expense ratio	26.6%	26.6%	+0.0pt
Combined ratio	83.3%	79.8%	(3.5pt)

Increased in its mainstay automobile insurance.

Notes:

FY16.1H	FY17.1H	Change
E. I. loss ratio	63.3%	59.6%	(3.7pt)
E. I. loss ratio + Net expense ratio	89.9%	86.2%	(3.7pt)

Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written Net expense ratio = Expenses related to underwriting / Net premiums written

Remained flat due to an increase in net premiums written, in addition to a proper control on overall operating expenses.
Declined due to a lower car accident ratio in automobile insurance.

Notes:

loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums [Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]

Mar. 17	Sep. 17	Change from Mar. 17
Number of policies in force	1.89 mn	2.01 mn	+0.12 mn	+6.6%
Non-consolidated solvency margin ratio	730.8%	784.1%	+53.3pt

Sony Assuranceʼs Underwriting Performance by Type of Policy

(JPY ｍn)	FY16.1H	FY17.1H	Change
Fire	117	102	(12.1%)
Marine	－	－	－
Personal accident	4,388	4,348	(0.9%)
Voluntary automobile	43,814	48,664	+11.1%
Compulsory automobile liability	－	－	－
Total	48,319	53,116	+9.9%

(JPY ｍn)	FY16.1H	FY17.1H	Change
Fire	12	8	(37.5%)
Marine	(2)	(0)	－
Personal accident	4,527	4,452	(1.6%)
Voluntary automobile	43,686	48,545	+11.1%
Compulsory automobile liability	709	780	+10.0%
Total	48,934	53,786	+9.9%

Direct Premiums Written Net Premiums Written

(JPY ｍn)	FY16.1H	FY17.1H	Change
Fire	4	2	(45.3%)
Marine	(11)	3	－
Personal accident	1,228	1,361	+10.8%
Voluntary automobile	22,175	22,915	+3.3%
Compulsory automobile liability	649	655	+0.9%
Total	24,046	24,937	+3.7%

Net losses paid

*Medical insurance is included in personal accident.

Operating Performance: Sony Assurance (1)

Attachment

Net Premiums Written and Number of Policies in Force

Ordinary Profit and Adjusted Ordinary Profit

Voluntary automobile insurance

Personal accident insurance

Ordinary profit Adjusted ordinary profit

Others

(JPY bn)

Number of policies in force

+10.9%

1.82

1.75

2.01

53.7

(mn of policies)

0.7

(JPY bn)

4.2

4.9

+27.8%

4.5

6.2

47.5

48.9

+9.9%

4.4

48.5

1.5

2.7

3.3

+36.2%

0.5

FY15.1H FY16.1H FY17.1H

0 0

FY15.1H FY16.1H FY17.1H

The number of policies in force is the total of automobile insurance and medical insurance policies.

Most of personal accident insurance is medical insurance.

(Reference) Provision for catastrophe reserve
(JPY bn)	FY15.1H	FY16.1H	FY17.1H
Provision for catastrophe reserve	1.5	1.5	1.7

*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

*Provision for catastrophe reserve is described as positive amount.

Operating Performance: Sony Assurance (2)

Earned/Incurred Loss Ratio + Net Expense Ratio

(Reference) Combined Ratio

(Net Loss Ratio+ Net Expense Ratio)

Earned/Incurred loss ratio

Net expense ratio

Net loss ratio

Net expense ratio

（%）（%）

100

90.4

90.6

89.1

89.9

(3.7pt)

86.2

100

84.8

85.8

82.7

83.3

(3.5pt)

79.8

63.3 62.3

62.463.3

(3.7pt)

59.6

57.8 57.5

55.9 56.7

(3.5pt)

53.2

40 40

20 27.1 28.3

+0.0pt

26.7 26.6 26.6

20 27.128.3

+0.0pt

26.7 26.6 26.6

Notes:

FY15 FY16 FY15.1H FY16.1H FY17.1H

Notes:

FY15 FY16 FY15.1H FY16.1H FY17.1H

Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for

outstanding losses + Loss adjustment expenses) / Earned premiums

[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]

Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written

Net expense ratio = Expenses related to underwriting / Net premiums written

Operating Performance: Sony Assurance (3)

