Annual Report - Sony · PDF fileSony Life Insurance Co., Ltd. Annual Report ... expressed his vision for Sony Life as a “life insurance company ... Accompanying Customers through

Annual Report

It’s apromise, enduringand truly kept.

Realizing customers’ dreams, full of hopes and expectations.

That is Sony Life’s LIFEPLANNER VALUE.

“Lifeplanner” and “LIFEPLANNER VALUE” are registered trademarks of Sony Life Insurance Co., Ltd.

Message from the President 002

The Founding of Sony Life 004

The Sony Financial Group 006

Financial Highlights 008

Fiscal 2014 Operating Performance 009

Asset Management 011

Income and Expenses 013

Assets, Liabilities and Net Assets 015

Financial Soundness 016

Market Consistent Embedded Value (MCEV) and Risk Amount Based on Economic Value 019

Corporate Slogan LIFEPLANNER VALUE 024

Educational Systems, Self-Development and Reciprocal Studies 026

Securing the Future for Our Customers

Consulting-based Sales and Follow-up Consultations 030

Providing Optimal Protection Through the Life Planning Support Service (LiPSS) 032

Sony Life’s Proprietary System Supporting Consulting-based Sales and Follow-up Consultations 034

High-Quality Follow-up Consultations That Begin with Life Planning 036

System of Claim Payment Operations 037

Service Improvements That Begin with Customer Feedback 038

Administrative Control Structure 040

ERM (Enterprise Risk Management) 042

Risk Management System 043

Personal Information Protection and Information Security 046

Compliance 049

Environmental Preservation Initiatives 054

Participation in Social Contribution Activities 056

Financial Data 063

Organization 112

Corporate History 113

Directors and Statutory Auditors 114

Corporate Data 115

Global Network 115

CONTENTS

Message from the President

Tomoo Hagimoto

President, Representative Director

Sony Life Insurance Co., Ltd. Annual Report 2015002

Mission

We will work for customers’ financial security and stability by offering optimal life insurance products and high-quality services.

Corporate Philosophy

We will prove worthy of the expectations and confidence of customers through the relentless pursuit of high-quality services that satisfy customers.

We will conduct innovative management by anticipating future needs, while boldly staying at the forefront of developments in the business environment.

We will create an open-minded workplace while maintaining an energetic organization, by respecting the individuality of employees and bringing out the very best in their talents and aptitudes.

I would like to take the opportunity afforded by this message to offer my sincerest thanks to you for your continued interest in and support of Sony Life. This is also a chance to formally introduce myself. I am Tomoo Hagimoto, and I recently assumed the position of presi-dent and representative director at Sony Life. I will strive, in this new role, to lead the Company to even greater accomplishments. Back in August 1979, Sony Life embarked on business with the declaration—“Life insurance will begin changing today. Lifeplanner sales employees will drive this change.” In the years since, the Company has led a process of reform in the life insurance market, focusing not only on the delivery of high-quality products and services but also striving to convey, with confidence and passion, the true principle of life insurance. In August 2014, Sony Life celebrated its 35th anniversary, a very welcome testament to the trust and support that the Company has earned from its many customers over the years. I joined Sony Life in 1994 as a Lifeplanner sales employee, determined to “protect the customers I serve throughout their lives.” In becoming president, I set a goal to protect customers all across Japan throughout their lives—and you can be assured that I will do my utmost to achieve this goal. The entire organi-zation, however, makes further efforts to reinforce the customer support structure and boost the quality of products and ser-vices even higher so as to hear all customers say, “Choosing Sony Life for life insurance was a really good decision.” The enduring support of our customers is, truly, what keeps us in business.

Fiscal 2014 Business ResultsIn fiscal 2014, new policy amount*1 jumped 22.7% year on year, to a record high of ¥4,771.6 billion. Policy amount in force*1—an indicator of customer trust—climbed 4.8%, to ¥40,988.7 billion, continuously charting an upward path since the Company commenced operations in 1981. Sony Life’s solvency margin ratio*2—an indicator of financial health for an insurance company—is in the industry’s top tier, hitting 2,555.0% in fiscal 2014. We will not rest content with the status quo, however, but rather continue to seek further growth to ensure our ability to protect customers.

New Developments in Fiscal 2014In May 2014, we launched Specialty Endowment Insurance, a product where policy amounts increase in the latter half of the insurance period, to better meet the needs of companies to provide condolence money and retirement benefit reserves. Then in October 2014, we debuted Living Benefit Whole Life Insurance (Living Standard Type) and Living Standard Special Provision 14, with more extensive protection in the categories of specific disability and required nursing care that enables customers to feel financially secure when serious illness or injury occurs. To consistently address the diversifying needs of our cus-tomers, we will always take our customers’ perspective and provide products and services that can garner trust and support.

Lifeplanner Value“Lifeplanner Value,” Sony Life’s corporate slogan, is the value that the Company provides to customers. Value begins with the necessary protection amount, tailored to each customer through consultation at the time a policy is drawn up. It continues through proper follow-up, including review of policy content to address changing needs over the long-term course of the policy, and encompasses advice on issues that life insurance alone cannot resolve. Our mission extends well beyond the payment of insurance claims upon the death of the insured. We also believe that a vital part of our mission is to convey the feelings of the deceased to the bereaved family—those who are protected by the life insurance policy. This is what we do. To fulfill long-term commitments to customers, we remain tirelessly committed to the very essence of the life insurance business, and with unshakable determination, we will continue to provide “Lifeplanner Value.” The enduring support and encouragement of all of our stakeholders is and always will be integral to our success.

Tomoo HagimotoPresident, Representative Director

Sony Life Insurance Co., Ltd.

*1 New policy amount and policy amount in force each represent the sum of individual insurance and individual annuities.

*2 The solvency margin ratio is a metric used by regulatory authorities to determine whether or not an insurer has sufficient claims-paying ability to withstand the occurrence of such events as a great earthquake that exceed a level of risk usually predictable.

Sony Life Insurance Co., Ltd. Annual Report 2015 003

A Life Insurance Company Carrying Forward Akio Morita’s Passion for “Contributing to Society by Taking on Challenges That Others Do Not”

The Founding of Sony Life

Sony Life got its start in August 10, 1979, when the Company was established with the core

mission of “working for customers’ financial security and stability by offering optimal life insurance

products and high-quality services,” aiming to revolutionize the industry.

The founder of Sony and Sony Life, Akio Morita, expressed his vision for Sony Life as a

“life insurance company unlike any other in the world that matches the needs of Japan.” Just as

every customer’s life is different, protection needs to be as individual as the people it is aimed for.

The Lifeplanner system was put in place to accurately determine these needs and bring extensive

expertise and experience to bear in addressing demand based on a robust philosophy and

strong conviction.

At the ceremony commemorating Sony Life’s inauguration, Akio Morita addressed employees

with the following words: “What we are trying to do here, what I am asking you to do, is to create

a life insurance company the likes of which Japan has never seen before.” This statement was in

line with Akio Morita’s passion for “contributing to society by taking on challenges that others do

not.” Now more than 30 years since that time, the Company’s Lifeplanner sales employees have

earned strong customer support for the consulting services they provide. As a result, in fiscal 2014

the Company celebrated its 35th anniversary of establishment. We look forward to passing forward

the passion of our founder in the years to come.

Photo by Kazumi Kurigami/Igfy Corporation

004

At Sony Life, the spirit and culture of mutual improvement—a willingness among Lifeplanner sales employees and Partners to help each other enhance their skills—is firmly rooted in the corporate structure. This has resulted in a solid reputation, underpinned most notably by 682* Million Dollar Round Table (MDRT) members, a top-class ranking among insurance companies in Japan. MDRT is a global, independent association comprising outstanding life insurance and financial services professionals. Members subscribe to the “whole person” concept, which centers on activities to improve their own skills as well as those of fellow professionals and to contribute to society. At Sony Life, we went a step further with the establishment of MDRT Sony for Lifeplanner sales employees and Partners, who gather several times a year for training and information exchange. In addition, various independent workshops are held across Japan throughout the year so that members can share know-how and skills and thereby refine their ability to deliver services of ever-higher quality to customers. Sony Life employees take the lead in social contribution activities under the banner “One Love, One Trust.” The Great Hanshin Awaji Earthquake, which devastated the Kobe area in 1995, was a catalyst for action, prompting employees to set up the Sony Life Volunteer Club. The club, which operates on funds donated by employees and is administered by individual employees, is actively engaged in many pursuits, including ongoing support for the elderly victims of the Great Hanshin Awaji Earthquake, volunteering for Special Olympics Nippon and Relay for Life, and reconstruction support in the wake of the Great East Japan Earthquake that ravaged the Tohoku area in March 2011.

005

The concept of Lifeplanner sales employees is based on the understanding that “the people who provide life insurance designed to match the lives of individual customers need to be professionals in the true sense of the word.” We created Lifeplanner sales employees to change the face of Japan’s life insurance industry. To ensure that they are worthy of customers’ trust, Sony Life’s Lifeplanner sales employees undergo a variety of training programs to accumulate the necessary expertise and skills, turning them into professionals in the areas of life insurance and finance.

Life insurance will begin changing today. Lifeplanner sales employees will drive this change.Lifeplanner Sales Employees

Sony Life’s insurance is tailored each customer’s individual life plan. Accordingly, providing insurance requires us to determine what sort of life the customer plans to lead. We listen carefully to a customer describe his or her dreams for the family’s future and then work with the customer to turn those hopes into specific plans. We work together on this life plan, calculating the necessary protection and putting in place the protection necessary to meet the customer’s goals. To ensure that the life insur-ance policy is serving its intended role, even after a policy agreement is signed, Lifeplanner sales employees periodically check protection and provide advice. If a customer’s circumstances change and some issue arises, the individual in charge of that policyholder, as well as Lifeplanner sales employees throughout Japan, are available to assist.

Accompanying Customers through Life’s MilestonesConsulting

Claims paid upon the death of the insured constitute conveying feelings for bereaved family members, and policy amount in force* represents the accumulation of such actions. Sony Life sees policy amount in force as the evidence of the trust customers have placed in it, as well as proof of its long-term commitment to its customers. Sony Life strives toward sound management to ensure its ability to meet these commitments as the need arises.

Fulfi lling Long-Term Commitments to Customers

Evidence of Trust ¥40,988.7 billionAs of March 31, 2015

* Policy amount in force is the total monetary amount of protection a life insurer provides its customers.

Policy Amount in Force(Individual life insurance + Individual annuities)

All for CustomersReciprocal Training and Contribution to Society

* As of June 1, 2015


(As of July 1, 2015)

The Sony Financial Group Structure (Main Subsidiaries)

(Sony Corporation)

Consolidated subsidiaries

Equity-method affiliates

Non-consolidated subsidiaries

Non-Life Insurance BusinessLife Insurance Business Banking Business Nursing Care Business

60% owned

100% owned 100% owned 100% owned

100% owned

100% owned

100% owned57% owned

AEGON Sony Life Insurance

Sony Payment Services50% owned 50% owned

The Sony Financial Group

Aiming to Become Japan’s Most Trusted and Attractive Financial Services Group

The Sony Financial Group is an integrated financial services group that, in addition to Sony Financial

Holdings, includes Sony Life, Sony Assurance Inc., Sony Bank Inc. and other companies.

Sony Financial Holdings was established in April 2004 as Japan’s first financial holding company

having insurance and banking under the same umbrella. In October 2007, the company was listed on

the First Section of the Tokyo Stock Exchange. The Sony Financial Group seeks to become the most

highly trusted financial services group in the eyes of its customers. To this end, the Group combines

diverse financial functions (savings, investment, borrowing and protection) to provide high-value-

added products and high-quality financial services matched to each and every customer’s specific

financial needs.

In terms of history and scale of business, Sony Life is a core member of the Sony Financial Group.

In addition to working on a daily basis to offer optimal life insurance products and high-quality services,

we are enhancing collaboration with Sony Assurance and Sony Bank, which receive high levels of

customer satisfaction in a variety of fields, to provide high-value-added products and financial services.

We have been particularly effective in applying Lifeplanner sales employees’ consulting skills

through cross-selling between Group companies. In fiscal 2014, Lifeplanner sales employees wrote

approximately 4% of all new Sony Assurance automobile insurance policies and some 14% of Sony

Bank mortgage loans.

Going forward, the Sony Financial Group aims to continue increasing cross-selling within the Group

and reinforcing synergies.


In August 2007, Sony Life formed a 50:50 joint venture life insurance company with the AEGON Group of the Netherlands

to focus on the individual annuity business, which was attracting wider interest due to the steadily falling birthrate and

aging population in Japan. The business commenced operations in December 2009. Sony Life took the establishment of

AEGON Sony Life Insurance as an opportunity for mounting a full-fledged effort targeting over-the-counter bank sales.

The company currently has tie-ups in place with 21 financial institutions, including Sony Life.

• Sales of AEGON Sony Life Insurance’s Products by Lifeplanner Sales EmployeesSony Life’s Lifeplanner sales employees commenced sales of AEGON Sony Life Insurance’s individual annuities in

December 2009.

Sony Life will continue to raise the level of protection and increase the service it provides customers throughout

their lives.

For product details, please see the AEGON Sony Life Insurance website (Japanese only) at http://www.aegonsonylife.co.jp/.

SA Reinsurance Ltd.In October 2009, we set up this joint venture reinsurance company with the AEGON Group as one aspect of our

cooperative operations.

Sony Assurance Established in June 1998, Sony Assurance provides optimal, high-quality insurance products and services, primarily via

Internet and over the telephone. This direct-selling non-life insurance company concentrates on automobile insurance.

• Lifeplanner Sales Employees Sell Sony Assurance’s Products Lifeplanner sales employees began selling Sony Assurance’s automobile insurance in May 2001.

By extending our offerings beyond life insurance to include automobile insurance, which covers automobile risks, we

will continue to provide comprehensive risk management for our customers.

Sony BankEstablished in April 2001, Sony Bank is an Internet bank that provides financial products, services and mortgage loans,

centering on convenient, high-quality asset management.

• Lifeplanner Sales Employees Handle Sony Bank’s Mortgage Loans and Set Up New AccountsIn January 2008, Lifeplanner sales employees began explaining the details of Sony Bank’s mortgage loans and delivering

applications. As a result, Lifeplanner sales employees are now able to respond to specific customer requests and provide

consultations about funding related to home purchases. In May 2014, Lifeplanner sales employees also began handling

procedures for opening ordinary yen deposit accounts at Sony Bank.

• Underwriting Group Credit Life Insurance for Sony Bank’s Mortgage LoansIn March 2002, Sony Life began underwriting group credit life insurance for mortgage loans extended by Sony Bank.

In addition, in April 2007 we began offering group credit life insurance with protection riders covering the three

major diseases.

Sony Lifecare Inc.Sony Lifecare Inc. was established in April 2014 as a holding company to oversee operations in the nursing care

business. The company will open pay nursing care homes that foster new social value and proactively forge strategic

alliances with companies that operate such homes.

Other Business Developments at Sony LifeIn July 2009, we opened a representative office in Taipei. This office gathers information and conducts surveys on the

financial and insurance markets in Taiwan and other parts of Greater China.

AEGON Sony Life Insurance

Sony Life Insurance Co., Ltd. Annual Report 2015 007

Financial Highlights

(Millions of yen)

For the years ended March 31 2011 2012 2013 2014 2015

Policy amount in force 35,947,326 37,345,780 39,124,675 40,500,241 42,430,898Individual life insurance 34,421,831 35,707,301 37,366,333 38,628,089 40,391,018Individual annuities 326,699 369,759 412,709 466,915 597,682Group life insurance 1,198,794 1,268,718 1,345,632 1,405,237 1,442,198

Policy amount in force for group annuities 58,937 57,811 56,503 55,196 17,210Annualized premiums from insurance in force 604,793 635,401 669,937 696,986 735,728

Medical protection, living benefit protection and other products 140,776 148,954 158,686 167,075 172,800

New policy amount 4,213,996 4,207,045 4,460,210 3,894,484 4,776,917Individual life insurance 4,166,278 4,145,663 4,396,676 3,814,291 4,625,700Individual annuities 32,746 57,664 57,931 75,088 145,926Group life insurance 14,971 3,717 5,602 5,104 5,291

Annualized premiums from new policies 71,230 70,854 73,263 63,992 76,612Medical protection, living benefit protection and other products 16,679 17,101 18,397 13,486 15,285

Ordinary revenues 900,091 967,400 1,142,274 1,197,109 1,223,827Income from insurance premiums 770,330 816,106 925,874 960,986 914,034Investment income 119,500 133,945 199,833 212,323 280,148

Ordinary expenses 826,914 897,964 1,067,614 1,127,904 1,144,162Insurance claims and other payments 297,966 287,431 293,929 327,257 382,902Investment expenses 19,303 14,370 11,686 8,506 9,727Operating expenses 99,374 105,492 109,060 113,868 115,603

Ordinary profit 73,176 69,436 74,659 69,205 79,665Net income 40,220 31,426 42,444 37,063 42,524Core profit 56,295 71,685 80,045 72,365 76,505

Common stock 70,000 70,000 70,000 70,000 70,000[Number of shares issued and outstanding (Thousands of shares)] [70,000] [70,000] [70,000] [70,000] [70,000]

Total assets 4,723,332 5,222,846 5,952,750 6,624,903 7,301,350Separate account assets 398,124 444,289 550,624 640,562 793,344

Policy reserves 4,371,484 4,843,020 5,472,930 6,123,633 6,727,241Loans 134,419 138,909 145,104 154,219 162,399Securities 4,017,583 4,545,019 5,211,535 5,954,716 6,543,703Solvency margin ratio 2,900.1% 1,980.4% 2,281.8% 2,358.7% 2,555.0% [1,720.0%]

Number of employees 5,921 6,060 6,323 6,553 6,781

Key Performance Indicators for Past Five Years

Notes: 1. Policy amount in force is the total of individual life insurance, individual annuities and group life insurance. Policy amounts 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. Policy amount in force for group annuity products is equal to the amount of outstanding policy reserves. 3. New policy amount is the total of individual life insurance, individual annuities and group life insurance. New policy amounts for individual annuities are equal to the

funds to be held at the time annuity payments commence. 4. Annualized premiums, which include individual life insurance and individual annuities, are converted to a per-year premium amount by multiplying individual premi-

ums by a coefficient corresponding to the premium payment method. (For lump-sum payment policies, premiums are divided by the number of coverage years.) 5. “Medical protection, living benefit protection and other products” is the portion of the annualized premium for medical protection benefits (hospitalization benefits,

surgical benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.). 6. Cabinet Office Ordinance No. 23 of 2010 and Public Notice of Financial Services Agency No. 48 of 2010 prescribe a revision in the methods of calculating total

solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive). Therefore, the figures for the year ended March 31, 2011 and the figures for the years ended March 31, 2012 to 2015 are calculated based on different methods. The above-stated figure in [1,720.0%] as of March 31, 2011 is calculated on the assumption that these changes were applied as of March 31, 2011. The figure is also included in disclosures for the fiscal year ended March 31, 2011.

008 Sony Life Insurance Co., Ltd. Annual Report 2015

Fiscal 2014 Operating Performance

Policy Amount in Force

New Policy Amount

¥40,988.7 billion

¥4,771.6 billion

At the end of fiscal 2014, total policy amount in force was ¥40,988.7 billion, up 4.8% from a year earlier and continu-ing the steady rise that has continued since our start of operations. This rise was due to an increase in new policy amount. We believe that these figures reflect the high level of trust we received from our policyholders, as well as high acclaim for our follow-up consultations. Group life insurance in force was ¥1,442.1 billion, up 2.6%. Consequently, the total of individual life insurance, individual annuities and group life insurance in force was ¥42,430.8 billion, up 4.8% from the previous fiscal year-end. The number of policies in force (the total for individual life insurance and individual annuities) came to 6,672,104, up 5.4%.

The new policy amount in fiscal 2014, combining individual life insurance and individual annuities, jumped 22.7% from the previous fiscal year, to ¥4,771.6 billion, reflecting higher sales of family income insurance and variable life insurance, paralleling reinforced measures to promote death-protection insurance. Group life insurance increased 3.7%, to ¥5.2 billion. The total new policy amount of individual life insurance, individual annuities and group life insurance was up 22.7%, to ¥4,776.9 billion. The number of new individual life insurance policies and individual annuities during the year was 606,654, up 13.7%.

Policy Amount in Force(Individual life insurance + Individual annuities)

New Policy Amount(Individual life insurance + Individual annuities)

40,391.0

597.6

¥40,988.7 billion

20152014201320122011

(Billions of yen)

(As of March 31)

Individual life insuranceIndividual annuities

45,000

36,000

27,000

18,000

9,000

0

34,421.8 35,707.3 37,366.3

326.6 369.7412.7

38,628.0

466.9

¥4,771.6 billion

4,625.7

145.9

4,166.2 4,145.6 4,396.6

32.7 57.657.9

3,814.2

75.0

20152014201320122011

(Billions of yen)

(Years ended March 31)

Individual life insuranceIndividual annuities

5,000

4,000

3,000

2,000

1,000

0

Policy amount in force is the total monetary amount of protection a life insurer provides its customers.

New policy amount is the total monetary amount of protection provided through new policies.

Since operations began, we have maintained consistent growth.

Our new policy amount was ¥4,771.6 billion.

009Sony Life Insurance Co., Ltd. Annual Report 2015

Product Mix

Ratio of Operating Expenses to Income from Insurance Premiums

Sales centered on death-protection products.

We continue working to raise management efficiency.

Sales centered on death-protection products*, which accounted for approximately 90% of our new policy amount in fiscal 2014, on a policy amount basis.

In fiscal 2014, our ratio of operating expenses to income from insurance premiums was 12.7%. We will continue striving to raise management efficiency.

New Policy Amount by Type of Products(Individual life insurance and individual annuities

on a policy amount basis, fiscal 2014)

Whole life15.0%

Variable life10.4%

Endowment/Educational endowment, Individual annuities8.4%

Other 1.2%

Term life65.0%

Ratio of Operating Expenses to Income from Insurance Premiums

12.7%

11.8 11.912.9 12.9

20152014201320122011

(%)25

20

15

10

5

0


Lapse and Surrender Rate

The lapse and surrender rate was 5.35%.

5.35%

12.7%

In fiscal 2014, our lapse and surrender rate for individual life insurance and individual annuities on a policy amount basis increased 0.74 percentage point, to 5.35% from the previous fiscal year. The lapse and surrender rate rose in family income insurance and living benefit insurance, as some customers switched over to new insurance products launched in October 2014. Going forward, we will seek to maintain positive levels for our lapse and surrender rate by providing protection that is tailored to each customer’s individual life plan and through enhanced follow-up consultations.

Lapse and Surrender Rate(Individual life insurance and individual annuities

on a policy amount basis)

5.35%

5.314.61

5.936.41

20152014201320122011

(%)


10

8

6

4

2

0

The lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of cancellations and lapses, excluding decreases, increases or reinstatements, by the total policy amount in force at the beginning of the fiscal year.

Selling new policies, maintaining existing policies, making insurance payouts and other tasks incur costs, such as personnel and administrative expenses. We refer to costs necessary to conduct our business as a life insurance company as operating expenses.

* This figure indicates the new policy amount of death-protection products, which excludes the new policy amount of endowment/educational endowment insurance, individual annuities and medical insurance.


Note: Please refer to page 14 for information on core profit.

During the fiscal year ended March 31, 2015, the Japanese economy experienced a modest recovery. Economic growth was negative in the first half, as the consumption tax increase prompted a demand backlash, particularly in durable goods, while unseasonable summer weather held down personal consumption. In the second half, expanded quantitative easing measures introduced by the Bank of Japan (BOJ) in October 2014 prompted yen depreciation and a recovery in exports. In addition, falling crude oil prices led to an improved balance of trade, turning economic growth positive. Real GDP growth, year on year, was a negative 6.8% for the April–June quarter, followed by a negative 2.0% in the July–September quarter. Economic growth turned positive thereafter, at 1.2% for the October–December quarter, and resulted in a positive 3.9%* for the January–March quarter. The Japanese bond market was affected significantly by the BOJ’s expansion of quantitative easing measures in October 2014. The BOJ announced plans to expand the monetary base and increase holdings of long-term Japanese government bonds (JGBs) and exchange-traded funds (ETFs) and to extend its average holding period for long-term JGBs to around 7–10 years. The market responded to the introduc-tion of these policies with growing concern about liquidity, which prompted greater fluctuation in bond yields. Yields on 10-year JGBs, an indicator of long-term interest rates, fell to 0.201% at one point at the end of October 2014 following increased quantitative easing measures. Yields turned back upward after that point, heading to 0.405% as of March 31, 2015 (down 0.237 percentage point year on year).

Stock market performance was up substantially. Stock prices remained firm throughout the year on rising corpo-rate performance and expectations of growing shareholder returns. The BOJ’s increased quantitative easing measures at the end of October 2014, combined with investment asset reallocations by the Government Pension Investment Fund and other public pension funds buoyed expectations of share purchases, driving up stock prices. As of March 31, 2015, the Nikkei Stock Average was ¥19,206.99, up ¥4,379.16 from its level on March 31, 2014. On foreign exchange markets, the yen continued to depreciate. In the first half of the year, movement against the U.S. dollar centered in a tight range around ¥103 against the dollar. Yen depreciation picked up pace, however, following the BOJ’s increased quantitative easing measures in October 2014, pushing the exchange rate down to ¥121.46 to the U.S. dollar at one point in December. Thereafter, observations of a rise in U.S. interest rates, falling commodity prices and the introduction of quantitative easing measures in Europe caused the yen–dollar exchange rate to seesaw. As of March 31, 2015, the yen was trading at ¥120.13 to the U.S. dollar, depreciating ¥16.9 from ¥103.23, its level one year earlier.

* Second preliminary estimates

Investment Yield (%)

FY2013 FY2014

Investment yield for core profit 2.35 2.35

Investment yield (general account) 2.20 2.36

Asset Management

Investment Environment

Investment Performance

As of March 31, 2015, general account assets totaled ¥6,508.0 billion, up 8.8%, or ¥523.6 billion, from one year earlier. Within the general account, positions of Japanese government and corporate bond investments came to ¥5,606.8 billion (accounting for 86.2% of general account assets); foreign bonds, ¥105.5 billion (1.6%); Japanese stocks, ¥42.4 billion (0.7%); monetary trusts, ¥313.2 billion (4.8%); policy loans, ¥162.3 billion (2.5%); real estate, ¥117.7 billion (1.8%); and cash and deposits, call loans, ¥56.8 billion (0.9%).

General Account Assets(As of March 31, 2015)

Foreign bonds 1.6%

Other securities 0.0%Real estate 1.8%Other assets 1.1%

Cash and deposits, call loans 0.9%

Japanese stocks 0.7%

Japanese government and corporate bonds86.2%

Monetary trusts 4.8%Policy loans 2.5%

Foreign stocks and others 0.4%


Investment Approach

Life insurance policies are typically long-term, so it is

important for life insurance companies to ensure that they

maintain the ability to pay their customers’ insurance claims

and other benefits well into the future. For this reason, life

insurance companies need to select investment assets having

characteristics that match those of their life insurance policies,

which represent liabilities. This ALM approach serves as our

basis for investment.

Insurance liabilities refers to the amount of money that a life

insurer needs to have accumulated at the present in order to

pay future insurance claims and other benefits.

Characteristically, insurance liabilities are highly susceptible

to interest rate fluctuations. This is because insurance liabilities

are calculated on the basis of assumptions about future interest

income. If interest rates fall, the expected interest income also

drops, leading to the need to fund higher levels of insurance

liabilities. Conversely, if interest rates rise, expected interest

income also increases, so less money is needed to match cur-

rent interest liabilities. As life insurance policies are long-term,

future interest income is likely to fluctuate broadly as interest

rates change, which means that insurance liabilities are also

highly variable. These fluctuations in insurance liabilities are

referred to as insurance liabilities’ “interest rate risk.”

Life insurers invest the insurance premiums paid by custom-

ers in marketable securities and other assets. When they do

so, however, they must remain duly cautious of the interest rate

risks inherent in their insurance liabilities.

If interest rates drop, for example, the amount of funding

required to cover insurance liabilities increases. By investing in

fixed-coupon bonds, if interest rates fall the value of underlying

assets—bonds—increases, which offsets the interest rate risk

of insurance liabilities. By investing in assets with characteris-

tics that match those of insurance liabilities, insurers are able to

appropriately control the interest rate risk of insurance liabilities.

Based on the concept of asset liability management (ALM), Sony Life prioritizes investment in assets having characteristics

that match those of insurance liabilities.

Specifically, we concentrate on investment in ultralong-term JGBs with more than 10 years remaining to maturity to match

the long-term liabilities that life insurance policies represent. In this manner, we work to appropriately control the interest rate

risk associated with insurance liabilities. At the same time, we limit our investments in stocks and other risk assets.

Sony Life Signs Up for the Japanese Version of the Stewardship Code

Basic Policy on the Stewardship Code

Sony Life has signed up for the Japanese version of the Stewardship Code, which expresses principles for responsible institutional

investors.

Sony Life’s Exercise of Voting Rights

Please see http://www.sonylife.co.jp/ (Japanese only) for details about the Company’s policy on exercising voting rights and the basic

process for exercising voting rights.

Controlling Assets and Liabilities

Assets (yen-denominated bonds, etc.)

Insurance liabilities Assets (yen-

denominated bonds, etc.)

Insurance liabilities

<Investment Assumptions: ALM>

<Life Insurance Policy Liability Characteristics and Investment>

Interest rates fall " Assets increase (bond prices rise)

Interest rates fall " Insurance liabilities increase

Interest rates rise " Assets decrease (bond prices fall)

Interest rates rise " Insurance liabilities decrease


Income from insurance premiums, which represents the largest component of income, reached ¥914.0 billion, and insurance claims and other payments to customers amounted to ¥382.9 billion.

Income and Expenses

Income from Insurance Premiums and Insurance Claims and Other Payments

Ordinary Profit and Net Income

¥914.0 billion/¥382.9 billion


In fiscal 2014, ordinary profit rebounded 15.1% year on year, to ¥79.6 billion, despite higher provision of policy reserves for minimum guarantees for variable life insurance which paralleled a dramatic increase in sales of this type of insurance. The rise in ordinary profit is primarily due to two factors: one, there was a revision to the discount rate used

Income from Insurance Premiums and Others¥914.0 billion

770.3816.1

925.8960.9

20152014201320122011

1,000

800

600

400

200

0

(Billions of yen)


Insurance Claims and Other Payments

20152014201320122011

200

160

120

80

40

0

ClaimsBenefitsAnnuities

(Billions of yen)


¥154.0 billion

11.2

63.1

46.838.3 42.2

76.5 68.9 71.0

55.5

10.7

77.4

8.2 8.59.5

79.6

Income from insurance premiums and others, which includes such income as premiums paid by customers, is the principal source of income for insurance com-panies. Insurance claims and other payments, which includes insurance claims, benefits, annuities, surrender cash that insurance companies make to customers under their insurance policies.

Ordinary profit—the difference between ordinary revenues and ordinary expenses— represents income derived from operating activities during the fiscal year. The principal sources of revenue for life insurance companies are income from insurance premiums and investment income. The main expenses are death and other claims, insurance benefits, annuity payments, provision for policy reserves and others, investment expenses and oper-ating expenses. Net income is calculated by adding extraordinary gains to ordinary profit, then subtracting provision for reserve for price fluctuations and other extraordinary losses, as well as provision and reversal for reserve for policyholders’ dividends and income taxes.

¥327.2 billion in fiscal 2013). Insurance claims, benefits and annuities amounted to ¥154.0 billion (compared with ¥143.6 billion in fiscal 2013).

Investment Income and Investment Expenses


In fiscal 2014, investment income came to ¥280.1 billion, up from ¥212.3 billion a year ago, mainly from gains on separate account assets as well as higher interest income and dividends.

Investment income is the income received through the investment in assets, including interest and dividend income, as well as gains on sale of securities. Investment expenses are the expenses incurred in order to generate investment income, including such items as losses on sale of securities, devaluation losses on securities and provision for reserve for possible loan losses.

Investment expenses came to ¥9.7 billion, up from ¥8.5 billion in the preceding year, reflecting an increase in losses on derivatives, net.

for calculating policy reserves on interest rate-sensitive whole life insurance in fiscal 2013 and there was no such impact in fiscal 2014; and two, Sony Life posted higher gains on sale of securities in the general account and an increase in the positive spread. Net income increased 14.7%, to ¥42.5 billion.

Ordinary profit, which indicates the difference between ordinary revenues and ordinary expenses, was ¥79.6 billion, and net income came to ¥42.5 billion.

Investment income, which expresses income from the investment in assets, came to ¥280.1 billion. Investment expenses, which indicates the cost of generating that income, was ¥9.7 billion.

In fiscal 2014, income from insurance premiums amounted to ¥914.0 billion, compared with ¥960.9 billion a year ago. Meanwhile, insurance claims and other payments in fiscal 2014 amounted to ¥382.9 billion (compared with


Formula for Calculating Positive Spread

Life insurance companies retain a portion of premiums received from policyholders as policy reserves in anticipation of future payments. These policy reserves are maintained by investing under the assumption that they will yield a certain rate of interest every year. This interest rate is called the “assumed interest rate (for calculating policy reserves).” A positive spread occurs when the actual yield on investment exceeds the average assumed interest rate. The reverse situation leads to negative spread, which stems from the deterioration of the investment environment or other factors.

Positive Spread

Core Profit

¥76.5 billion

In fiscal 2014, core profit grew 5.7% over fiscal 2013, to ¥76.5 billion, despite higher provision of policy reserves for minimum guarantees for variable life insurance which paralleled a dramatic increase in sales of this type of insurance. This is primarily because there was no nega-tive impact from the revision in the standard prospective yield on interest rate-sensitive whole life insurance as there had been in fiscal 2013, and also because of an increase in the positive spread.

Core profit is an indicator of the profit-earning capacity of the primary insurance business over a one-year period. The term “primary insurance business” refers to the management of income from insurance premiums received from policyholders, along with investment income to pay insurance claims, benefits, annuities and others, and to make policy reserve provisions for future payments. Adding capital gains or losses, such as on sales of securities, and one-time gains and losses to core profit produces ordinary profit, which appears on the statements of income.

Positive spread has continued since fiscal 2012.

Core profit, an indicator of profit in the mainstay insurance business, amounted to ¥76.5 billion.

Core profit of ¥76.5 billion

Net capital gains (losses) of ¥8.4 billion

Net other one-time gains (losses) of ¥(5.2) billion

Ordinary profit of ¥79.6 billion

Note: Like most other life insurers that are organized as joint stock corporations, Sony Life mainly sells life insurance that is non-profit. As no policyholder dividend is added, we are able to offer services to policyholders for lower premiums.

Life insurers organized as mutual corporations, on the other hand, typically offer for-profit policies, their income from insurance premiums includes a portion of financial resources for policyholder dividends and financial resources for these dividends are included in core profits. For this reason, mutual corporations tend to show higher core profits than joint stock corporations that operate on the same scale.

Investment yield for core profit*1

General account policy reserves*3

Positive spread

Average assumed interest rate*2

Notes: *1. Investment yield for core profit is the yield on general account policy reserves after subtracting the provision for policyholder dividend reserve from the general account investment returns included in core profit.

*2. Average assumed interest rate is the assumed yield on general account policy reserves.

*3. General account policy reserves are calculated based on the following formula for policy reserves in the general account, excluding contingency reserve: (Policy reserves at beginning of period + policy reserves at end of period – assumed interest) × 1/2

In fiscal 2014, the positive spread rose ¥4.6 billion year on year, to ¥13.0 billion, due to a decline in the average assumed interest rate.

Positive (Negative) Spread

¥13.0 billion

2.1

–1.5

–6.3

8.4

20152014201320122011

(Billions of yen)


18

12

6

0

–6

–12


Assets, Liabilities and Net Assets

Assets

Net Assets/Common Stock

Liabilities

We have maintained sufficient policy reserve to cover future insurance claim payments.