Attachment

Non-consolidated Solvency Margin Ratio

（%）

800

693.5%

730.8%

784.1%

600 +53.3pt

400

200

Mar. 16 Mar. 17 Sep. 17

Highlights of Operating Performance: Sony Bank (Consolidated/Non-consolidated)

Consolidated ordinary revenues Consolidated ordinary profit

+6.5%

(JPY bn)	FY16.1H	FY17.1H	Change
Consolidated ordinary revenues	18.6	19.8	+1.2	+6.5%
Consolidated ordinary profit	1.7	3.7	+1.9	+108.0%
Profit attributable to owners of the parent	1.1	2.4	+1.2	+111.8%

19.8

18.6

+108.0%

(JPY bn)		FY16.1H	FY17.1H	Change
Ordinary revenues		16.9	18.0	+1.1	+6.6%
Gross operating profit		10.0	10.5	+0.5	+5.1%
Net interest income	8.4	10.1	+1.6	+19.7%
Net fees and commissions	(0.5)	(1.5)	(1.0)	－
Net other operating income	2.1	2.0	(0.0)	(4.2%)
General and administrative expenses		8.4	7.6	(0.7)	(8.8%)
Net operating profit		1.6	2.9	+1.2	+75.8%
Ordinary profit		1.6	3.4	+1.8	+110.9%
Net income		1.1	2.3	+1.1	+107.1%
(JPY bn)		Mar. 17	Sep. 17	Change from Mar. 17
Net assets		81.3	83.2	+1.9	+2.4%
Net unrealized gains on other securities, net of taxes	4.7	5.8	+1.0	+22.4%
Total assets		2,424.2	2,578.8	+154.5	+6.4%

3.7

(JPY bn)

1.7

FY16.1H FY17.1H

＜Consolidated＞

◆Ordinary revenues increased year on year due to an increase in interest income on loans in line with a favorably growing balance of mortgage loans, and an increase in interest income on securities. Ordinary profit increased year on year, due to a decrease in operating expenses, especially in advertising expenses for the card loan business.

＜Non-consolidated＞

◆Both gross operating profit and net operating profit increased.

・Net interest income increased due to an increase in interest income on loans and interest income and dividends on securities.

・Net fees and commissions decreased due mainly to lower fees and commissions on mortgage loans, in addition to higher fees paid for loan guarantees reflecting the growing loan balance.

・Net other operating income decreased due mainly to a decrease in gains on foreign exchange transactions.

Overview of Operating Performance: Sony Bank (Non-consolidated) (1)

Attachment

(JPY bn)			Sep. 16	Mar. 17	Sep. 17	Change from Mar. 17
Customer assets			2,095.7	2,227.1	2,284.8	+57.7	+2.6%
Deposits		1,989.6	2,112.9	2,165.2	+52.2	+2.5%
Yen	1,649.7	1,764.9	1,800.5	+35.5	+2.0%
Foreign currencies	339.9	348.0	364.6	+16.6	+4.8%
Investment trusts		106.1	114.1	119.6	+5.5	+4.8%
Loans			1,460.6	1,539.6	1,559.3	+19.6	+1.3%
Mortgage loans		1,362.9	1,452.4	1,477.9	+25.4	+1.8%
Card loans		15.3	18.0	18.9	+0.8	+4.6%
Others		82.3	69.0	*1 62.4	(6.5)	(9.5%)
Number of accounts			1.19 mm	1.24 mm	1.29 mm	+0.05 mm	+4.0%
Non-performing assets ratio*2 (Based on Financial Reconstruction Law)			0.21%	0.19%	0.15%	(0.04pt)
Non-consolidated Capital *3 adequacy ratio (domestic criteria)			9.57%	9.75%	9.43%	(0.32pt)

Increased in yen ordinary
deposit balance due mainly to an increase in newly accumulated funds via the increased number of accounts, as well as the conversion from foreign currencies backed by yen depreciation.
Increased in the U.S. dollar- denominated time deposit balance due to the promotional effect from the rise in U.S. interest rates, despite the conversion into yen led by a shift in the trend from yen appreciation to yen depreciation.
Rose due to a steady increase in mortgage loans, despite a leveling off in demand for refinancing these loans.

*1 Loans in others include corporate loans of ¥62.4 billion

*2 Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure

*3 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on page 26.

Capital adequacy ratios has been calculated by applying fundamental internal rating based approach (FIRB) from March 31, 2017.