¥7,301.3 billion


As of March 31, 2015, total assets were ¥7,301.3 billion, up 10.2% from a year earlier, owing to higher investment assets, such as marketable securities, paralleling brisk expansion of policy amount in force.

As of March 31, 2015, net assets totaled ¥432.5 billion, 17.1% higher than one year earlier. As of March 31, 2015, Sony Life had total common stock of ¥70.0 billion, which

Sony Life has attained a standard policy reserve level, and uses the net level premium method to build up its reserves. Under this method, we calculate operating expenses assuming a constant, or net, level throughout the premium payment period. Our policy reserve at the end of fiscal 2014 totaled ¥6,727.2 billion, which we consider sufficient.

Total Assets¥7,301.3 billion

5,952.76,624.9

5,222.84,723.3

20152014201320122011

8,000

6,400

4,800

3,200

1,600

0

(Billions of yen)

(As of March 31)

Policy Reserve

¥6,727.2 billion

5,472.96,123.6

4,843.04,371.4

20152014201320122011

8,000

6,400

4,800

3,200

1,600

0

(Billions of yen)

(As of March 31)

Total assets, built on a base of shareholders’ equity and premiums paid by policyholders, also include tangible fixed assets, such as buildings, as well as investment assets, such as securities, and other assets in preparation for future insurance claims and benefit payments and to maintain the soundness of the Company’s insurance business. Total assets indicate corporate scale.

Net assets are the amount after deducting liabilities from assets. Common stock is the amount of money paid into a company by its shareholders. Article 6 of the Insurance Business Law of Japan prescribes a minimum of ¥1.0 billion.

Net assets, the amount after deducting liabilities from assets, was ¥432.5 billion. Common stock was ¥70.0 billion.

Total assets, which indicate a company’s scale, are growing steadily.

¥6,727.2 billion Policy reserve, which is included within insurance reserves, accounts for the majority of insurance company liabilities. Policy reserve is a fund derived from income from insurance premiums and investments, held in reserve to ensure life insurance companies are able to pay future insurance claims. Policy reserve is mandatory under the Insurance Business Law of Japan.

has been wholly provided by Sony Financial Holdings, an interim financial holding company of Sony Corporation, since April 1, 2004.


Real Net Assets

(A) ¥1,883.0 billion/ (B) ¥1,043.5 billion

As of March 31, 2015, real net assets (A) amounted to ¥1,883.0 billion, up 39.9% year on year, while real net assets (B) were ¥1,043.5 billion, up 13.9%.

Real Net Assets

¥1,883.0 billion

¥1,043.5 billion

1,396.8

845.1

1,346.4

916.1871.4715.5

606.9 629.1

20152014201320122011

2,000

1,600

1,200

800

400

0

Real net assets (B)Real net assets (A)

(As of March 31)

(Billions of yen)

Real net assets are the net value of total assets (the fair value of securities and tangible fixed assets) minus the value of total liabilities (excluding contingency reserve and other liabilities that are similar to capital). Sony Life employs integrated ALM, determining the liability characteristics represented by long-term insurance policies and marking to market both assets and liabilities. As a result, we invest primarily in JGBs, ensuring that our investments have sufficient liquidity and categorizing the majority of our investments as held-to-maturity bonds. Real net assets are the standard on which regulatory authorities base orders to halt operations, from the perspective of soundness of operations. These real net assets (shown in the table as “real net assets (A)”) include, on the asset side, held-to-maturity securities that are marked to market. However, as liabilities are not marked to market, ALM’s effectiveness is not reflected appropriately. To ensure that ALM is being administered appropri-ately, regulatory authorities need to evaluate assets that exclude unrealized gains and losses on held-to-maturity bonds and policy reserve matching bonds. For this reason, Sony Life also calculates real net assets according to these standards (shown in the chart as “real net assets (B)”).

(Billions of yen)

As of March 31 2011 2012 2013 2014 2015

(1) Total amount to be recorded as assets (= + + + – ) 4,703.1 5,379.3 6,503.4 7,056.2 8,159.8

Total assets on the balance sheet 4,723.3 5,222.8 5,952.7 6,624.9 7,301.3

Difference between fair value and balance sheet amount of securities (22.1) 155.8 551.7 430.3 839.4

Unrealized gain or loss on tangible fixed assets 1.9 0.6 (1.0) 1.0 19.0

Unrealized gain or loss other than tangible fixed assets — — — — —

Deferred tax assets for available-for-sale securities — — — — —

(2) An amount calculated based on total amount to be recorded as liabilities (= – – – – ) 4,096.1 4,507.9 5,106.5 5,709.8 6,276.8

Total liabilities on the balance sheet 4,507.9 4,958.0 5,610.4 6,255.6 6,868.8

Reserve for price fluctuations 16.7 25.3 32.2 41.5 42.8

Contingency reserve 51.5 55.3 59.5 63.6 68.7

Part of reserves for future insurance claim payment 335.3 351.1 373.0 400.2 429.6

Excess of amount equivalent to surrender values ( (a)) 334.2 350.4 372.5 400.0 429.3

Unallocated amount in reserve for policyholders’ dividends ( (b)) 1.1 0.7 0.4 0.1 0.2

Deferred tax liabilities for available-for-sale securities 8.0 18.3 39.0 40.3 50.8

Real net assets (A) (1)–(2) (including unrealized gains and losses on held-to-maturity securities) 606.9 871.4 1,396.8 1,346.4 1,883.0

(3) Unrealized gains and losses on held-to-maturity securities (22.1) 155.8 551.7 430.3 839.4

Real net assets (B) (1)–(2)–(3) (excluding unrealized gains and losses on held-to-maturity securities) 629.1 715.5 845.1 916.1 1,043.5

We have maintained sufficient real net assets to maintain sound business operations.

Financial Soundness

Real Net Assets


Solvency Margin Ratio

2,555.0%

The solvency margin ratio is one of the indicators of soundness for life insurance companies. Sony Life’s solvency margin ratio remained high. As of March 31, 2015, this ratio was 2,555.0%, up 196.3 percentage points from one year earlier.

The solvency margin ratio indicates a company’s “ability to pay.” Life insurance companies accumulate policy reserves against the future payment of insurance claims so they can respond sufficiently to ordinarily anticipated events. However, unforeseen events sometimes occur as a result of changes in the environ-ment, such as a major disaster or a cataclysmic fall in the stock market. The solvency margin ratio is one administrative control indicator used to judge if an insurer has the ability to pay in response to such unpredictable events.

The solvency margin ratio is calculated as follows:

Formula for Calculating the Solvency Margin Ratio

Solvency margin ratio (%)

Total solvency margin

Total risk × 1/2

× 100

We have retained a high level of ability to pay in response to risks from unpredictable events.

(Millions of yen)

Item March 31, 2015

Total solvency margin (A) 1,078,363

Total risk (B) 84,411

Solvency margin ratio 2,555.0% (A)

(1/2) × (B) × 100

Total risk [= (R1 + R8)2 + (R2 + R3 + R7)2 + R4]

Insurance risk (R1) .................................Risk that claims payments will rise substantially owing to a major disaster or other factorThird-sector insurance risk (R8) ..............Risk that claims payments on third-sector insurance will rise substantially, owing to a major

outbreak of a disease or other factorAssumed interest rate risk (R2) ..............Risk that the yield on invested assets will fall below the assumed interest rate due to a

deteriorating investment environmentMinimum guarantee risk (R7) .................Risk associated with the minimum claim guarantee amount on variable life insurance and

variable annuitiesAsset management risk (R3) .................Risk that asset values will fall or that corporate borrowers will go bankrupt, owing to a

plunge in stock prices or abrupt change in exchange ratesBusiness management risk (R4) ............Risk that exceeds the scope of normal business management risk

Total solvency margin = [Common stock, etc. + Reserve for price fluctuations*1 + Contingency reserve*2 + Reserve for possible loan

losses + Net unrealized gains/losses on other securities × 90%* + Net unrealized gains/losses on real estate × 85%* – Exclusion from deferred tax assets + Unallotted portion of reserves for policyholders’ dividends + Tax effect equivalent + Excess amount of policy reserves based on Zillmer method + Subordinated debt – The portion of the excess amount of policy reserves based on Zillmer method and subordinated debt that is not included in the margin – Deductible items]

*100% in the event of an unrealized loss

*1 Reserve for price fluctuations .......... This reserve is provided to prepare for losses in the event that prices on stocks and other assets fall below expected rates.

*2 Contingency reserve ....................... This reserve is provided to ensure the ability to pay future benefits in the event that losses result from the payment of claims and other benefits owing to an actual mortality rate that is higher than the assumed mortality rate or in the event that actual yields on investment fall below expected rates of return.

This formula is used to compute all risks that fall outside the scope of normal operating risks.


Unrealized Gains on Securities

¥1,008.3 billion

Unrealized gains on securities in the general account increased, due to an increase in unrealized gains on Japanese government and corporate bonds.

Unrealized gains and losses refer to the differences between carrying amounts and fair values of securities. If fair value exceeds the carrying amount, a gain on sales of assets would be realized by liquidating them at market prices. For this reason, such unrealized gains act as a provision against various risks. Part of the unrealized gains and losses on securities is included in the total solvency margin—the numerator of the formula for calculating the solvency margin ratio.

Note: For securities with fair market values, unrealized gains on securities is the sum of net unrealized gains on held-to-maturity securities and net unreal-ized gains on available-for-sale securities. The totals for securities include figures related to securities held within monetary trusts.

(Reference: As of March 31, 2015, Sony Life assumed unrealized gains on shares to be zero when the Nikkei Stock Average is ¥8,856 and the TOPIX index is 711 points.)

Non-Performing Loans

Credit Ratings

Sony Life has no non-performing loans.

Sony Life has been rated highly by credit rating agencies.

Life insurance companies make loans as investment assets and earn interest from such loans. These comprise policy loans offered as a service to policyholders and other loans. A company’s total loan balance represents the sum of these two loan balances. Sony Life’s loan balance at the end of fiscal 2014 was ¥162.3 billion. Of this amount, policy loans amounted to

Sony Life has requested ratings from several institutions to help policyholders and potential customers make objective decisions concerning its ability to finance insurance and pay claims and benefits.

Life insurance companies make two types of loans: policy loans and commercial loans. Policy loans comprise two types, one of which is policyholder loans, which allow policyholders to draw on surrender cash within a limited value range when they require funds. The second type, automatic premium loans, are temporary loans—also limited to the value of recoverable surrender cash—extended when a policyholder is temporarily unable to pay policy premiums to prevent an insurance policy from lapsing. These loans amount to the total of premiums and interest payments. Commercial loans, which are loans other than policy loans, include loans to companies in Japan and overseas, countries and government institutions, as well as mortgage loans.

Credit ratings express a rating agency’s opinion of an insurance company’s ability to make insurance claim payments. Ratings are determined on the basis of a variety of information, including a company’s financial, income and expense information, and sales and management strategies.

¥162.3 billion and commercial loans to ¥0.0 billion. The majority of this loan balance is derived from policy loans, which are limited to the value of recoverable surrender cash. The Company has no risk-managed loans (loans for which repayment circumstances are not ordinary). Moreover, all figures listed in the loans by borrower category are classified as normal loans.

We have maintained unrealized gains within our solid asset composition.

(Billions of yen)

As of March 31 2014 2015 Change

Unrealized gains (losses) on securities in the general account 554.7 1,008.3 453.6Unrealized gains (losses) on held-to-maturity securities 430.3 839.4 409.1Net unrealized gains (losses) on available-for-sale securities 124.3 168.8 44.4

Of which, unrealized gains (losses) on Japanese government and corporate bonds 110.8 145.5 34.6Of which, unrealized gains (losses) on Japanese stocks 8.9 16.0 7.1Of which, unrealized gains (losses) on foreign securities 3.5 6.9 3.4

Note: The above ratings were assigned at Sony Life’s request. They are not evaluations of insurance companies overall, nor are they a guarantee of claim payments in the future. The ratings are the opinions of the respective rating agencies, based on the figures and information available to them at that time, and are subject to change. Please refer to each agency’s website for more details.

AAAAA1AA−

AAAAA1AA−

Rating and Investment Information, Inc.

Japan Credit Rating Agency, Ltd.

Moody’s Investors Service, Inc.

Standard & Poor’s

Insurance claims paying ability

Ability to pay insurance claims

Insurance financial strength rating

Insurer financial strength rating

Credit Ratings (Ratings as of July 1, 2015)


As an alternative to traditional EV, Sony Life began disclosing, as of March 31, 2008, Market Consistent Embedded Value (MCEV), based on European Insurance CFO Forum Market Consistent Embedded Value Principles©* (MCEV Principles). MCEV is defined as the present value of distributable earnings to shareholders generated from assets allocated to the covered business

*Copyright©Stichting CFO Forum Foundation 2008

after sufficient allowance for the aggregate risks in the covered business. MCEV consists of adjusted net worth and the value of existing business. However, MCEV covers only policy amount in force as of the date of valuation, and excludes the potential value of future new business, which is considered a constituent of the economic value of an insurance company.

• Life insurers have a profit structure in which costs tend to be high in the initial period of any new policy, resulting in losses, and profits are later made by recovering these costs during the period of insurance. Consequently, performance cannot be accurately assessed based solely on fiscal data for a single fiscal year.

• This is particularly so during years when new policy sales are strong, as first-year policy expenses are high, reducing profit. • Accordingly, EV is widely used overseas, especially in Europe, as a tool for comprehensively evaluating life insurers.

General Profit Structure of a Life Insurance Policy

Adjusted net worthResults of business activities to dateThe accumulation of profit determined in the past

Value of existing businessExpected future profits from existing policies

Embedded value (EV) is an indicator used to evaluate corporate value in the life insurance industry. In Europe, EV is disclosed by many life insurers as part of their finan-cial reports, and is used as an internal management tool. Under generally accepted accounting principles in Japan (Japanese GAAP), which are applied to life insurance com-panies in Japan, the balance sheets do not indicate the

present value of future profits on in-force business, while EV indicates the present value of future profits on in-force business together with the company’s adjusted net worth. Sony Life believes EV serves as a valuable supplement to the financial information provided under Japanese GAAP and is a helpful indicator used to evaluate corporate value.

Market Consistent Embedded Value (MCEV) and Risk Amount Based on Economic Value

About Market Consistent Embedded Value (MCEV)

Policy date

Period

Losses

Profits

MCEV = +Adjusted net worth

Value of existing business


MCEV

With regard to the trends surrounding MCEV, the CFO Forum, which is formed by the Chief Financial Officers (CFOs) of major insurance companies in Europe, has revised MCEV Principles in October 2009 and added

issues relating to liquidity premium. Readers are cautioned to be aware that the calculation standards are susceptible to change.

Note: Please see http://www.sonylife.co.jp/english/ for details.

(Billions of yen)


MCEV 1,221.3 1,322.9 101.6

Adjusted net worth 722.1 1,119.2 397.1

Value of existing business 499.1 203.7 (295.5)

New business value 55.2 48.6 (6.6)

MCEV of Sony Life as of March 31, 2015, is shown in the table below. MCEV increased ¥101.6 billion, mainly due to the acquisition of new policies, a drop in the inflation rate, and a reduction in the corporate tax rate. The value of existing business declined significantly, owing to low interest rates, but a substantial portion of the decrease was offset through the effect of ALM (namely, an increase in adjusted net worth).

MCEV as of March 31, 2015

Market Consistent Embedded Value (MCEV)

¥1,322.9 billion

1,119.2

499.1

722.1

1,221.3203.7

1,500

1,200

900

600

300

020152014

Adjusted net worthValue of existing business

(As of March 31)

(Billions of yen)

Previous fiscal year

Current fiscal year

One year later

Two years later

Use of “discount rate” to determine present value

........

Adjusted net worth

Value of existing business


Notes: 1. Frictional costs and the cost of non-hedgeable risks do not change in the sensitivity tests, with the exception of frictional costs, which are changed in terms of required capital.

2. Values of subsidiaries and affiliated companies are not changed except for stock market value sensitivity where the stock value of subsidiaries and affiliated companies are altered.

3. The impact of changing more than one assumption at a time is not congruent with the sum of impacts for each assumption.

(Billions of yen)

Assumption Change in Assumption MCEVChange in Amount

Base No change 1,322.9 —

Interest rates50bp decrease 1,191.1 (131.8)50bp increase 1,390.5 67.6Swap rates 1,294.7 (28.2)

Stock/Real estate market value 10% decrease 1,302.1 (20.8)

Stock/Real estate implied volatility 25% increase 1,302.2 (20.6)

Interest swaption implied volatility 25% increase 1,303.4 (19.5)

Maintenance expenses 10% decrease 1,343.8 20.9Lapse and surrender rates × 0.9 1,321.0 (1.9)

Mortality rates

Death protection products × 0.95 1,371.2 48.3Third-sector and annuity products × 0.95 1,316.1 (6.8)

Morbidity rates × 0.95 1,367.9 45.0Required capital Regulatory minimum 1,338.5 15.6

(Billions of yen)

MCEV

Opening MCEV (MCEV as of March 31, 2014) 1,221.3Opening adjustment (20.0)Adjusted opening MCEV 1,201.3New business value 48.6Expected existing business contribution (risk-free rate) 14.7Expected existing business contribution (in excess of risk

free rate) 7.3Transfers from value of existing business and required

capital to free surplus —Experience variances (6.3)Assumption changes 1.7Other operating variance (0.4)Operating MCEV earnings 65.7Economic variances 27.9Other non operating variance 27.9Total MCEV earnings 121.5Closing adjustments —Closing MCEV (MCEV as of March 31, 2015) 1,322.9

Adjusted Net Worth

Value of Existing Business

(Billions of yen)


Value of existing business 499.1 203.7 (295.5)Present value of certainty- equivalent

profit 869.4 652.9 (216.5)Time value of options and guarantees (123.1) (154.9) (31.8)Frictional costs (9.2) (20.2) (11.0)Cost of non-hedgeable risks (237.9) (274.1) (36.2)

The value of existing business is calculated as the present value of certainty-equivalent profit (present value of profit based on the future cash flows generated from the covered business) less the time value of options and guarantees, frictional cost (the present value of investment costs and taxes on assets backing the required capital at each point of time in the future) and the cost of non-hedgeable risks (the present value of costs to hold required capital to cover non-hedgeable risks in the future).