Overview of Operating Performance: Sony Bank (Non-consolidated) (2)

On Managerial Accounting Basis

Interest Spread (Managerial Accounting Basis)

(JPY bn)		FY16.1H	FY17.1H	Change
Gross operating profit		10.0	10.5	+0.5	+5.2%
Net interest income*1 ①	9.7	11.3	+1.5	+16.3%
Net fees and commissions*2 ②	(0.2)	(1.3)	(1.0)	ー
Net other operating income*3	0.5	0.5	+0.0	+0.8%
Gross operating profit (core profit) (A)＝①＋②		9.4	10.0	+0.5	+5.5%
Operating expenses and other expenses ③		8.4	7.6	(0.7)	(8.9%)
Net operating profit (core profit) ＝(A)－③		1.0	2.3	+1.2	+119.7%

Yield on investment Yield on financing Interest spread

（%）

1.5

1.19 1.13

1 0.93

(0.02pt)

0.91

■Managerial accounting basis

The following adjustments are made to the figures on a financial account for profits and losses more appropriately.

*1: Net interest income: Includes profits and losses associated with fund investment recorded in net other operating income, including gains or losses from currency swap transactions.

*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign currency transactions recorded in net other operating income.

*3: Net other operating income: After the above adjustments (*1 and *2), mainly consists of profits and losses for bond and derivative dealing transactions.

0.5

0.26 0.22

FY16.1H FY17.1H

■Core profit

Profits and losses exclude net other operating income, which includes those on bond and derivative dealing transactions, and stands for Sony Bankʼs basic profits.

Note: Interest spread=(Yield on investment)-(Yield on financing)

Operating Performance:

Sony Bank (Non-consolidated) (1)

Attachment

Deposits Loans

Yen Deposits Foreign currency deposits Mortgage loans Others

(JPY bn)

2,112.9

2,165.2

(JPY bn)

1,539.6

1,559.3

2,000

1,500

1,000

1,923.5

335.5

1,587.9

348.0

1,764.9

+52.2

364.6

1,800.5

1,500

1,000

1,344.1

107.0

1,237.1

87.1

1,452.4

+19.6

81.3

1,477.9

500

Mar. 16 Mar. 17 Sep. 17

*Corporate loans of ¥62.4 billion. Card loans of ¥18.9 billion.

Operating Performance:

Sony Bank (Non-consolidated) (2)

Balance of Securities by Credit Rating Non-Consolidated Capital Adequacy Ratio

(Domestic Criteria)

AAA AA A

BBBOthers

（%）

(JPY bn)

800

600

620.9

631.2

+58.8

690.0

9.89

9.75

(0.32pt)

9.43

400 5

200

0 Notes:

Mar. 16 Mar. 17 Sep. 17

Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for determining the capital adequacy of a bank in light of the assets held by the bank.
Capital adequacy ratios has been calculated by applying fundamental internal rating based approach (FIRB) from March 31, 2017.

Attachment

Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 (FY17)

Forecast of Consolidated Financial Results for FY17

Forecast of consolidated financial results for FY17 is unchanged from the forecast announced on April 28, 2017, while the full-year forecast of the non-life insurance business is revised upward.

(JPY bn)	FY16 （Actual）	FY17 （Forecast）	Changes	FY17.1H （Actual）	Progress rates
Consolidated ordinary revenues	1,381.6	1,430.0	+3.5%	708.3	49.5%
Life insurance business	1,243.9	1,276.1	+2.6%	632.4	49.6%
Non-life insurance business	102.3	108.9⇒110.0	+6.4%⇒+7.5%	54.7	50.3%⇒49.8%
Banking business	38.5	40.6	+5.4%	19.8	48.8%
Consolidated ordinary profit	66.3	67.0	+1.0%	32.6	48.8%
Life insurance business	56.8	56.4	(0.7%)	24.9	44.2%
Non-life insurance business	5.0	4.6⇒6.5	(8.0%)⇒+30.0%	4.5	99.7%⇒70.6%
Banking business	5.0	6.6	+30.6%	3.7	56.2%
Profit attributable to owners of the parent	41.6	42.0	+0.9%	21.5	51.4%

■Life Insurance Business

In FY17.1H, ordinary revenues exceeded our initial expectations, as an improved market environment promoted an increase in investment income in the separate account. Ordinary profit was in line with our forecasts at the beginning of the fiscal year.