As of March 31, 2015, the value of existing business was down ¥295.5 billion compared with a year earlier, owing to such factors as a decrease in interest rates. A breakdown of this information is provided below.

The impact of changing the underlying assumptions of MCEV is as follows.

Reconciliation Analysis from MCEV at the End of the Prior Year

Impact of Changing Assumptions (Sensitivities)

(Billions of yen)


Adjusted net worth 722.1 1,119.2 397.1Total net assets 369.2 432.5 63.3Reserve for price fluctuations 41.6 42.8 1.3Contingency reserves 63.7 68.7 5.0Reserve for possible loan losses 0.0 0.0 0.0Unrealized gains or losses on

held-to-maturity securities 430.3 839.5 409.1Unrealized gains or losses on land

and buildings 19.4 49.8 30.4Unfunded pension liabilities (3.2) (1.9) 1.3Intangible fixed assets (23.9) (21.6) 2.3Tax effect equivalent of above

seven items (162.5) (282.0) (119.5)Valuation gains or losses on

subsidiaries and affiliated companies (12.5) (8.7) 3.8

Adjusted net worth is calculated as the market value of assets allocated for the covered business in excess of stat-utory policy reserve and other liabilities as of the valuation date. It is the total amount of the net assets line on the bal-ance sheets, adding a reserve for price fluctuations, contin-gency reserves, reserve for possible loan losses, along with unrealized gains or losses on held-to-maturity securities and unrealized gains or losses on land and buildings, deducting unfunded pension liabilities and intangible fixed assets, and deducting the amount of tax effect equivalent to these seven items, on which valuation gains or losses on subsidiaries and affiliated companies are added. As of March 31, 2015, adjusted net worth was up ¥397.1 billion compared with one year earlier, as unrealized gains or losses on held-to-maturity securities increased as a result of lower interest rates (see right).

The table below shows the reconciliation analysis of MCEV as of March 31, 2015, from MCEV as of March 31, 2014.


Sony Life began disclosing risk amount based on economic value at the end of fiscal 2011 to foster a deeper understanding of the Company’s financial soundness on the basis of economic value. As of March 31, 2015, Sony Life’s risk amount based on economic value (after tax) was ¥745.5 billion. A breakdown of the risk amount is provided below.

We have not added liquidity premium on the risk free rate as there are no products which are considered appropri-ate to apply liquidity premium as they have reasonably predictable cash flows and are considered illiquid. Assumptions including mortality and morbidity rates, lapse and surrender rates, and operating expense rates, were developed based on product best estimates as of March 31, 2015. Best-estimate assumptions are developed to reflect past and current experiences as well as assump-tions in the future. Expected future changes in assumptions should be reflected only when they are supported by sufficient reasons. Except a deteriorating trend in mortality and morbidity rates, no other expected future changes are assumed in the best-estimate assumptions applied.

As of March 31 (%)

Yen U.S. dollarTerm 2014 2015 2014 2015

1 year 0.08 0.03 0.11 0.23 5 years 0.20 0.13 1.72 1.3710 years 0.64 0.40 2.72 1.9220 years 1.50 1.14 3.37 2.3030 years 1.70 1.36 3.56 2.5440 years 1.78 1.46 — —

(%)

Yen U.S. dollarTerm March 31, 2015 March 31, 2015

1 year 0.15 0.46 5 years 0.28 1.5310 years 0.58 2.0220 years 1.15 2.3230 years 1.36 2.3940 years 1.44 2.4150 years — 2.39

We have used JGB and U.S. government bond yields as of March 31, 2015, as a risk-free rate for the certainty- equivalent projections. For JGBs, it is assumed that forward rates in the 41st year and beyond were equal to those in the 40th year. For U.S. treasuries, we have assumed that forward rates in the 31st year and beyond were equal to those in the 30th year. We have used Bloomberg’s JGB yields as our data source. The spot yields of the JGB rate for key terms are as follows:

The swap rate for key terms that are used for the sensi-tivity result with swap rates in impact of changing assump-tions (sensitivities) are as follows. The yen swap rate for the 41st year and beyond has been set at the same level as for the 40th year, and the U.S. dollar swap rate has been set at the same rate for the 51st year and beyond as for the 50th year.

Major Assumptions

Risk Amount Based on Economic Value

Note: The above-stated MCEV information is extracted from the information that the Company disclosed regarding MCEV as of March 31, 2015. For detailed information on this disclosure, please refer to Sony Life’s website, at http://www.sonylife.co.jp/english/.

Sony Life has obtained an opinion on the disclosure of MECV results as of March 31, 2015, from Milliman, Inc., which is an external actuarial consulting firm with expertise concerning MCEV valuations, based on the Company’s

Opinion of Third-Party Organization

requests that Milliman review its MCEV calculation methods, assumptions and calculation results. Full information about MCEV including the opinion from Milliman, Inc., is available on Sony Life’s website at http://www.sonylife.co.jp/english/.

(Billions of yen)

As of March 31 2015

Insurance risk 724.2Market-related risk 287.0Operational risk 25.9Counterparty risk 1.8Diversification effect (293.4)

The risk amount based on economic value 745.5

Note: Of market-related risks, interest rate risk was ¥218.5 billion. (This figure is before taking into consideration diversification effects within market-related risks.)

The risk amount based on economic value* refers to the total amount of Sony Life’s risks, comprehensively exam-ined and including insurance risk and market-related risk. Sony Life ensures financial soundness by keeping these risks within a proper level of MCEV, which is capital based on economic value.

* Measurement of risk based on economic value takes one-year VaR to be 99.5% and is measured using an internal model that refers to the EU Solvency II (QIS5) standard model.

• We aim for stable and sustainable business growth in corporate value by aggressively increasing policies in force and underwriting insurance risk while maintaining sufficient solvency based on economic value.

• We prioritize investment in assets having characteristics that match insurance liabilities to reduce interest rate risk related to long-term insurance policies, thereby achieving stable corporate value derived from the life insurance business.

Sony Life’s Basic Policy on Risk Preferences




Corporate SloganLIFEPLANNER VALUE

“LIFEPLANNER VALUE” is the Life—the “Sparkle”—of Life Insurance.

“LIFEPLANNER VALUE,” the Sony Life corporate slogan, expresses the value we provide to our customers.

We will help customers realize their dreams.We will protect customers throughout their lives.

To fulfill these promises, we work with our customers to develop personalized life plans, the first step in defining each family’s dreams and future. We utilize these life plans to analyze each customer’s current income and expenses and future family finance needs and to calculate an appropriate protection amount, plotted on a timeline, that would enable his or her family to realize dreams and protect its future even if the unexpected occurs. Each customer is unique, so we provide optimal life insurance for his or her specific requirements. For the life insurance policy that a customer signs to serve its intended purpose, should the unexpected occur, we conduct follow-up reviews to catch changes at each stage in a customer’s life and offer advice to ensure the individual has the most appropriate level of protection as circumstances evolve. However, people encounter many events over the course of a long life that life insurance alone cannot address, such as children’s education, the purchase of a home, a change in job or the decision to set out independently, and even the “second life” of the middle-aged and seniors in retirement. Lifeplanner sales employees and Partners (independent agencies) go through various training programs—self-directed and reciprocal studies—to acquire the necessary skills and expertise to offer suitable advice that realize customers’ life plans. Through Lifeplanners and Partners, Sony Life provides an optimal level of protection and high-quality services, which ultimately translate into added value from a customer perspective.

It’s a promise, enduring and truly kept.Realizing customers’ dreams, full of hopes and expectations.That is Sony Life’s LIFEPLANNER VALUE.

We determine an appropriate amount of life insurance to be carried based on a life plan. Relationships with customers to fulfill long-term promises for financial security begin here.

We maintain a level of protection under optimum conditions to reliably fulfill promises made to customers. In addition, we follow customers through their life stages to accurately pinpoint changing protection needs as circumstances change.

We offer broader value to realize customers’ life plans. Ability, people skills and bonds among colleagues breathe “life” into life insurance.

Providing added value beyond the scope of insurance

Follow-up consultations

Calculating the necessary protection amount


Lifeplanner Sales Employees and Partners. Always for Customers, Always with Customers

Lifeplanner Sales EmployeesWe believe it is important to first consider your dreams—what you want to do in the future and what you want to do for your family, for instance—and then shape these into reality by choosing the life insurance that is the best for you. Lifeplanner sales employees help you turn dreams into reality. “Life insurance will begin changing today. Lifeplanner sales employees will drive this change.” This was Sony Life’s declaration at the time it commenced operations, and the basis for putting in place its Lifeplanner system. By ensuring that Lifeplanner sales employees are consistent leaders of innovation within the industry, we provide customers with ideal life insurance. Lifeplanner sales employees accompany their custom-ers, understanding their lives as they go through each of life’s milestones. The time that Lifeplanner sales employees share with customers and the strong trust-based relation-ships they create are an important part of helping custom-ers meet the dreams that constitute their life plans and providing value. Unfortunate circumstances are not the only time that customers experience such value. During the course of long, full lives, customers typically experience various con-cerns or problems. Lifeplanner sales employees stand by to guide customers at these times and keep them from los-ing sight of their goals. As well as the customer representa-tive, Lifeplanner sales employees throughout Japan offer their cooperation. Lifeplanner sales employees help customers reach their dreams. They remain alongside customers throughout every phase of their lives, providing essential support.

Premier AgencyExclusive agents under new model capitalizing on skills of Sony Life Lifeplanners and managers on independent road Sony Life has built a new consulting model designed to ensure customers have continuous access to a more diverse array of services, with life insurance at the core. The model is populated by Executive Lifeplanners, who have outstanding performance results and the Company’s highest qualifications, and experienced managers, who have groomed first-rate Lifeplanners with excellent skills. These people pursue new business as corporate entities, drawing on extensive knowledge and experience to meet customer needs. Today’s turbulent times call for insurance professionals who can design a wide variety of proposals and leverage problem-solving expertise in distinct areas of specializa-tion. Being this kind of professional, with the ability to address customer needs promptly and with a high level of competency, is the Premier Agency’s mission. Premier Agencies work with alliance partners— specialists—in various fields, including accounting, taxation, law and medicine, to deliver high-quality con-sultations in four priority segments: wealth management, life planning and life design, business consulting and succession, and healthcare support. These efforts transcend generations, honing in on customers’ life and business needs.

PartnersIn 1989, the 10th anniversary of the Company’s found-ing, alongside its Lifeplanner channel Sony Life launched the Partner consulting channel as an independent agency system. In keeping with our mission “to work for customers’ financial security and stability by offering optimal life insur-ance products and high-quality services,” Partners are pro-fessional independent agencies who solicit insurance in partnership with Sony Life. The idea behind this channel is for Partners to offer high-quality services to customers based on their close ties with the communities in which they operate. The term “Partners” is apt because, in addition to agen-cies that act as business partners for Sony Life, they are lifelong partners to customers. Sony Life’s many Partners throughout Japan currently work as life insurance professionals that consult with customers and apply specific and advanced expertise through needs-based sales that truly fulfill their role as customers’ partners.


Sony Life provides a diverse range of educational programs designed to enable Lifeplanner sales employees and Partners to fulfill their roles as insurance and financial pro-fessionals in responding to the confidence that customers place in them.

Lifeplanner Sales Employee Training ProgramBasic Training Program (BTP) Through this training, Lifeplanner sales employees learn the attitudes required to put customers first and the skills, techniques and habits they need to perform as profession-als. All Lifeplanner sales employees take part in this training program during their first 36 months after joining the Company. At first, employees learn the fundamental concept of and need for life insurance. Then, as well as learning how to handle new policies, through training they learn generally about follow-up consultations, such as checking and maintaining post-signing life plans and protection, paying insurance claims and protecting these payments in an appropriate manner.

BTP for new employees and BTP follow-up training are held at the headquarters. In parallel, employees undergo the following training process at agency offices: BTP 1 during their first month after joining the company; BTP 6, which centers on knowledge and skills training after their second month; BTP 12, which focuses on life planning; BTP 24, which concentrates on knowledge, skills and compliance training; and BTP 36, which emphasizes the corporate market and follow-up consultations. Employees also undergo on-the-job training (OJT), meet-ing regularly with their unit managers to confirm their action progresses. Before graduating to the next level, employees take graduation tests to ensure that they have learned the things they have studied. Employees need to pass graduation tests before taking tests to qualify for non-life insurance sales, or to conduct banking agency business. The entire program is designed to ensure that employees have gained the basic skills required of a Lifeplanner sales employee and that they are ready to move on to the next level.

Educational Systems, Self-Development and Reciprocal Studies

Educational Systems for Lifeplanner Sales Employees and Partners

Lifeplanner Sales Employee Training System (As of July 1, 2015)

Life

pla

nner

sal

es e

mp

loye

esC

erti

fica

tio

n ex

am

Age

ncy

offic

e tr

aini

ng p

roce

ss H

eadq

uart

ers

trai

ning

Life

Ass

ocia

tion

of J

apan

test

ing

Fina

ncia

l pla

nner

ce

rtifi

catio

n te

stin

g

Before joiningCIPEight hours, four times

BTP(New employee training)

General process exam

Kinzai Institute for Financial Affairs, Inc.

Japan Association for Financial Planners

Special course examsVariable insurance sales certification exam

Life Insurance University course exams(Six subjects)

BTP(follow-up training)

BTP(follow-up training)

Agency office study sessions, group study sessions, sales office study sessions, etc.

Ongoing training, up to 36 months

AFPCertification

training

Assurance certification testing (more than one year of employment)

BTP 1One month after joining

Start of sales

Advanced course exam

BTP 6 2nd to 6th month after joining



OJT (process meetings, role playing, joint work)


General Specialty, Variable Advanced Life Insurance University

CFP®

1st Grade Certified Skilled Worker of Financial Planning (national qualification)

Total life consultant(Financial planner certified by the Life Insurance Association of Japan)

Financial Planner

Graduation test

Graduation test

Graduation test

AFP

2nd Grade Certified Skilled Worker of Financial Planning (national qualification)


Partner Training System (As of July 1, 2015)

Professional Agent Certification

Partner Training ProgramPartner Training Program (PTP) for PartnersThis program is designed to help Partners succeed in the life insurance business. In this program, Partners learn about our products and needs-based sales approaches derived from expertise we have accumulated over the years.

Professional Agent SystemSony Life introduced this solicitation certification program in 2006 to help cultivate high-quality sales personnel who understand the true value of life insurance, namely to “work closely with customers, draw up their life plans and provide optimal assurances that match those life plans.” This system involves various assessments to judge objectively that a person has the capabilities that life insur-ance businesses require. Only agents who have passed all assessment levels and surpassed predefined levels for performance and qualification are awarded the title of “Professional Agent.”

Professional Agents must have ability to listen to custom-ers and determine their needs. They must be consummate salespeople, with a high level of expertise in explaining the content and advantages of policies, and they require a level of knowledge and a track record sufficient to assure cus-tomers of their capabilities. Agents who at the culmination of long years of training have acquired the “Professional Agent” sobriquet work with our customers throughout Japan, providing life planning on a daily basis.

Par

tner

s

Initi

al tr

aini

ng Takeoff plan, until sixth month Flight plan, from seventh month

Sony Life Business College

Partner Training Program

Sales process meetings, joint work, role playing, etc.

Cer

tifi

cati

on

exam Life

Ass

ocia

tion

of J

apan

test

ing

Fina

ncia

l pla

nner

ce

rtifi

catio

n te

stin

g

General process exam

Kinzai Institute for Financial Affairs, Inc.

Japan Association for Financial Planners

Special course examsVariable insurance sales certification exam

Life Insurance University course exams(Six subjects)

AFPCertification

training

Advanced course exam

General Specialty, Variable Advanced Life Insurance University

CFP®

1st Grade Certified Skilled Worker of Financial Planning (national qualification)

Total life consultant(Financial planner certified by the Life Insurance Association of Japan)

Financial Planner

AFP

2nd Grade Certified Skilled Worker of Financial Planning (national qualification)

Ent

ry

Pro

fess

iona

l Ag

ent

cert

ifica

tio

nCapability prerequisites

Knowledge assessment

Written test to confirm knowledge of life insurance sales

System skills assessment

Practical test to confirm PC skills needed to write and maintain new contracts

Pass

Sales skills assessment

Role-playing test to confirm hands-on skills in conducting needs-based

sales through life planning

Pass

Performance prerequisites

Required qualifications

Achievement

Approximately five months


Our socioeconomic environment is undergoing major changes, owing to the advent of the information-oriented society, reforms to the social security system, diversification of financial products and a demographic shift to an aging population with a low birthrate. In these circumstances, it is vital for individuals to conduct comprehensive asset planning and risk management—or financial planning—geared to their specific life plans. Financial planners are professionals qualified to meet the financial planning needs of customers. A large number of Lifeplanner sales employ-ees study financial planning to achieve higher levels of needs-based sales capabilities.

Nurturing Financial Planners

Sony Life Academy (SLA)The Company opened its Sony Life Academy in fiscal 2003 to train its agency managers, the heads of its independent Agency Sales Division and headquarters general managers. In April 2007, we also launched a course called “Life Insurance Basics” for unit managers, Independent Agency Sales Group office managers and headquarters managers. As of March 31, 2015, 347 people had undergone SLA training. Course instructors include university professors who specialize in the topic. Teaching people who have ample real-world experience the theoretical basis for life insurance and related areas helps them grow into higher-quality insurance professionals and helps managers hone their guidance and leadership skills. Even after course completion, ongoing training is provided to assist the lifelong learning process.

Enhancing Education for Managers

Spirit Behind Creating Sony Life Academy

SLA enables Sony Life’s managers to grow into high-quality insurance professionals through autonomous learning.

SLA helps Sony Life’s managers fine-tune their own guidance, leadership and personal skills through autonomous learning.

In addition to Sony Life’s managers, through autonomous learning SLA fosters the growth of personnel who hold the key to the future of the entire Japanese life insurance industry.

Four Pillars of Sony Life Academy Education

Acquire knowledge, beliefs and convictions worthy of life insurance professionals

Help people convey the business and sales philosophies of Sony Life to others

Train people to acquire management skills Help people hone their sensitivities as human beings

CERTIFIED SKILLED WORKER OF FINANCIAL PLANNING

AFFILIATED FINANCIAL PLANNER (AFP)

People at management level, including agency managers and unit managers, have an important responsibility in turning carefully selected individuals into capable Lifeplanner sales employees. To help managers fulfill this responsibility, Sony Life continues to upgrade its educational system, which includes training to deepen understanding of the essence of life insurance, develop character and acquire leadership skills.

People with 1st Grade Credential: 120People with 2nd Grade Credential: 3,038

(As of June 1, 2015)

Through the Human Resources Development Promotion Law, the Japanese government has intro-duced a proficiency certification system to certify levels of expertise in various fields, including 1st, 2nd and 3rd grade Certified Skilled Worker of Financial Planning Credentials.

People with AFP credential: 880(As of June 1, 2015)

The Japan Association for Financial Planners is the sole issuing authority for the AFP license. This quali-fication certifies that the licensee possesses the knowledge required of a financial planner and is competent to offer advice and make proposals in response to client needs.

People with CFP® credential: 77(As of June 1, 2015)

The CFP license is an international qualification conferred by the CFP Board of Standards, Inc., of the United States. This is an authoritative qualifica-tion given only to financial planners who demon-strate advanced financial planning abilities and sound work ethics.

CERTIFIED FINANCIAL PLANNER® (CFP®)


Reciprocal Studies

MDRT is an international association of the world’s lead-ing life insurance and finance professionals. The organization has 42,000 members in 71 countries and regions (as of August 2014). Each year, leading insurance

and financial service professionals from around the world are selected as MDRT members. These members work to develop the whole person, based on the concepts of reciprocal training and contribution to society. MDRT members demonstrate superior skills, ethical standards and customer service. These business and

MDRT Sony

MDRT Sony comprises Lifeplanner sales employees and Partners of Sony Life who have become MDRT members. The

chapter holds training sessions several times a year to exchange the latest information and build their skills, with the aim of

providing top-quality consulting and other services to customers.

Chapter members, representing our most successful Lifeplanner sales employees and Partners, demonstrate their passion

by serving customers in keeping with the MDRT spirit and through reciprocal studies. Members also take the initiative by

participating in various volunteer activities.

JAIFA in Sony Life

Our Lifeplanner sales employees, unit managers and agency managers participate in JAIFA events, and as of April 1, 2015,

35 JAIFA Sony Life regional chapters have been organized in regional areas to spearhead various activities. JAIFA All Sony,

which comprises all the JAIFA members in Sony Life throughout Japan, typically meets twice each year to hold board meetings,

liaison meetings and workshops. These meetings aim to achieve a nationwide exchange of information.

Established in 1962 as the All Japan Association for Life Insurance Sales Representatives to enhance the status of life insurance salespeople through the self-development of members, the organization’s name was changed to Japan Association of Insurance and Financial Advisors (JAIFA) in 2002. Certified in April 2012 by the Cabinet Office as a public interest incorporated association, JAIFA’s activities are aimed at serving the public interest by encouraging the sound development of the life insurance industry and contributing to society in a broad sense.

Advanced consulting-based sales and follow-up consultations are linked with the satisfaction and peace of mind that Sony Life delivers to its customers. To achieve these aims, we offer a broad range of knowledge and skill training. Sony Life’s employees have embraced a spirit and culture of mutual assistance. In addition to holding independent training forums around the nation, they conduct mentoring activities on a daily basis.

regional community leaders are recognized worldwide as life insurance and financial service specialists. As of June 1, 2015, 682 Lifeplanner sales employees and Partners of Sony Life were among the largest groups forming the MDRT’s chapter in Japan.

Million Dollar Round Table (MDRT)

Japan Association of Insurance and Financial Advisors (JAIFA)

MDRT Sony assembly and training session (Otsu, October 2014)

JAIFA All Sony liaison meeting and workshop(Tokyo, April 2015)


Securing the Future for Our CustomersConsulting-based Sales and Follow-up Consultations

Sony Life proposes insurance that is tailored to the individual life plans of its customers. Accordingly, providing insurance requires us to determine what sort of life the customer plans to lead. We listen carefully to a customer describe his or her dreams for the family’s future and then work with the customer to turn those hopes into spe-cific plans. We work together on this life plan, calculating the necessary protection and putting in place the protection neces-sary to meet the customer’s goals. Sony Life refers to this process as providing consulting-based sales, and we have followed this approach diligently since the time of our establishment.

Calculating Income and Expenses, Designing Protection

During this process, we determine a family’s income and expenses, assuming they live according to the life plan we drawn up. We look at whether the family would be able to live in comfort if the unex-pected occurred. After clarifying future economic risks, Lifeplanner sales employees and Partners design the protection that most optimally fits that customer’s needs.

Life PlanningLife is constantly changing, and life insurance needs to continue offering protection throughout. Our start-ing point is to determine potential customers’ plans, dreams and timelines, to paint a picture of the future for their families and to help them envision the milestones.

We provide tailored protection to change lurking uncertainty into a sense of well-being.

Consulting-Based Sales

Giving birth Child-rearing Purchasing a home Health Medical care Retirement Nursing care,

long life

Sony Life sees life planning as a way of making visible the future life plan of the customers it is working to protect. The life planning process enables Lifeplanner sales employees and Partners to accompany customers on their journeys through life.

350万円

2,000万円

4,000万円

6,000万円

8,000万円

10,000万円

40 50 55 60 65 70 75 80 85 （歳）45

分割制必要補償額

住宅購入

整理・相続

350万円

150万円

300万円

450万円

600万円

750万円

900万円

1,050万円

1,200万円

1,350万円

1,500万円

40 50 55 60 65 70 75 80 85 90 95 （歳）45

夢プラン

結婚関連費用

教育関連費用

住宅関連費用

返済額

金融商品積立額

保険料

その他支出

本人固有の支出

生活費

税金

社会保険料

収入計

We build the life plan for a customer’s family, simulating future family income and expenses. This process clarifies the amount of protection needed.


Periodic Checks and Advice on the Life Plan and Protection

People encounter a variety of changes over the course of a long life, undergoing such experiences as child-rearing, purchasing a home, becoming sick and requiring nursing care. To ensure that the proposed life insurance is playing its properly intended role as conditions change, even after a policy is signed we periodically check protection, offer advice and provide information.

Delivering Feelings for Bereaved Family Members

If the unexpected occurs, we support the bereaved family by responding quickly. We consider it our mis-sion to communicate to the family the feelings inher-ent in the life insurance and provide support for their future happiness.

We recognize that the environments in which our customers live and work are always changing. To ensure that the life insurance policy is serving its intended role, even after a policy agreement is signed, we periodically check protection and provide advice. If a customer’s circumstances change and some issue arises, the individual in charge of that policyholder, as well as Lifeplanner sales employees and Partners throughout Japan, are available to help customers realize their life plans. Our work goes beyond simply delivering benefit payments if the unexpected occurs. We also believe that an important part of our mission is to communicate to the bereaved family the feelings inherent in the life insurance and provide support to the family. Sony Life refers to the services it provides after concluding a policy as “follow-up consultations.” We aim to provide high-quality services and earn the trust of our customers as we accompany them through life’s milestones.

We search for measures that will resolve the issues customers face as they go through life’s milestones.

If the unexpected should occur, we are standing by to communicate policyholders’ feelings and support their families.

Follow-Up Consultations

Meeting Changes in Society and Life Providing Appropriate Information and Resolving Issuesat Times Such as These:

Regularly Checking Life Plans and Offering AdviceChanges in social conditions and the economic environment can influence the future a customer envisions. We periodically confirm that appropriate protection is in place to facilitate a successful life plan. We also work with customers to update their life plan in line with changing dreams and goals for the future.

Periodic Checks and Advice on Protection

Sony Life Letter

Customer Web Service

Such major life events as the birth of a child or a change in employment can alter coverage needs. We consistently monitor the content of our customers’ protection and provide advice to ensure that their life insurance coverage meets their needs to the fullest extent possible.

We send out the Sony Life Letter to assemble policy content in an easy-to-understand format for our customers.

Various life insurance procedures and confirmation of content can be handled over the Internet.

Home “We want to set aside funds to buy a home.”

“We want to put together an appropriate mortgage loan.”

“We are thinking of accelerating our mortgage payments or refinancing our mortgage.”

“We want to learn more about housing loans.”

And so on…

Health, Medical Treatment and Nursing Care

Inquire by phone about treatment for illness and nursing care.

“We have a health-related question we would like to ask a health nurse or clinical nurse.”

“I would like to consult with a specialist physician.”

“I would like an introduction to a hospital.”

And so on…

We deliver email magazines containing useful information about medical treatment, nursing care and finance.

Child-Rearing and Education “How much will an education cost?” “We would like to set aside a regular amount as a reserve for education.”

And so on…

Retirement “We would like to start setting aside funds for our senior years.”

“We want to make investments to tide us over in our senior years.”

And so on…

Other Assets “We would like to know more about the social insurance (medical care, pension, nursing care) system.”

“We want to learn more about automobile insurance.”

And so on…

Health, Medical Treatment and Nursing Care Consultation Desk

Email Magazine


Simulation of a Life Plan Chart

This process allows us to forecast how much money will be needed, as well as when and for what purposes.

Life Plan Chart Considerations • We look at the ways in which a family’s life will change over the next few decades.• The chart looks at the period during which children will be attending school—from

kindergarten to university—and estimates expenses, including the times when siblings’ educational costs will overlap.

• The timing of life events that involve major expenditures, such as purchasing or renovating a house

• Caring for senior parents living together and the customer’s own plans for his or her senior years

• The timing for pursuing a customer’s future dreams, such as career plans that involve changing jobs or striking out on his or her own.

Providing Optimal Protection Through the Life Planning Support Service (LiPSS)

Consulting-Based Sales

Our LiPSS software connects specific coverage and an uncertain future.

This software plan allowances for contingencies so that the life plan of

a customer’s family does not go awry even if the unexpected occurs,

and clearly estimates the amount of coverage needed to offset

economic risks given a customer’s future life plan.

Even after protection begins, we use LiPSS to support customers at

different life stages and in line with changing risks.

Life Planning and Designing Protection

Eliciting Customers’ Dreams and GoalsThe first step is to learn the life paths a customer and his or her family intend to follow, as well as their dreams and goals. When forecasting the future, we look at this picture as seen by every member of a family.

Life PlanningSTEP 1


Next we run simulations to factor in the unexpected. We clarify the shortfall in the amount of money that would be sufficient to allow the bereaved family to live comfortably in the event of an untimely death.

<LiPSS> Income and Expenses on an Annual Basis for Each Year of Survival

<LiPSS> Simulation of Income and Expenses on an Annual Basis if the Unexpected Occurs

150万円

450万円

300万円

600万円

900万円

750万円

1,050万円

1,200万円

1,350万円

1,500万円

1,650万円

1,800万円

35歳 40歳 45歳 50歳 55歳 60歳 65歳 70歳 75歳 80歳 85歳

（参考例）ご本人 : 35歳会社員年収570万円 40歳で住宅購入予定家族構成 : 配偶者34歳長男6歳長女1歳

夢プランその他支出結婚関連費用教育関連費用住宅関連費用

保険料返済額

本人固有の支出生活費税金社会保険料収入計

収入の推移を表します。

住宅購入頭金の支出です。

両親からの住宅資金援助です。

お子さまの大学進学で教育費が増加し収支が赤字になります。

退職金が支給されます。

お子さまのご結婚です。

配偶者の公的年金の支給が開始されます。

ご本人の公的年金の支給が開始されます。

お子さまが独立され、生活費が少なくなります。

住宅ローンの支払です。

150万円

450万円

300万円

600万円

900万円

750万円

1,050万円

1,200万円

1,350万円

1,500万円

1,650万円

1,800万円

35歳 40歳 45歳 50歳 55歳 60歳 65歳 70歳 75歳 80歳 85歳

※万一の場合には2,000万円の住宅を購入するもの（生存時は3,000万円の住宅をローンで購入）として算出しています。

夢プランその他支出結婚関連費用教育関連費用住宅関連費用

配偶者保険料

返済額

生活費税金社会保険料収入計住宅を購入したため、その後は

維持費のみが発生します。公的年金を含む収入の推移を示します。

万一の場合にも、遺された家族でかなえたい家族旅行の夢実現の費用です。

Balance of Financial Assets

Balance of Financial Assets

0万円

150万円

300万円

450万円

600万円

750万円

900万円

1,050万円

1,200万円

1,350万円

1,500万円

-150万円

-300万円

-450万円

-600万円35歳 40歳 45歳 50歳 55歳 60歳 65歳 70歳 75歳 80歳 85歳

退職金が支給されます。金融資産残高

お子さまの大学進学で教育費が増加し金融資産が減少します。

毎年の赤字が続いた結果、金融資産がマイナスになります。

住宅購入頭金の支出です。

両親からの住宅資金援助です。

-6,000万円

-7,000万円

-5,000万円

-4,000万円

-3,000万円

-2,000万円

-1,000万円

1,000万円

2,000万円

3,000万円

0

35歳 40歳 45歳 50歳 55歳 60歳 65歳 70歳 75歳 80歳 85歳

金融資産残高住宅を購入したため、金融資産が大幅に減少します。

毎年の赤字が続いた結果、金融資産がマイナスになります。

生命保険の保険金を受け取ったため、金融資産残高が増加します。

Simulation of Future Income and Expenses• Next, we look at the potential changes in a family’s income and expenses as they progress according to the life plan

they have created. • By comparing projected income and expenses on a yearly basis, we confirm whether the life plan is viable financially. • By considering the balance between income and expenses and prioritizing expenditures, we propose realistic ways

to make improvements.

SimulationSTEP 2

Considering Life Plan Risks and Countermeasures• One factor that must be considered is whether, in the event of an untimely

death, the bereaved family would be able to live comfortably according to their life plan.

• We look at what additional money would be needed. • Based on the results of the customer’s life plan and these simulations,

our insurance professionals—Lifeplanner sales employees and Partners—analyze and consider needs from various angles before making proposals to the customer.

Necessary Amount of CoverageTo calculate the necessary amount of coverage, we run a simulation to determine the potential gap between expenses and income in the event of an untimely death. (This is the amount that needs to be covered after allowing for a survivorship pension or other public support.)

<LiPSS> Necessary Amount of Coverage

1,000万円

2,000万円

3,000万円

4,000万円

5,000万円

6,000万円

7,000万円

8,000万円

9,000万円

10,000万円

11,000万円

12,000万円

35歳 40歳 45歳 50歳 55歳 60歳 65歳 70歳 75歳 80歳 85歳

整理相続住宅購入分割性必要保障額

住宅購入を実現するための保障です。

ご家族が以後の生活に必要とする保障です。

整理・相続等のために必要な保障です。

Insurance PlanningSTEP 3


In fiscal 2012, Sony Life introduced the C-SAAF* follow-up consult-ing system along with its upgraded sales support and customer management systems, which are underpinned by its pioneering LiPSS simulation system for life planning (see pages 32–33). This system greatly reduces the burden to customers of the appli-cation process. The system also allows for the consolidated manage-ment of such information as the life plan set forth when a policy was initially taken out, along with any adjustments made to accommodate later changes in conditions. This system allows Sony Life to conduct long-term follow-up consultations in a timely manner.

* C-SAAF is an acronym for Consulting-Sales and Follow-up system.

Smartphone Connections to the Customer DatabaseWe have developed a specialized app that allows customer represen-tatives to use a smartphone to photograph health reports and other documents that customers provide during their application, and send this information to the Company’s system. While the information is being sent to the system, the app simultaneously erases the docu-ment images from the phone. This results in enhanced security of sensitive data. Linking a customer representative’s smartphone with the customer database allows the representative to call up and refer to a customer’s policy information simply by tapping on the customer’s communica-tion records. This approach allows us to respond to telephone requests in real time and store that information in our database. We can thus respond securely and swiftly to customers at any time and from any location.

Filling in a paperless application

Paperless Application ProcessA paperless application process allows customers to confirm policy content on-screen and conclude the procedure by providing an electronic signature. This paperless process can facilitate customer understanding, as well. For example, we can indicate important items for emphasis, depending on the customer, and respond to any ques-tions that customers may have about accidents and illnesses on which notification is needed. Customers can register a bank account online from which to make insurance premium payments, completing the paperless process.

Sony Life’s Proprietary System Supporting Consulting-based Sales and Follow-up Consultations

Photographing medical documents

Smartphone–system link

Consulting-based Sales


Follow-up Consultations

SLIM, a Policy Maintenance SystemSLIM enables Lifeplanner sales employees and Partners to quickly offer accurate information in response to customer inquiries and on policy maintenance procedures. SLIM allows us to review the content of each customer’s policy, conduct various trial calculations, refer to the customer’s Sony Life Letter (see page 36), and carry out a host of other processes, by simply inputting the customer’s name and then selecting any singular piece of information that identifies the customer, such as an email address. The system also auto matically drafts nec-essary documentation for changes in coverage, policyholder loans and the payment of insurance claims and benefits.

CSM SystemThe CSM system allows for the consolidated management of such information as the life plan set forth when a policy was initially taken out, along with any adjustments made to accommodate later changes in conditions. This system allows Sony Life to conduct long-term follow-up consultations in a timely manner.

Customer Household ManagementWe track changes in policies and life plans by household.

Consolidated Management and Use of Customer Information In addition to the life plan drawn up when a policy is initially taken out, the system enables detailed follow-up through the consolidated man-agement of customer communications and procedures after that time as well. The system also enables long-term follow-up over multiple generations, such as from parent to child.

Timely Follow-up Consultations via a Robust Search Function and Abundant Information

When customers first enter into a policy, we record information about their life plans and requests in a database. This approach enables us to accurately track important life events and insurance coverage, so that we can provide them with new information specific to their current needs and conduct more closely tailored follow-up activities.

SLIM

CSM

CSM


Follow-up Consultations

Sony Life LetterThe risks inherent in a life plan change according to the age. Adjustments also need to be made, taking into account lifestyle shifts or fluctuations in the social environment. Each year we send out the “Sony Life Letter” to help customers confirm the content of their protection. Customers who have registered for our Customer Web Service can also check their information on the Web at any time. Every three years, we issue a special edition, the “Regular Review Sheet.” In addition to the information provided in each year’s report, this edition encourages periodic review to ensure that protection content and other insurance aspects are optimal.