Negative factors included the fact that anticipated sales of securities did not occur, as well as worsening profits on derivative transactions related to minimum guarantees for variable life insurance. Among positive factors, a lower-than-expected level of new policies lowered initial-period costs, and operating expenses were shifted to a different period.

We maintain our forecast for the full-year, taking into consideration the business environment from FY17.3Q onward.

■Non-life Insurance Business

In FY17.1H, ordinary revenues were essentially in line with our expectations. Ordinary profit for FY17.1H exceeded our expectations as the loss ratio was lower than our initial expectations.

We have revised upward the full-year forecast after partially revising projections in the loss ratio and the expense ratio from FY17.3Q onward, and reflecting operating results in FY17.1H.

■Banking Business

In FY17.1H, ordinary revenues and ordinary profit were essentially in line with our expectations, so we maintain our full-year forecasts.

Attachment

Sony Lifeʼs MCEV and ESR as of September 30, 2017

A part of the calculations of MCEV adopted simplified method except that as of March 31, 2017. Please keep in mind that the validity of these calculations has not been verified by outside specialists.

*In this part, figures, ratios and percentages changes have been rounded.

Sony Lifeʼs MCEV

(JPY bn)		Mar. 17	Jun. 17	Sep. 17	Change from Mar. 17	Change from Jun. 17
MCEV		1,441.1	1,478.2	1,523.1	+82.0	+44.9
Adjusted net worth	1,657.7	1,624.2	1,611.8	(45.9)	(12.5)
Value of existing business	(216.7)	(146.0)	(88.7)	+128.0	+57.3
(JPY bn)		FY16.4Q (3M)	FY17.1Q (3M)	FY17.2Q (3M)	FY17.1H (6M)
New business value		14.1	12.2	17.2	29.4
New business margin		3.8%	4.6%	6.4%	5.5%

Notes:

Calculated MCEV as of June 30, 2017 onward by using updated economic assumptions and lapse and surrender rate from March 31, 2017.

New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.

Reasons for changes in MCEV

・MCEV as of September 30, 2017 increased ¥44.9 billion form June 30, 2017 due mainly to a rise in interest rates in Japanese yen.

New business value/ New business margin

・New business margin for FY17.2Q (3M) was up 1.8 percentage points from FY17.1Q (3M), due mainly to a change in product mix and a rise in interest rates.

・New business value for FY17.2Q (3M) was ¥17.2 billion, up ¥4.9 billion from FY17.1Q (3M), due to a rise in new business margin.

*Please refer to the appendix page 46 for trend on JGB yields.

Sony Lifeʼs ESR

Attachment

(JPY bn)	Mar. 17	Jun. 17	Sep. 17
Insurance risk*	937.5	933.6	939.1
Market-related risk	405.1	349.3	366.5
Of which, interest rate risk**	308.9	263.1	273.7
Operational risk	28.1	28.1	28.1
Counter party risk	1.9	2.5	1.9
Variance effect	(392.0)	(372.2)	(379.4)
The risk amount based on economic value	980.6	941.3	956.3

(* ) Risk amount excluding the variance effect within Life module and Health module. (**) Risk amount excluding the variance effect within market-related risk.

(JPY bn)	Mar. 17	Jun. 17	Sep. 17
MCEV + Frictional costs	1,476.6	1,505.1	1,547.2
ESR	151%	160%	162%

Notes:

The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including insurance risk and market-related risk.
The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar but modified model based on the EU Solvency II standard method.
ESR=(MCEV + Frictional costs) / Risk amount based on economic value.

The risk amount based on economic value as of September 30, 2017 amounted to ¥956.3 billion, up ¥14.9 billion from June 30, 2017, due mainly to a increase in interest rate risk reflecting a rise in interest rates in Japanese yen.
ESR as of September 30, 2017 was 162%, up 2pt from June 30, 2017.

Appendix

Recent Topics 1

Attachment

AEGON Sony Life Insurance

Launch of sales: December 1, 2009

Common stock: ¥30 billion (including capital reserves of ¥15 billion)

Equity ownership: Sony Life insurance Co Ltd 50%, AEGON international B.V. 50% Marketing products: Individual Variable Annuities

Sales Channels: Lifeplanner sales employees and partner Banks (32*) *As of November 13, 2017

SA Reinsurance Ltd Established: October 29, 2009 Common stock: ¥15.9 billion

Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50% Business: Reinsurance business

*AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint ventures established by Sony Life and AEGON Group.