Customer Web ServiceRemaining healthy is an extremely important element of achieving a customer’s life plan. Registering with our Customer Web Service gives customers access to helpful information on illness prevention, treatment and nursing care.

Providing Information via EmailWe regularly send out emails to customers containing helpful informa-tion on current trends on health, medical care, finance and other lifestyle aspects.

Offering Information on Our Website Our website contains a variety of specialized information related to health, medical care and nursing care, covering such topics as how to read or respond to diagnostic results and providing rankings of hospitals by the number of operations they conduct on three major diseases. The site also provides detailed explanations about procedures for insurance claims and benefits.

Confirming Policy Content, Handling Various ProceduresCustomers can use personal computers, smartphones and other mobile phones to confirm policy content and handle various procedures.

Consultation in the Event of Illness, Nursing Care or Other DifficultyHealth, Medical Treatment and Nursing Care Consultation DeskCustomers may call in to our Health, Medical Treatment and Nursing Care Consultation Desk to get advice from public health nurses, registered nurses and specialists on health conditions of concern as well as issues pertaining to child-raising and nursing care.

Signing up for the policy is only the first step. As customers’ lifestyles and the environment that surrounds them is in constant flux, it is important to provide information and review protection in line with changes in the life plan. During these “follow-up consultations,” as Sony Life calls them, we continue to provide checks and offer advice even after concluding a contract to ensure that preparations are optimal.

Sony Life Letter

Email magazine

Good hospitals handling large numbers of operations

The Health, Medical Treatment and Nursing Care Consultation Desk

High-Quality Follow-up Consultations That Begin with Life Planning


Guidebook on the Payment of Insurance and Other Claims when the Unexpected Occurs

We prepared this guidebook to help customers better understand insurance or other benefit payment requests, as well as these payments. The guidebook contains information on the procedures for making a claim and includes specific examples of cases in which claim payments can and cannot be made.

System of Claim Payment Operations

Status of PaymentsThe following information represents the status of payments made against requests for payment received in fiscal 2014. The cases described below were recorded in accordance with standards drawn up by the Life Insurance Association of Japan.

Number of Policies on Which Payments Were Made in Fiscal 2014 (Individual Life Insurance)

Recognizing that the payment of insurance claims is the most important function of an insurance company, Sony Life provides insurance products that promise policyholders the security of economic protection. The commitment to pay claims is a long-term agreement between the Company and its customers. We therefore regard it as our responsibility to pay claims unfailingly to customers when needed. Sony Life strives to strengthen its payment operations, reinforcing its operating systems and structures on a daily basis.

To ensure that payments to customers are assured and swift, Sony Life assigns multiple personnel to check pay-ment approval decisions. We have also prepared reference documents and operating manuals highlighting points for caution when making payment assessments. To ensure the appropriateness of payments, in addition to internal checks by the Claims Payment Management Department, the Compliance Department runs checks of appropriateness, which are verified by knowledgeable external advisors. We also have made organizational upgrades, such as increasing the number of personnel in the Claims Payment Management Department and enhancing their education and training. When developing new products, the Product Development Department and the Claims Payment Management Department cooperate to ensure the appropriateness of claims and other payments, and share product overviews and policy stipulations.

Number of Policies (Individual Life Insurance) on Which Non-Payment Decisions Were Reached

(Instances)Claims

Death DisasterSevere Injury Other Total

Number paid 5,137 30 243 2,077 7,487

(Instances)Benefits

DeathHospital-

ization SurgerySevere Injury Other Total

Number paid 2,488 128,381 81,604 44 12,132 224,649

(Instances)Claims

Death DisasterSevere Injury Other Total

Invalid, as fraudulent 0 0 0 0 0Invalid, as acquired for illegal purchases 0 0 0 0 0Cancelled for nondisclosure reasons 5 0 0 15 20Cancelled for grave reason 1 0 0 0 1Justified exclusion 59 3 1 0 63Outside scope of reasons for payment 2 0 75 10 87Other 0 0 0 1 1Total 67 3 76 26 172

(Instances)Benefits

DeathHospital-

ization SurgerySevere Injury Other Total

Invalid, as fraudulent 0 1 1 0 0 2Invalid, as acquired for illegal purchases 0 0 0 0 0 0Cancelled for nondisclosure reasons 2 294 170 0 16 482Cancelled for grave reason 0 0 0 0 0 0Justified exclusion 23 57 9 0 2 91Outside scope of reasons for payment 0 154 10,848 29 20 11,051Other 0 16 15 0 35 66Total 25 522 11,043 29 73 11,692

Payment Operations Structure

Fundamental Policy on Payment Operations

Provision of Information Related to the Payment of Insurance and Other Claims


Service Improvements That Begin with Customer Feedback

Business Administration Control Division

Legal Division

Customer Center

Supervisory departments

MCC Committee

VOC Committee

Supervisory body, Life Insurance Association

of Japan, other

Corporate Planning Division

Executive Committee

Customer satisfaction surveys

Contacts

Customer Center

Website

[Sales offices]

Agency offices, independent agency

sales divisions and clerical offices

Implementation, reporting

Requests for improvement

Headquarters divisions

Disclose improvement status

VOC Division

Gather, analyze, evaluate, propose improvements

and determine progress on customer feedback (VOC)

*Voice Of Customer = many different types of customer feedback

Cus

tom

er fe

edba

ck

Pro

vid

e hi

gh-

qua

lity

serv

ices

Rai

se c

usto

mer

sat

isfa

ctio

n

Reporting, assignment




Lifeplanner Sales Group

Independent Agency Sales Group

Improvement planningImprovement implementationResult verification

Sony Life takes customer feedback seriously, paying careful attention to customer satisfaction and using customer feedback as a starting point for improving services. By gathering and accumulating the customer feedback we receive on a daily basis via numerous routes, we strive to improve our business. We also make extensive use of this information when planning new products and setting service policies. Our focus on customer feedback is an important step toward meeting the expectations of customers. We will continue these efforts as part of our companywide initiative to improve services.

Making Use of Customer Feedback in Management

Initiatives to Reflect Customer Feedback (VOC*) in Management (As of July 1, 2015)


Definition of a Customer “Complaint” Any expression from a policyholder to Sony Life

indicating dissatisfaction Any statement or notice that calls into question the

appropriateness of any party related to Sony Life

Preventing Complaints from RecurringWe strive to resolve the policyholder complaints quickly. We analyze the sources of complaints, consider improvement measures and work to prevent recurrence.

(No. of complaints, %)

Content

FY2012 FY2013 FY2014

Number Percentage Number Percentage Number Percentage

Subscribing to insurance policy 4,388 16.7 4,793 13.2 5,784 14.6

Premium payments 3,328 12.7 5,098 14.0 5,239 13.2

Processes and dividends after joining policy 11,453 43.6 16,347 45.0 18,139 45.9

Payment of claims and benefits 2,455 9.3 3,573 9.8 3,727 9.4

Other 4,651 17.7 6,526 18.0 6,667 16.9

Total 26,275 100.0 36,337 100.0 39,556 100.0

Note: Numbers of complaints and percentages are as of the annual report publication date for each fiscal year.

Financial Alternative Dispute Resolution (ADR) System

A financial ADR system employs a designated third-party institution (a “designated ADR institution”) to act as a fair and neutral arbiter of disputes that arise between a customer and a financial institution with the aim of reaching an amicable resolution without going through the courts. This system of resolving issues simply and quickly outside the courts is designed to provide additional protection to customers and seeks to enhance the level of trust that the customers place in financial products and services. The Life Insurance Association of Japan serves as the designated ADR institution for life insurers.

Designated ADR Institution Contact URL

Life Insurance Counseling Desk, The Life Insurance Association of Japan

+81-3-3286-2648 (Japanese only) (9:00–17:00, weekdays, except holidays)

http://www.seiho.or.jp/contact/index.html (Japanese only)

Of Feedback from Policyholders, Those Counting as “Complaints”

Customer Feedback to the Customer Center (number)

Customer Feedback to Sony Life

Consultations and Notices to the Customer Center(Instances, %)

Category

FY2012 FY2013 FY2014

Number Percentage Number Percentage Number Percentage

New policies, requests for materials 68,616 18.4 53,579 13.8 76,161 18.9

Loans, surrender cash referrals 63,639 17.0 66,255 17.0 66,782 16.6

Receipt-related 12,794 3.4 12,723 3.3 18,276 4.5

Claims and benefits 19,331 5.2 24,520 6.3 26,015 6.5

Other maintenance 166,207 44.5 163,476 42.0 161,603 40.2

Taxes, exemption certification 5,451 1.5 10,243 2.6 10,311 2.6

Other 37,243 10.0 58,297 15.0 43,074 10.7

Total 373,281 100.0 389,093 100.0 402,222 100.0

Customer Center InitiativesIn addition to handling new inquiries, our Customer Center is

available for customers to contact to discuss procedures after

entering into policies, as well as for a wide range of consulta-

tions and various requests. Requests made via the customer

center are transmitted in a timely manner to the customer

representatives or section in charge of that customer’s policy.

To ensure swift responses, the center manages the

communications it receives through to their conclusion.

The Customer Center handles some 80% of the cases of customer feedback.


Administrative Control Structure

Guided by its core mission and corporate philosophy, Sony Life strives to meet the expectations of customers, shareholders, employees, society and other stakeholders, and prove worthy of the trust that stakeholders place in the Company, while working to ensure sound business practices and appropriate management practices, which underpin medium- to long-term sustainable growth as a life insurance company and boost corporate value.

Sony Financial Holdings, Inc.

Administrative control

Executive Committee

Board of Directors

Business execution departments

Various committees

Various committees

General Meeting of Shareholders

Internal Audit Division

Accounting auditor

Statutory auditors/Audit & Supervisory Board

Audit & Supervisory Board Members’ Office

Audits by statutory auditors

Accounting audits

Internal audits

Administrative Control Through Financial Holding CompanyWith prior approval from financial holding company Sony Financial Holdings Inc. (hereafter, “SFH”), Sony Life imple-ments decisions on important aspects of business execu-tion related to Group management, including management systems, management direction and business plans, based on an administrative control agreement signed with SFH.

Board of DirectorsThe Board of Directors meets once a month, in principle, to decide on important business execution undertaken by the Company and also to supervise the execution of duties by directors. The SFH representative director and directors responsi-ble for the execution of business activities hold concurrent positions at Sony Life, which boosts the effectiveness of Sony Financial Group strategies and also ensures sound business and management practices at the Company.

Executive CommitteeSony Life has an executive committee, which has participa-tion from directors responsible for business execution as well as executive officers chosen to sit on the committee by the Board of Directors. The Executive Committee meets once a week, in principle, and decides on important matters pertaining to the execution of business by the Company, on the delegation of the Board of Directors.

Various CommitteesSony Life has set up various committees to promote effective management practices. These various commit-tees discuss issues referred to them by the Board of Directors and the Executive Committee and submit reports on the content of their discussions to the respective management group.

Statutory Auditors/Audit & Supervisory Board Statutory auditors assess the execution of duties by directors, mainly through attendance at important meet-ings, such as those of the Board of Directors. In addition, by maintaining close contact with the accounting auditor and the Internal Audit Division, statutory auditors ensure a systematic and efficient auditing structure and keep auditing processes functioning effectively. The Audit & Supervisory Board engages in discussions and makes resolutions on important matters pertaining to audits. The Audit & Supervisory Board Members’ Office was estab-lished to offer assistance to statutory auditors in performing audits and handle administrative tasks for the Audit & Supervisory Board.


The Board of Directors at Sony Life adopted the following basic policy on the establishment of an internal control system to ensure the appropriateness of business activities and to reinforce corporate governance and raise the caliber of associ-ated practices. This policy is regularly reviewed, once a year, and the system is enhanced as necessary.

1. System to ensure execution of duties by directors and employees complies with laws and regulations, and the Articles of Incorporation

i. The Board of Directors and corporate structures established by the Board of Directors (hereafter, collectively, “the Board of Directors”) shall establish a code of conduct as a basic policy for compliance and make this code clear to executives and employees of Sony Life.

ii. The Board of Directors shall prepare a compliance manual that lays out specific compliance guidelines and a compliance program that defines specific plans.

iii. The Board of Directors shall set up a compliance supervisory department to roll out a compliance program. The compliance supervisory department shall regularly report to the Board of Directors on the implementation status of the compliance program.

iv. The Board of Directors shall take a firm stance against anti-social forces, in accordance with the Basic Group Policy on Eradicating Anti-social Forces set forth by Sony Financial Holdings Inc., and shall build the structure necessary to comply with this policy.

v. The Board of Directors shall establish an internal hotline system and provide information to executives and employees of Sony Life on how to use the system. This system shall enable employees or others who feel business policies, operations or other activities contravene (or are in danger of contravening) laws and regulations to report directly to a hotline desk. The system shall prohibit any action that would put at a disadvantage any employee or other individual who provides such reports.

vi. The Board of Directors shall establish an Information Security Policy and shape a framework to properly manage information assets, including customer information.

vii. The Board of Directors shall establish a Policy on Managing Conflicts of Interest and shape a framework to properly control transactions which have the potential to harm the interests of customers.

viii. The Board of Directors shall establish a Basic Policy Related to Internal Audits and make executives and employees of Sony Life aware of the policy.

ix. The Board of Directors shall establish an internal audit supervisory department that is independent from other operating departments. The internal audit supervisory department shall liaise and cooper-ate with the statutory auditors and the accounting auditor; monitor and verify, from an independent and objective viewpoint, the imple-mentation and operational status of the internal control system; and report regularly to the Board of Directors regarding the status of internal audits.

2. System for storing and managing information related to execution of duties by directors

Sony Life has Record-Keeping Regulations to ensure that documents pertaining to the execution of duties by directors, such as meetings of the Board of Directors and Executive Committee as well as records of resolutions made at such meetings, are appropriately stored and man-aged in accordance with the law and the aforementioned regulations.

3. Regulations related to managing risk of loss, and other related systems

i. The Board of Directors shall establish Basic Rules on Risk Management, and make these rules known to executives and employees of Sony Life.

ii. The Board of Directors shall establish a risk management supervi-sory department to appropriately manage different risks, according to the Company’s rules, characteristics and business content. The risk management supervisory department shall provide to the Board of Directors an update on risk management status on a regular basis.

iii. The Board of Directors shall formulate a business continuity plan (BCP) that lays out a structure to facilitate a rapid response in times of crisis and promotes suitable measures to minimize risk. The Board of Directors shall make the BCP known to executives and employees at Sony Life.

4. System to ensure the efficient execution of duties by directors i. The Board of Directors shall establish approval regulations, organi-

zational and task-sharing regulations and other internal rules, and create an appropriate structure for the efficient execution of duties.

ii. The Board of Directors shall set up an executive committee and delegate to this committee discussion and decision-making authority for the execution of important day-to-day business activities of Sony Life.

iii. The Board of Directors shall establish Business Plan Control Regulations, formulate and oversee medium-term business plans and annual business plans, and regularly confirm progress on business plans.

5. System to ensure the appropriateness of operations at Sony Life and its subsidiaries and affiliated companies along with the corporate group to which the Company’s parent belongs

i. In view of the public nature of the life insurance business, Sony Life shall, as a life insurance company permitted to operate under the Insurance Business Act of Japan, build a system to ensure sound and appropriate execution of business activities and fairness in insurance solicitation. In addition, the Company shall establish Control Regulations for Subsidiaries and Affiliated Companies and ensure that appropriate business activities are undertaken in the corporate group by tracking their status at subsidiaries and affiliated companies through such means as reports on vital issues that determine the appropriateness of business activities undertaken at these subsidiaries and affiliated companies.

ii. The Internal Audit Division at Sony Life shall be aware of the internal control systems at subsidiaries and affiliated companies to confirm that such systems are properly in place and shall monitor and verify the results of internal and third-party audits of these subsidiaries and affiliated companies.

iii. Sony Life shall, as necessary, provide management information about itself and its subsidiaries and affiliated companies to the parent company and also cooperate with the parent company’s internal audit supervisory department.

6. Items pertaining to employees who are requested by statutory auditors to assist in their auditing duties

If statutory auditors request the assistance of employees to execute auditing duties, Sony Life is required to assign employees to this task.

7. Independence from directors of employees assigned to assist statutory auditors noted in item 6 above

i. Statutory auditors must agree to the appointment, dismissal and evaluation of employees assigned to assist them in their auditing duties under item 6 above.

ii. Employees assigned to assist statutory auditors in their auditing duties are to follow only the instructions and directions given by statutory auditors, once such requests are made.

8. System for directors and employees to report to statutory auditors, and other reporting systems

i. If directors or employees are asked by statutory auditors to provide information on issues related to the execution of business activities, they must do so immediately.

ii. If directors or employees discover a fact that could significantly affect the operations or financial condition of Sony Life, a subsid-iary, or an affiliated company, the information must be reported to statutory auditors without delay. Note that the system shall prohibit any action that would put anyone who provides such reports at a disadvantage, and the Company’s directors and employees shall be made aware of the meaning of this measure.

iii. If directors or employees become aware of a situation through the internal hotline, they must inform statutory auditors in accordance with internal rules.

9. System to ensure the effectiveness of audits by statutory auditors i. Representative directors shall endeavor to deepen interaction with

statutory auditors based on mutual understanding and trust, and shall take the steps necessary to create an environment conducive to audits by statutory auditors.

ii. When statutory auditors require advice from lawyers, certified public accountants or other outside experts to perform their audit-ing duties, or when they engage outside providers to conduct studies, appraisals or other administrative tasks, Sony Life shall pay the costs incurred or settle invoiced payment obligations, unless such activities are proved to be unnecessary to the execution of said auditing duties.

Basic Policy on Establishment of Internal Control System

Establishing an Internal Control System


ERM (Enterprise Risk Management)

Sony Life established Enterprise Risk Management (ERM) Guidelines and manages enterprise risk based on an integrated approach to risk, return and capital, which underpins efforts to fulfill its core mission and boost corporate value.