Sony Bankʼs Mortgage Loans through Sony Life

■Sony Life accounts for 19% of the amount of new mortgage loans for FY17.1H (6M) Sony Life accounts for 21% of the balance of mortgage loans as of September 30, 2017

*Sony Life started handling banking agency business in January 2008.

Sony Assuranceʼs Auto Insurance Sold by Sony Life

■Sony Life accounts for approx. 3% of new automobile policies for FY17.1H (6M)

*Sony Life started handling automobile insurance in May 2001.

Recent Topics 2

＜Highlights on and after FY17.2Q＞

2017-07-02 Sony Life began providing Web policy guides and agreements

Sony Lifecare converted Yuuai Holdings Co., Ltd. (YHD) to a wholly owned subsidiary

2017-07-10 （YHD changed its corporate name to Proud Life Inc. on Aug. 1, 2017）

2017-08-08 Sony Bank began providing cloud funding platform "Sony Bank GATE"

Sony Life established a joint venture, Sony Life Financial Advisors Pte. Ltd., with Starts

2017-08-10 Securities Co., Ltd. in Singapore

2017-09-01 Sony Bank opened "CONCULTING PLAZA" in Ginza, Tokyo

Sony Lifecare announced to open its 3rd "SONARE" brand nursing care home in Nerima-Ku,

2017-09-06 Tokyo by Autumn 2018

2017-09-19 Sony Life launched a service to acquire medical certificates on behalf of policyholders Sony Life commenced sale of new product: "U.S. Dollar-Denominated Single Premium

2017-10-02

2017-10-05

2017-10-09

2017-11-01

Whole Life Insurance (Non-Notification Type)" and "U.S. Dollar-Denominated Living Benefit

Whole Life Insurance (Living Standard Type)"

Sony Assurance began offering a web-based insurance claims service, allowing policyholders to make medical insurance claims via its website

Sony Bank Began issuing "Takashimaya Platinum Debit Card" through an alliance with Takashimaya Co., Ltd. and Takashimaya Credit Co., Ltd.

Sony Assurance expanded its "Secom accident on-site rush service" for automobile insurance policyholders

Sony Lifeʼs Product Portfolio

Attachment

Annualized Premiums from New Policies by Product

FY16（12M）

¥78.1 billion

Yen whole life 14%

Endowment/

FY17.2Q（3M）

¥16.2 billion

Annuities 21%

U.S. dollar-

denominated whole life 8%

Single premium

Whole life 1%

Protection-type

（term life）

Yen whole life 8%

FY17.1Q（３M）

56%

Yen whole life 8%

Endowment/ Annuities

31%

U.S. dollar-

denominated whole life 11%

¥16.1 billion

Endowment/U.S. dollar-

Protection-type

Annuities

27%

denominated whole life 11%

（term life）

50%

Protection-type

（term life）

54%

Sony Lifeʼs Asset Management

Diversify Asset Management under the Negative Interest Rate Environment

(purchase securities in the general account)

FY15 (12M）

JGBs

Japanese corporate bonds Foreign bonds

Foreign bonds 2.3%

Japanese corporate bonds 11.9%

JGBs

Japanese stocks 0.5%

・Expand investments in ultralong-term Japanese government and corporate bonds (including FILP agency bonds), based on the asset investment policy to match the liability characteristics of insurance policies.

・Increase investments in U.S. government bonds, responding to higher sales of U.S. dollar denominated insurance policies.

Japanese stocks

85.3%

FY16 (12M）

JGBs

Japanese corporate bonds Foreign bonds

Japanese stocks

Japanese stocks 0.5%

Foreign bonds 28.3%

Japanese corporate bonds

Japanese local government bonds 0.1%

JGBs 42.5%

FY17.1H (6M）

JGBs

Japanese corporate bonds Foreign bonds

Foreign bonds 12.0%

Japanese corporate bonds 31.1%

Japanese stocks 0.4%

JGBs 56.5%

Japanese local government bonds

28.6%

Japanese stocks

Notes:

Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.

The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%. (excluding, investment in subsidiaries and affiliates, and strategic investments)

Sony Life: Fair Value Information on Securities (General Account Assets)

Attachment

Fair Value Information on Securities

Fair value information on securities with market value (except trading-purpose securities)

Note: The above table includes money held in trust other than trading-purpose securities.

Valuation gains (losses) on trading-purpose securities

Note: The above chart includes trading-purpose securities included in "money held in trust", etc

（JPY bn）

Sony Lifeʼs Interest Income and Dividends (Details)

（JPY mn）	FY16.1H	FY17.1H	Change
Cash and deposits	0	0	+62.5%
Japanese bonds (including JGBs)	59,830	61,875	+3.4%
Japanese stocks	260	282	+8.5%
Foreign securities	3,512	7,027	+100.1%
Other securities	31	124	+293.8%
Loans	3,171	3,285	+3.6%
Real estate	5,430	5,455	+0.5%
Others	53	191	+254.6%
Total	72,291	78,241	+8.2%

Sony Lifeʼs Capital Gains/Losses

Attachment

FY16				FY17
（JPY mn）			1Q (3M)	2Q (6M)	3Q (9M)	4Q (12M)	1Q (3M)	2Q (6M)
Capital gains			14,501	11,796	25,628	16,114	124	2,098
Income from money held in trust, net		－	－	－	－	－	-
Income from trading securities, net		7	49	103	134	11	19
Gains on sale of securities		917	1,301	1,306	1,308	0	0
Gains on derivatives, net		8,821	4,577	－	－	－	-
Gains on hedges of variable life insurance	4,955	1,042	－	－	－	-
Gains on hedges of available-for-sale securities	3,021	1,386	－	－	－	-
Foreign exchange gains, net		－	－	24,218	14,670	49	2,078
Gains (losses) on sale of foreign bonds	－	－	2,375	2,375	－	-
Other capital gains		4,754	5,868	－	－	63	-
Capital losses			3,407	5,688	39,882	32,276	7,441	16,257
Losses on money held in trust, net		－	－	－	－	－	-
Losses on trading securities, net		－	－	－	－	－	-
Losses on sale of securities		－	－	－	－	－	0
Devaluation losses on securities		－	－	－	－	－	-
Losses on derivatives, net		－	－	34,275	30,050	7,015	14,739
Losses on hedges of variable life insurance	－	－	14,292	15,666	4,247	8,555
Losses on hedges of available-for-sale securities	－	－	2,265	2,460	1,713	2,767
Foreign exchange losses, net		3,139	5,023	－	－	－	-
Losses on sale of foreign bonds*	(1,681)	(2,375)	－	－	－	-
Other capital losses		267	665	5,606	2,226	426	1,518
Net capital gains (losses)			11,094	6,108	(14,253)	(16,162)	(7,316)	(14,159)

Total of gains on sale of securities and foreign exchange gains on sale of foreign bonds: FY17.2Q (6M): ¥0 million FY16.2Q (6M): ¥3,676 million.

* (losses) represents positive figures.

Notes on Sony Lifeʼs Capital Gains/Losses are disclosed in page 40.

Sony Lifeʼs Capital Gains/Losses (continued)

(Note1)

・Foreign exchange gains, net for FY17.1Q (3M) include foreign exchange losses of ¥242 million relating to U.S. dollar-denominated insurance. Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥515 million.

Moreover, other capital losses include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥63 million relating to foreign exchange fluctuation.

・Foreign exchange gains, net for FY17.2Q (6M) include foreign exchange gains of ¥1,583 million relating to U.S. dollar-denominated insurance. Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥2,489 million.

Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥853 million relating to foreign exchange fluctuation.

(Note 2)

Foreign exchange losses, net for FY16.1Q (3M) include foreign exchange losses of ¥4,280 million relating to U.S. dollar-denominated insurance. Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥4,754 million relating to foreign exchange fluctuation.
・Foreign exchange losses, net for FY16.2Q (6M) include foreign exchange losses of ¥6,720 million relating to U.S. dollar-denominated insurance. Gains on derivatives, net include foreign exchange gains relating to U.S. dollar-denominated insurance of ¥1,337 million.
Moreover, other capital gains include the reversal of policy reserves for U.S. dollar-denominated insurance of ¥5,868 million relating to foreign exchange fluctuation.
・Foreign exchange gains, net for FY16.3Q (9M) include foreign exchange gains of ¥21,805 million relating to U.S. dollar-denominated insurance. Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥17,445 million.
Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥4,941 million relating to foreign exchange fluctuation.
・Foreign exchange gains, net for FY16.4Q (12M) include foreign exchange gains of ¥12,389 million relating to U.S. dollar-denominated insurance. Losses on derivatives, net include foreign exchange losses relating to U.S. dollar-denominated insurance of ¥12,010 million.
Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominated insurance of ¥1,560 million relating to foreign exchange fluctuation.
（Note3）
The figures of income (losses) from money held in trust, net, income (losses) from trading securities, net, gains (losses) on derivatives and foreign exchange gains (losses), net were recorded after offsetting gains and losses of each item.