Under ERM Guidelines, we formulated a basic policy on risk preferences designed to squeeze interest rate risk as much as possible, from the perspective of assets as well as liabilities, and prioritize investment in assets with character-istics matched to insurance liabilities. Through this policy, we aim to maintain sufficient capacity to pay out future insurance claims while ensuring stable revenue from the insurance business, in consideration of the enormous inter-est rate risk precipitated by the long-term nature of life insurance policies. The guidelines also require risk appetite adjusted to the basic policy on risk preferences, and in drafting medium-term management plans and other strategic agendas, we are careful to keep our risk amount to an acceptable limit. Furthermore, we have in place a structure to weigh up countermeasures and expedite responses, in the event our risk amount goes beyond the alarm point.

Sony Life strives to achieve stable growth in Market Consistent Embedded Value (MCEV)—an integral compo-nent of corporate value—and views return on embedded value (ROEV) as a key performance indicator. MCEV growth is contingent upon sustained profitability from insurance products along with expanded business volume. We evalu-ate the profitability of products at time of development and also after sales commence, using MCEV and adjustment techniques, and utilize the results as a determining factor for setting or changing the sales commission rate and for revamping or terminating products. We also identify risk phenomenon with the potential to impact numerical targets in the medium-term management plan or adversely affect fiscal performance or corporate health, and by evaluating and analyzing influences that exert pressure on our business, we are able to raise the probability of achieving our targets.

To ensure that we are able to pay customers’ insurance claims and other benefits well into the future, we regularly check the status of risk and capital using market-adjusted techniques. We also regularly check that we have a suffi-cient level of liquid assets and carefully manage these assets to avoid running afoul of financial soundness criteria set by laws and regulations. Furthermore, we envision scenarios with the potential to exert a sizable impact on the business, and when we dis-cover risk, we evaluate and analyze how such risk might affect management targets and make preparations so that we can respond swiftly in the event a situation, however remote, happens to arise.

Efforts to Ensure Sufficient Capacity to Pay Claims

Capital

ReturnRisk

Efforts to Boost Corporate Value


Risk Management System

The increasingly diverse and complex operating environ-ment that characterizes the insurance industry today demands that insurance companies not only manage specific types of risks, such as market-related risk, insurance underwriting risk, operational risk and legal risk, properly but also identify and manage risk from an overall perspective. So at Sony Life, we drafted Basic Rules on Risk Management, which set the tone for our approach to risk management as well as risk-specific policies, and we constantly strive to reinforce the system, mainly through the establishment of corporate structures and control processes. In addition, to pinpoint the overall status of risk management efforts and weigh up responses from a perspective cutting laterally across the whole organization, we set up the Risk Management Committee, which has participation from the general managers of the divisions responsible for managing each of the risks that we face. Committee members provide updates on the status of risk management efforts in each risk category and discuss a

Sony Life’s Basic Risk Management Policy

Based on its ERM Guidelines, Sony Life aims to control risks to within the Company’s allowable scope, raise corporate value and ensure financial soundness. In this way, we aim to meet stakeholders’ expec-tations, earn their trust and satisfy our corporate social responsibilities as a life insurer.

Risk Management Structure (As of July 1, 2015)


Board of Directors Audit & Supervisory Board


Executive Committee

Risk Management Committee

Chief Actuary

Integrated Risk ManagementCorporate Planning Division

Other managerial risksOperational risksInsurance underwriting riskALM Division

Going concern riskOperations Administration Division

Office riskGeneral Affairs Division

Sales Administration Division

Personnel riskHuman Resources Division


Legal risksLegal Division

Reputational risksCorporate Communications

Division

Management risk Corporate Planning Division

Subsidiary andaffiliated company risks

New Business Development Division

Subsidiaries and affiliates

Administrative risk Operations Administration

Division

Systems riskOperations Administration

Division

Liquidity risks ALM Division

Market risk

Credit risk

Real estateinvestment risk

Market-related risksALM Division

Business Offices

variety of measures related to risk management. As well, to ensure financial soundness into the future, we regularly self-assess risk and solvency status, and implement processes to manage risk and capital. We also perform stress tests to see what kind of effect future unprofitability would have on our business, were it to occur, and to determine the need for additional response measures. The Company conducts stress tests based on a scenario whereby interest rates, share prices and currency exchange rates all fall substantially and at the same time. We perform stress tests involving a sudden rise in mortality rates owing to a major earthquake or outbreak of infectious disease, as well as stress tests that assume these events in combination.


Specific Risk Management Definitions and Procedures

Market-related RisksMarket-related risks refer to the risk of suffering losses due to fluctuations in the values of assets and liabilities. Specifically, market risk, credit risk and real estate investment risk make up the majority of the risks the Company faces. Sony Life manages market-related risks in an appropriate manner, based on internal regulations and taking into account asset and liability risk characteristics, as well as an acceptable level of risk to capital.

Market riskMarket risk refers to the risk of suffering losses due to changes in the economic values of investment assets and liabilities as a result of fluctuations in interest rates, share prices, exchange rates and/or various other risk factors. Sony Life strives to determine the amount of market risk to its assets and liabilities, taking into account the risk characteristics of interest rate risk, share price risk and exchange rate risks. In addition, Sony Life establishes risk limits, as it deems necessary, as a means of controlling the magnitude of potential market-related losses. We recognize that managing interest rate risks on assets and liabilities is of particular importance, given the substantial impact that interest rate risks on long-term insurance agreements have on management.

Credit riskCredit risk refers to the risk of suffering losses due to the decrease or loss in value of an investment asset as a result of the deterioration in the financial conditions of parties pro-viding credit facilities. When investing overseas, investments are subject to country risk, which refers to the potential difficulty in collecting invested capital due to instability or disruptions in investee countries’ governments, economies, societies or economic conditions, as well as the possibil-ity of incurring losses stemming from fluctuations in asset prices. Counterparty risk is the risk of incurring losses in the event that a transaction counterparty defaults on debt or becomes unable to fulfill specified contract obligations due to factors such as a worsening of credit. To manage credit risk, Sony Life selects potential investees with care, prioritizing stability and employing a variety of investment ceilings. In addition, Sony Life strives to ensure the stability of its investments through self-assessment of the credit quality of its assets in accordance with internal regulations, establishing reserves and recording write-offs as appropriate.

Real estate investment riskReal estate investment risk refers to the risk of suffering losses due to reduced gains on real estate as the result of fluctuations in rental income or decreases in the value of underlying real estate assets owing to changes in market conditions.

In light of the low liquidity and large capital commitments that characterize real estate investments, Sony Life has established real estate investment standards that it uses to ensure the quality of its real estate investment portfolio. Sony Life manages each property individually and sells off properties that produce investment returns that fall below these standards or for which unrealized losses exceed these levels.

Insurance Underwriting RiskInsurance underwriting risk refers to the risk of suffering losses due to unexpected changes in economic conditions and/or insurance benefit rates. With regard to insurance underwriting risk, Sony Life conducts appropriate insurance portfolio management, such as establishing policy limits as necessary on each type of insurance in line with accumulated policy reserves and capital levels. In addition, for each product it sells, the Company maintains underwriting standards, reinsurance standards and reinsurance company selection standards, as well as criteria for the improvement or elimination of these standards. These internal regulations are clearly established and periodically reviewed. Concerning reinsurance risk, Sony Life’s policies on insurance in force and reinsurance provide controls intended to ensure that, in cases where underwritten risks exceed limits on insurance in force, excess risk is adequately managed through the appropriate use of reinsurance. We do not, however, underwrite reinsurance ourselves.

Operational Risks Administrative riskAdministrative risk refers to the risk of suffering losses due to either the bankruptcy of external contractors or improper operations, or as a result of corruption or other inappropriate action by company executives, employees, insurance agents or external contractors. Sony Life strives to continually improve its internal administrative processes to reduce risk by carefully analyzing the underlying causes of failures in administrative processes, undertaking evaluations of existing risk management procedures, and developing and communicating to its employees detailed internal regulations and providing manuals governing risk management procedures. Furthermore, as part of its efforts to prevent the recurrence of past failures in administrative processes, Sony Life has implemented a self-assessment program for its internal departments of its administrative risk management activities. Sony Life has also developed internal regulations regarding the monitoring of service providers as part of its efforts to reduce administrative risk related to such third-party providers.


Systems riskSystems risk refers to the risk of suffering losses due to system crashes and malfunctions with computer systems. Systems risk also includes the risk of losses due to the inappropriate use of computer systems. Sony Life created a suitable framework to manage separately the systems risk associated with its operation of existing information technology and other systems from those associated with the development of new information technology and other systems. Sony Life improves and reexamines the system development framework by assess-ing the systems risk to analyze past system faults, recent threats and vulnerabilities affecting its existing systems infrastructure when determining its future systems needs. With regard to systems risks relating to third-party ser-vice providers, Sony Life has developed internal regulations regarding the monitoring of third-party service providers to reduce such risk. Sony Life has also developed a business continuity plan (BCP) to govern its response to potential disasters that may affect its ability to continue its operations.

Liquidity riskLiquidity risk is classified into “fund flow risk” and “market liquidity risk.” Fund flow risk stems from the worsening of cash flow in the event that deteriorating financial conditions cause a decrease in new policies, resulting in lower pre-mium income; an increase in surrender payments due to cancellations in a large number of or a large-scale cancella-tion; cash outflows resulting from a massive disaster; or suffering losses if assets must be sold in adverse condi-tions to secure funds. Market liquidity risk refers to the risk of suffering losses if assets must be sold in adverse conditions owing to market instability. Sony Life aims to minimize its holding of low liquidity assets and to adopt, and periodically review, internal regulations clarifying the methods for managing, reporting and settling cash payments in light of its immediate liquidity needs.

Other Managerial RisksOther managerial risks include legal risk, such as the risk of loss resulting from Sony Life conducting its operations in a manner that violates applicable laws and regulations, and the risk of loss resulting from Sony Life’s inability to exercise certain rights as a result of it conducting its operations in an inappropriate manner. Other managerial risks also include reputational risk, including the risk of loss resulting from negative media coverage, and rumors, defamation and other forms of criticism related to anti-social influences. Sony Life strives to establish risk management policies relating to these and other managerial risks in order to ensure its ability to conduct its operations in a sound and appropriate manner.

One characteristic of third-sector insurance is its susceptibility to future fluctuations in the insured accident rate. Therefore, policy reserves must be accumulated to hedge the uncertainty that the insured accident rate will worsen. Sony Life conducts stress tests and liability adequacy tests and confirms the certainty of their results to ensure that its policy reserves are adequate. Furthermore, in recent years we have added to our accumulation of policy reserves after taking into consider-ation recent changes in the expected accident rate related to certain types of third-sector insurance, and this reserve stood at ¥4,785 million as of March 31, 2015.

Stress Test and Liability Adequacy Test for Third-Sector InsuranceUsing various settings for each product, the stress test confirms risk coverage given the expected rate of accident occurrence and computes the contingency reserve on this basis. We confirm that the level of the expected rate of accident occurrence covers the amount of future benefits (10 years) calculated using the insured accident rate (haz-ard rate A), which is equivalent to the risk that exceeds the normally expected scope. A contingency reserve is accumulated to partially or entirely cover the shortfall. The liability adequacy test, on the other hand, is used to verify whether other sources of income and profit are suffi-cient to cover the amount of future benefits in the event that the results of the stress test indicate insufficient cover-age of the amount of future benefits (10 years) calculated using the insured accident rate (hazard rate B), which is equivalent to the risk that does not exceed the normally expected scope. If financial resources, including additional sources of income and profit, are insufficient to cover the benefit, that amount corresponding to that shortfall need be accumulated as policy reserves. The methods for the stress test and liability adequacy test are stipulated by laws and regulations, but the hazard rate and other factors used in these tests are based on Ministry of Finance Official Notification No. 231. Liability adequacy test assumptions are based on Financial Supervisory Agency, Ministry of Finance Official Notification No. 22.

Stress Test and Liability Adequacy Test ResultsThe stress test and liability adequacy test results as of March 31, 2015, are given below.

Accumulating Policy Reserves for Third-Sector Insurance

Stress test (accumulated contingency reserve) ¥16 million

Liability adequacy test (accumulated premium reserve) Not insufficient

Note: Policy reserves are segmented into accumulated premium reserve, prepaid insurance premiums and contingency reserves.


Personal Information Protection and Information Security

Initiatives to Protect Personal InformationSony Life’s Information Security Policies is a document outlining the Company’s stance with respect to personal information, centering on its customers. Based on these policies, we seek to ensure proper management, usage and protection of information. Following the enactment of the Law Concerning the Protection of Personal Information, we established Regulations on the Protection of Personal Information defining appropriate actions with regard to personal infor-mation. We also conduct internal information security train-ing to ensure thorough efforts to preserve the protection of customers’ personal information and preserve privacy. The Company will strive more rigorously than ever to protect all personal information in its possession.

Information Management SystemSony Life has appointed information managers and security administrators to each department that handles personal information. We have also created a flow of operations that ensures effective protection of personal information and upgrade regularly our training system for employees. In addition, we have established the Protection of Personal Information Promotion Committee as a sub-committee to the Executive Committee to consider and implement information security promotion measures.

Amid rapid innovations in information technology in recent years, computer networks have become more advanced and complex, while services are growing more diversified. Companies can now use sophisticated networks to store and handle important data. Protecting private information is thus becoming more important than ever. To enhance convenience for customers, Sony Life uses networks as part of its policy of delivering the most advanced services. To conduct their business properly, life insurance companies need confidential information about their individual customers. The Company places high priority on effectively managing customer information and implementing measures to ensure information security.

Protecting Personal Information

Note: For details, refer to the website of Life Insurance Association of Japan (http://www.seiho.or.jp/english/) or Sony Life (http://www.sonylife.co.jp/) (Japanese only).

Providing Information to Reinsurance CompaniesAs part of its reinsurance contracts, Sony Life provides personal

information on its policyholders to reinsurers. This information may

also be as part of reinsurance payment invoicing procedures.

Reinsurance is a process whereby insurance companies share a

portion of the risk of the policies they underwrite with other insurance

companies. This procedure allows the diversification of risk inherent to

insurance underwriting.

Sony Life’s statements of important notes to policy agreements and

documents related to the provision of protection explain that such

information may be provided to reinsurance companies. Customers

agree to this condition when signing insurance agreements.

Policy Content Registration and Reference SystemsSony Life and other life insurers share policy and other information

pertaining to policy underwriting decisions, as well as information

related to decisions on claims and other payments.

When it receives insurance and other benefit claims, Sony Life

must register with the Life Insurance Association of Japan certain

information regarding the policyholder or insured party, as well as

information about the policy.

When an application is made by one insurer, information registered

with the Life Insurance Association of Japan may be provided to other

life insurers. Life insurers refer to this information to make decisions on

underwriting, as well as on policy claim and other payments.

This information, which is maintained for all life insurance compa-

nies, is used for no purpose other than undertaking insurance policies

and referring to the payment of claims and other benefits on policies

to which life insurance companies are party. Furthermore, life insur-

ance companies do not provide that information to any other parties.

Payment Screening Inquiry SystemSony Life and other life insurers share certain information related to

insured parties and policies for reference when making payment

decisions. This information is used for mutual reference items involving

insurance policies.

When a request for the payments of insurance or other benefits is

received, and an insured event is determined to have occurred, some

or all consultation items are shared among other life insurers via the

Life Insurance Association of Japan. Based on this sharing of informa-

tion, other life insurers may use payment and other decisions for refer-

ence, but information is used for no other purpose. Furthermore,

information that is provided under this system is not disclosed in any

other way.

System for Protecting Personal Information

LifeplannerSales Group

agency offices

Information Manager(Agency Manager)

Security Administrator

Independent AgencySales Group

sales divisions

Information Manager(Sales General Manager)Security Administrator

Headquartersdivisions

Information Manager(General Manager)

Security Administrator

Board of Directors

Executive Committee

Protection of Personal Information Promotion Committee


Sony Life makes every effort to protect the personal information of its customers. Our privacy policy outlines our compliance efforts.

Note: The information above is excerpted and summarized from Sony Life’s Privacy Policy. Please see http://www.sonylife.co.jp (Japanese only) for the full transcript of our privacy policy and the details of our personal information procedures.

1. ComplianceIn handling personal information, Sony Life will comply with the applicable laws and regulations including the “Act on the Protection of Personal Information” and obligations under the applicable ministerial guidelines and this privacy policy.

2. Purpose of Using Personal InformationSony Life will acquire and use customers’ personal information only for the purposes described below. (1) To underwrite various types of insurance policies, to sustain

and manage beneficiaries of insurance policies, and to pay claims and other benefits

(2) To enable Sony Life and its affiliated and related companies to introduce, provide and maintain various products and services

(3) To enable the provision of information, manage operations related to Sony Life, and to enhance its products and services

(4) For other business related or ancillary to insurance

3. Obtaining Personal InformationSony Life will endeavor to clearly notify customers about necessary information, such as purpose(s) of use, names of user(s) as well as contact details and to obtain consent when asking for personal information. Sony Life may record in writing or in voice the contents of transactions and inquiries.

4. Handling Sensitive InformationSony Life will, to ensure the appropriateness of its operations, with customer consent and within the necessary scope of opera-tional necessity, acquire and use information on the customer’s state of health or physical disorder, past medical records and other sensitive information.

5. Personal Information on Customers Under 15 Years OldSony Life will take special consideration in handling the personal information of customers under 15 years of age to provide clear advance notice asking such a customer to provide personal information only upon a guardian’s consent.

6. Security Control MeasuresSony Life will endeavor to maintain entrusted personal information that is accurate and updated to the extent necessary for the purpose(s) of its use. Sony Life will take necessary and appro-priate security control measures in line with existing technical standards and will implement corrective actions as needed to protect entrusted personal information from unauthorized access, leakage, modification, loss or destruction.

7. Supervision of SubcontractorsSony Life may subcontract the processing of entrusted personal information to a third party within the scope necessary for the achievement of the purpose(s) of use. Such third party will be selected after confirming sufficient level of information security, and Sony Life will exercise necessary and adequate supervision to the party by such means as making contracts.

8. Provision to Third PartiesWithout the consent of the individual, Sony Life will not provide personal information to any third party, except for cases permitted under the related laws and regulations. Sony Life will not provide personal Information to any third party, based on the “Opt-Out System” (Article 23.2 of the Act on the Protection of Personal Information).