Sony Lifeʼs Quarterly Trend on New Policy Amount

Attachment

Quarterly Trend on New Policy Amount

(JPY bn)

1,500

1,250

1,000

1,324.2 1,290.7

1,437.4

1,098.9

1,260.0

1,189.0

1,050.7

1,457.7

1,115.8 1,114.8

750

500

250

FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q

Sony Lifeʼs Quarterly Trend on Annualized Premiums from New Policies

Quarterly Trend on Annualized Premiums from New Policies

Annualized premiums from new policies Of which, third-sector

(JPY bn)

22.3

20.6

22.7

19.1

20.5

18.2

15.3

23.9

16.1 16.2

3.9 3.4

4.6

3.6 4.1 3.9 3.14.4

3.1 2.8

FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q

Operating Performance : AEGON Sony Life Insurance

Attachment

◆AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of New Policies

Number and Amount of Policies in Force

New policy amount Number of new polices [ ](Thousands

Policy amount in force Number of policies in force [ ]

(JPY bn)

36.6

[6.1]

41.3

[7.9]

of policies)

(JPY bn)

600

476.7

[80.6]

501.7

[85.9]

519.7

[89.9]

(Thousands

of policies)

120

25.6

[5.5]

400 80

5 200 40

0 0

FY15.1H FY16.1H FY17.1H

0 0

Sep. 16 Mar. 17 Sep. 17

(JPY bn)	FY16.1H	FY17.1H	Change
AEGON Sony Life Insurance	(1.9)	(2.4)	(0.4)
SA Reinsurance	(0.3)	(0.0)	+0.2

Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.

SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance and SA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Method of Measuring Risk Amount Based on Economic Value (1)

Market-related Risk*1

Sony Life		(Reference) EU Solvency II Implementing Measures (Delegated Regulation)
Interest rate risk Fluctuations in net asset value based on economic value in response to the	Percentage increases or decreases differ for each currency and term. As for measuring interest rate risk in Japanese yen, introduced principal component analysis, where yield curve changes are disaggregated into three components, parallel shift, twist and		Different percentage changes in interest rates are set for each term, from one year to 20 years. For terms longer than 20 years and through 90 years, percentage changes are set using linear interpolation, with negative 29% as the percentage change for 20 years and
shocks in the right columns.	butterfly, and the yield curve is shocked by each component.		negative 20% as the percentage change for 90 years
The same applies below.	(Example)
	For Yen 30-year, 64% decrease (parallel shift), 19% decrease
	(twist), 4% decrease (butterfly)
Equity risk	Listed equities 45%, Other securities 70%		Global 39%, Others 49%*2
Real estate risk	Actual real estate	25%	Same as on the left
Credit risk	Credit risk = (market value) x (risk coefficient for each credit rating) x duration Note that durations have caps and floors, depending on credit ratings. (Example) Rating A: Risk coefficient (1.4%), cap (23), floor (1)		Credit risk = (market value) x (risk coefficient for each credit rating and duration) (Example) Rating A: Duration (Dur): 5-10 years Risk coefficient=7.0% + 0.7% x (Dur - 5 )
Currency risk	35% downside fluctuation		25% downside fluctuation

◆Revision in the risk factors of market-related risk

In FY17.1Q, Sony Life partially revised the risk factors of market-related risk.
Regarding interest rate risk in Japanese yen, the rate of change in interest rates for 40 years or less was updated based on recent market data, and the rate of change in interest rates beyond 40 years was revised, taking into account such factors as ICS(＊3) deliberations. The main result was a decrease in interest rate risk compared with March 31, 2017, due mainly to a decrease in the rate of change in Japanese yen beyond 40 years.

Notes

＊1. Principal items as of September 30, 2017.

＊2. Symmetric adjustment (an adjustment of ±10% of the average value of the stock price index during a defined period in the past) is applied.

＊3. Capital requirements for internationally active insurance groups (IAIGs) being formulated by the International Association of Insurance Supervisors (IAIS).

Method of Measuring Risk Amount Based on Economic Value (2)

Insurance Risk*1

Attachment

Sony Life	(Reference) EU Solvency II Implementing Measures (Delegated Regulation)
Mortality risk	Mortality rate increases by 15% for each year elapsed	Same as on the left
Longevity risk	Mortality rate decreases by 20% for each year elapsed	Same as on the left
Lapse risk	The largest amount of these;*2 Lapse rate increases by 50% for each year elapsed Lapse rate decreases by 50% for each year elapsed 30% of policies on which surrender value is in excess of best estimate liability are immediately surrendered	The largest amount of these; Increases by 50% in the assumed rates of lapsation for Life module, 50% for Health module Decreases by 50% in the assumed rates of lapsation for Life module, 50% for Health module 40% of policies (70% for group annuities, etc.) on which surrender value is in excess of best estimate liability are immediately surrendered
Expense risk	Operating expenses increase by 10% for each year elapsed Rate of inflation rises by 1%	Same as on the left
Disability risk	Rate of occurrence increases by 35% in the first fiscal year, rising by 25% for each year thereafter	Rate of occurrence increases by 35% in the first fiscal year, rising by 25% for each year thereafter. Recovery rate decreases by 20%.

Notes

＊1. Principal items as of September 30, 2017.

＊2. At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy.

Trend on JGB Yields (Par rate)

As of the end of each month

Trend on Risk-free Rate (Japanese yen/ Par rate)

Attachment

Convergence period:

20 year

Last liquid point: 40 year

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Contact︓

Investor Relations Department Sony Financial Holdings Inc.

TEL︓+81-3-5290-6500

Sony Financial Holdings Inc. published this content on 13 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 November 2017 05:13:02 UTC.

Original documenthttp://www.sonyfh.co.jp/en/financial_info/results/sfh_fy2017_2q_01.pdf

Public permalinkhttp://www.publicnow.com/view/A3DAC6175DDA9ED04AC9D6E331B270B6BBE03109

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Sony : Third Point sells Sony ADRs; still owns large amount of Tokyo stock -source	20-08-19	RE
REFILE-FOREX-Dollar stalls as economic uncertainties linger	20-08-19	RE
Sony Financial Holdings Inc. Announces Dividend for the Year Ended March 31, 2020	20-08-11	CI
Sony Financial Holdings Inc.(TSE:8729) dropped from S&P Japan 500	20-07-27	CI
Sony Financial Holdings Inc.(TSE:8729) dropped from S&P Global BMI Index	20-07-23	CI
Nikkei slips ahead of long weekend, railways hit by virus	20-07-22	RE
Daiichi Sankyo : Nikkei slips ahead of long weekend, cyclicals supported	20-07-21	RE
Sony Financial Holdings Inc.(TSE:8729) dropped from FTSE All-World Index	20-07-17	CI
Japan Exchange : Japanese shares ease off 5-week high on virus fears	20-07-15	RE
Sony Corporation completed the acquisition of an additional 34.9% stake in Sony Financial Holdings Inc..	20-07-12	CI
Japan's draft policy roadmap prioritises digitalisation, omits budget-balance mention	20-07-08	RE
NIKKEI : Strategists cut Nikkei forecasts, see no upside this year	20-05-27	RE
Transcript : Sony Financial Holdings Inc., 2019 Earnings Call, May 20, 2020	20-05-20
News Highlights : Top Financial Services News of the Day	20-05-20	DJ
Sony : Buys Full Ownership of Financial Unit	20-05-20	DJ
News Highlights : Top Financial Services News of the Day	20-05-20	DJ
News Highlights : Top Financial Services News of the Day	20-05-19	DJ
News Highlights : Top Company News of the Day	20-05-19	DJ
News Highlights : Top Company News of the Day	20-05-19	DJ

Sony Financial Holdings Inc.

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8729

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Sony Financial : FY17.2Q (6M) Consolidated Financial Results (Japanese GAAP) (PDF 907KB)

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