9. Responding to Opinions and ConsultationSony Life will, based on the provisions of the related laws and regulations, properly respond to comments and requests from the individual regarding the handling of personal information such as to disclose, correct, stop receiving further product or service information from Sony Life, or to delete personal information on their own.

10. Continuous Improvement of Internal SystemsSony Life has received certification under the ISO 27001 international standard of information security management systems for its administrative departments. Going forward, the Company will continue to strengthen and improve its internal systems.

11. Authorized Personal Information Protective AssociationSony Life is a member of the Life Insurance Association of Japan, an authorized personal information protective association. This association accepts complaints and consults with individuals regarding the handling of personal information by their mem-ber companies. For details, please refer to the Life Insurance Association of Japan’s website: http://www.seiho.or.jp/english/

Sony Life Insurance Co., Ltd., retains personal information about its customers as part of its efforts to provide excellent products and services. Sony Life considers maintaining this information an important responsibility. Accordingly, the Company manages this information carefully, and uses the information only in line with customers’ wishes. The declaration below outlines some of Sony Life’s thoroughgoing efforts to maintain its customers’ personal information.

Privacy Policy

Security Measures for Protecting Personal Information Standards for Security Control Measures of Personal

InformationSony Life has established standards for security control measures of personal information at each stage, including the gathering, use, storage and disposal of this information. The Company thoroughly trains all executives and employees, including temporary staff, on these standards. Measures to Counter the Theft of Notebook Personal

Computers (PCs) and Other PropertyTo prevent notebook PCs containing personal customer information from being stolen in a car break-in or other type

of theft, employees who take these PCs outside the Company are required to keep them nearby at all times. Customer data that is copied onto electronic storage media is protected with a special electronic encryption key. Office Security Measures Only authorized employees are allowed access to office areas where personal information is handled, and coun-terfeit-resistant IC cards are used to monitor entries and exits. As a further countermeasure, the Company restricts personal items that can be brought into administrative departments, which handle large amounts of personal customer information.

Privacy Policy


IS 517456 / ISO 27001

First Company in Industry to Obtain Information Security Management System (ISMS) CertificationOn June 27, 2003, Sony Life became the first company in Japan’s life insurance industry to obtain BS7799–Part 2 and ISMS certifications. The certifications were bestowed on the Company’s administrative departments. As BS7799–Part 2 certification content was adopted by ISO certifications and Japanese ISMS standards were enhanced on a par with ISO standards, on June 22, 2006, we shifted our certification to ISO/IEC 27001 (JIS Q 27001). Going forward, we will continue to maintain and improve our information security systems and upgrade protection of our information assets, including the personal information of our customers.

Information Security Initiatives

Maintaining and Improving Information SecurityOur administrative departments constantly assess the danger of leaks and falsification affecting all of our informa-tion assets, including customer information, and formulate and take measures designed to minimize such dangers. To earn certification, we implemented those measures on schedule, regularly confirmed that the measures had the desired effect and built and operate frameworks for enforcing all of the improvements required for certification.

Main Initiatives Ensure understanding among all employees, including

temporary staff, about the importance of the Company’s information security policies and provide training to ensure widespread acceptance of such policies.

Assess the dangers of leakage and falsification of all information assets and take measures to minimize such dangers.

Information Security Management System

ISMS indicates an operating system that determines the appropriate level of security based on risk self-assessments, and that has con-crete plans and resources allocated to ensure its effective manage-ment. The principal concept of ISMS is for a company to maintain and improve the secrecy, completeness and accessibility of its information assets in a well-balanced manner. Secrecy: The guarantee that information can only be

accessed by authorized people Completeness: The guarantee that information and information-

processing methods are accurate and complete Accessibility: The guarantee that authorized people can have

access to required information and related assets when needed

ISMS Cycle

ISMS targets improvements in information security through repeated implementation of the cycle described below: Plan: Formulate specific information security response plans and

policies Do: Implement measures outlined in the security plans Check: Monitor the results of implementation Act: Undertake regular reassessments and improvements

Plan

Ongoingimprovements

Check

DoAct


Sony Life has established the Compliance Committee, which reports to the Executive Committee and is chaired by the president. This committee is tasked with fostering a compliance-focused corporate culture at Sony Life and contributing to its public nature as a life insurance company by putting compliance into practice. We have also created the Compliance Division to integrate company wide compli-ance programs and draft measures needed to address individual issues and conduct operations. In addition, we maintain an effective compliance structure through the assignment of compliance supervisors who conduct routine checks of legal compliance in each division and establish appropriate systems as well as compliance officers who offer advice on these systems and track implementation status. We also have established the Market Conduct Compliance (MCC) Committee to strengthen the compli-ance of sales activities. Based on Sony Life’s policy on marketing activities, the MCC Committee deliberates and makes decisions to ensure that Sony Life fulfills its social responsibilities and public mission, achieving these aims by thoroughly managing solicitation and internal activities in line with sales operations that follow appropriate market conduct and compliance. The Business Administration Control Division serves as a planning department to ensure the thoroughness of internal management, particularly solicitation management. This division drafts measures to confirm the status of solicitation and internal management and expand these activities, conducting and promoting these efforts in cooperation with related departments.

Compliance

To fulfill our social responsibilities and public mission as a life insurance company, we have formulated a Compliance Declaration (outlining our basic stance on compliance) and Sony Life’s Code of Conduct.

Compliance Declaration (Basic Stance on Compliance)This declaration defines our basic stance for ensuring appropriate compliance. In addition to laws and regula-tions, this declaration defines Sony Life’s respect of social mores, management philosophy, code of conduct and objective of being a world leader in quality.

Sony Life’s Code of ConductThis charter sets forth basic principles to be respected by all executives and employees, ensuring the fairness of its operations as a life insurance company. Below are some excerpts.

We believe compliance means conformity with relevant laws and regulations and conducting business ethically and in good faith. This is one of the most crucial issues for companies seeking to fulfill their social responsibilities. Life insurance compa-nies need to reinforce their compliance systems to maintain the long-term trust of customers. Sony Life has positioned compliance as a central management priority to protect customers and earn their confidence.

Compliance Structure Basic Stance on Compliance and Code of Conduct

Basic Principles Compliance with laws and regulations, internal policies and regulations, business operations conducted ethically and in good faith; appropri-ate risk management, customer-first orientation, internal reporting, eschewing relations with anti-social forces, etc.

Respect for Human Rights

Equal-opportunity employment, working environment, etc.

Business Operations Conducted Fairly and in Good Faith

Products and services that provide peace of mind, environmental conservation, disclosure of corporate information, personal information protection, etc.

Ethical Conduct Prevention of insider trading, conflicts of interest, etc.

Each fiscal year, we formulate a compliance program containing specific action plans for achieving compliance. We also create a Compliance Manual as a reference for realizing compliance, and distribute the document to all executives and employees. Furthermore, Sony Life creates and distributes to all sales employees a compliance- oriented manual specific to their tasks.

Board of Directors

Executive Committee

Compliance Committee(Secretariat: Compliance Division)

Market Conduct Compliance (MCC) Committee(Secretariat: Business Administration Control Division)

LifeplannerSales Group

agency offices

Independent AgencySales Group

sales divisions

Headquarters divisions

Compliance Officers


Note: The MCC Guidelines (policy on marketing activities) are based on Sony Life’s Solicitation Policy, which is compliant with the Law on Sales of Financial Products.

Our Stance toward All Customers1. As Professionals As life insurance professionals, we provide thoroughly

high-quality service that includes compliance with laws and regulations, broad-ranging expertise that covers economics, finance, taxation and other topics, honing our skills on a daily basis.

2. Protection of privacy Our actions take customer privacy into careful

consideration, and we handle customers’ personal information in strict accordance with laws, regulations and internal rules.

3. Visits and communications When visiting or telephoning customers, we take pains to

avoid inconveniencing them in their work or private lives. Unless with their consent, we do not visit or initiate com-munications with customers early in the morning or late at night.

For Customers Considering Policies4. Confirming appropriateness When marketing variable life insurance, variable individual

annuities or other products that involve risk to the cus-tomer, we solicit such products only after confirming the purpose of application, the customer’s level of under-standing of and experience with financial products, and financial status, and then propose products that optimally suit the customer.

5. Explaining important items When accepting policy applications, in accordance

with laws and regulations we provide customers with a Contact Overview, Explanation of Important Notes and Explanation of Policy Terms and Conditions, explain the content of this information to ensure that it is understood, including any items that could be disadvantageous to the customer’s interest.

6. Preventing misidentification of financial products We clearly explain life insurance products to avoid their

confusion with non-life insurance products, investment trusts, deposits or other financial products, or with prod-ucts or services provided by third parties. Furthermore, when handling non-life insurance or mortgage loans, we prevent their confusion or misidentification with life insurance products.

7. Handling of notification We endeavor to explain clearly to customers that

maintaining fair policy premiums and the soundness of the insurance system involves the duty of disclosure, and that failure of a customer to completely fulfill this duty can result in policy cancellation or be disadvantageous to the customer’s interest.

8. Customer identification When interviewing a policyholder or insured party, we

confirm their identity as well as their right to apply and the intent of the insured party. Particularly on life insurance agreements for customers who have not reached legal adulthood, we carefully check the purpose of enrollment and policy amount to ensure that sales are appropriate.

For Policyholders9. Responding appropriately to requests We strive to respond to customer requests promptly and

appropriately, providing ongoing follow-up after a policy is concluded and checking, confirming and reviewing the content of coverage.

10. Payment of claims and other items We respond quickly and appropriately to customers’

request for the payment of claims, benefits and other items. Furthermore, we take customers’ situations and policy content into consideration when responding to inquiries about decision on whether to pay claims, benefits and other items, as well as their amounts.

Sony Life conducts market compliance steadily in accordance with these guidelines, ensuring that each customer receives appropriate consulting-based products and services according to their life plan and provides ongoing follow-up services with the aim of delivering financial security throughout the customer’s life. In these ways, we endeavor to fulfill our social responsibilities and public mission as a financial institution.

MCC Guidelines (Policy on Marketing Activities)

The MCC Guidelines outline basic items for attention to protect customers’ interests when Sony Life’s Lifeplanner sales employees and Partners (independent agencies) con-duct marketing activities, including insurance solicitation and maintenance.

Market Conduct Compliance (MCC) Guidelines


of information related to these operations and calls for the establishment of a system to ensure the appropriate supervision of the status of execution of the Company’s business. An outline of Sony Life’s Policy on Managing Conflicts of Interest is provided below.

In accordance with the Insurance Business Law and the Financial Instruments and Exchange Law, the Company has established a Policy on Managing Conflicts of Interest to ensure that transactions by Sony Life Group companies with regard to business by the Company or its subsidiary financial institutions do not cause unjustifiable harm to their customers. The policy outlines the appropriate management

Policy on Managing Conflicts of Interest

1. Sony Life Group Companies Conflicts of interest are managed for the companies indi-

cated below. In the following list, (2) and (3) are subsidiary financial institutions of Sony Life, while (4) and (5) belong to Sony Life’s parent financial institutions.

(1) Sony Life Insurance Co., Ltd. (2) AEGON Sony Life Insurance Co., Ltd. (3) SA Reinsurance Ltd. (4) Sony Assurance Inc. (5) Sony Bank Inc.

2. Transactions involving potential conflicts of interest “Transactions involving potential conflicts of interest” are

transactions among those conducted by Group compa-nies that could involve unjustifiable harm to customers (hereinafter, “Subject Transactions”). “Customers,” as referred to below, refers to customers of the Company or the Company’s subsidiary financial institutions that are the targets of protection by the Company’s conflict of interest management.

3. Types of transactions involving potential conflicts of interest

Subject Transactions are divided into the following types. (1) Transactions that, when customers’ interests and

Group companies’ interests differ, prioritize Group companies’ interests

(2) Transactions that involve the use of customer information to benefit a Group company

(3) Transactions that benefit a Group company by taking advantage of opposing interests among customers

(4) Other transactions with Group companies that are deemed to harm customers’ interests

4. System for managing conflicts of interest To ensure that conflicts of interest are managed appro-

priately, the director in charge of the Compliance Division has been given overall responsibility for managing con-flicts of interest. The Compliance Division, which has overall responsibility for managing conflicts of interest, manages specific Subject Transactions, centrally and independently from other divisions. Subject Transactions are managed using the following methods, other mea-sures that have been selected appropriately, or in some combination of these.

(1) Separating the department conducting the Subject Transactions from the department conducting transactions with the customer (isolating information)

(2) Changing conditions or methods involving Subject Transactions or transactions with the customer (changing conditions or methods)

(3) Discontinuing Subject Transactions or transactions with the customer (discontinuing transactions)

(4) Providing appropriate notice to the customer in the event that Subject Transactions have the potential to harm the customer’s interests (notifying the customer)

5. Recording The division that has the overall responsibility for manag-

ing conflicts of interest records the items indicated below and stores this information for a five-year period.

(1) Records pertaining to specific Subject Transactions (2) Records pertaining to measures to ensure appropriate

customer protection

Overview of Policy on Managing Conflicts of Interest


System Structure establishes a basic group policy for eradicating anti-social forces, as well as for putting in place preventive measures to isolate itself from relationships with anti-social forces. We are strengthening our corporate-wide preparations accordingly.

Management and employees alike are fully aware of the importance, from social responsibility, compliance and corporate defense perspectives, to steer well clear of anti-social forces, and in line with Basic Group Policy on Eradicating Anti-social Forces, drawn up by SFH to guide the entire Sony Financial Group in efforts to eradicate contact with anti-social forces, Sony Life has put in place its own system to preclude relationships with anti-social forces.

We strive, as an organization, to address the problem of anti-social forces, ensure the safety of management and employees who may be approached by such criminal elements, and constantly seek to build closer ties with external specialist agencies to promote better access to pertinent advice and assistance in the event a situation arises. We flatly refuse to entertain inappropriate demands from anti-social forces and will pursue legal options—civil and criminal action—when necessary, disassociate ourselves from any and all connections, including business relationships, and will not in any circumstances conduct backroom deals or provide funds to anti-social forces.

Basic Group Policy on Eradicating Anti-Social Forces

From the perspective of social responsibility and compli-ance, companies are expected to maintain sound business practices with no connection to anti-social forces, and if any sort of inappropriate request is received, it must be flatly refused. Sony Life’s Basic Policy on Internal Control

Basic Group Policy on Eradicating Anti-Social Forces


Environmental Preservation Initiatives

Environmental Management SystemSony Life has mounted a number of initiatives to reduce the burden it places on the environment. We have established environmental goals and objectives, and put programs in place to lead us toward these aims, and will continue with such environmentally conscious activities and initiatives.

ISO 14001 CertificationIn March 2001, Sony Life acquired ISO 14001 certification, the international standard for environmental management systems, for its headquarters, and has since kept its certification up to date.

Environmental PolicyCore Philosophy

Sony Life works toward the realization of a sustainable society in accordance with the Sony Group Environmental Vision. As a member of the Sony Group, we adhere to this vision and make every effort to preserve the environment in all aspects of our operations. Reflecting our role as a life insurer in providing long-term security, in addition to providing economic assurance to policyholders we aim to contribute to a prosperous and stable environment in which to live. Accordingly, we practice environmental protection on an ongoing, everyday basis.

Policy1. We strive to reduce our environmental impact by promoting the recycling of resources and conservation of the

energy that is essential to our business, and work to ensure that all employees maintain a high level of environmental awareness.

2. In the course of our business activities, we conform appropriately with all laws, regulations and other requirements related to environmental protection.

3. We evaluate the environmental impact of our business and the insurance products and services that we provide and set environmental objectives, targets and implementation programs. Through these approaches, aim for ongoing improvements in our environmental preservation activities, as well as preventing pollution.

4. Sony Life ensures that all employees are aware of its environmental policies and environmental preservation activi-ties. Through this awareness, we aim to raise employees’ environmental consciousness from a variety of vantage points, through business and their personal lives.

What is ISO 14001?

ISO 14001 is an international standard for environmental

management systems created by the International

Organization for Standardization (ISO). Certification is given to

entities that review their environmental management systems

annually, take action to address difficult and unprecedented

issues and work continually to improve their environmental

performance.

Green Power

Green power refers to electricity generated from wind, solar,

biomass (such as wood chips) and other renewable energy

sources. In addition to using sustainable resources, no CO2 is

emitted in producing this energy. Even in cases where wood

chips are burned to generate electricity, the CO2 emitted

during combustion is offset by the amount the trees absorb

during maturation, resulting in a net carbon effect of zero.

This certificate verifies Sony Life’s purchase of 250,000 kWh of electricity generated from Noshiro Biomass Power Plant

Fiscal 2014 Green Power Certificate

Sony Life’s Environmental Conservation Activities

Green Power Certification SystemsIn fiscal 2005, Sony Life introduced a green power certifi-cation system for power originating from wind-powered generators. This system facilitates electric-power swaps, certifying the environmental value of green power generation, even if the power originates at locations far from where it is used. Since fiscal 2007, Sony Life has been purchasing certifi-cates for energy generated from wood-chip biomass, rather than wind-powered generation.


Donating to the “Sorabear Foundation”In March 2010, Sony Life began providing customers with CD-ROM versions of policy clauses. For each customer who opts for the CD-ROM, the Company donates a portion of its savings on printing costs to the Sorabear Foundation, a non-profit organization engaged in global warming prevention. The Sorabear Foundation uses the donations from Sony Life to install solar power generation

Environmental Preservation Activities with Customers

Ceremony to commemorate the donation of a Sorabear power

generator at Funao Nursery School in Fukushima Prefecture

The brothers Sora (left) and Bear (right) are the Sorabear

Foundation’s characters. Designer Shinzi Katoh modeled them

on polar bears, which are gradually losing their habitat as the

northern polar cap recedes.

Making New Policy Procedures PaperlessSony Life introduced the C-SAAF follow-up consultation system in fiscal 2012. By eliminating the need for paper in new policy application procedures, this system is helping to reduce our paper consumption. Going forward, we plan to make our policy maintenance procedures paperless, as well.

equipment at nursery schools and preschools throughout Japan. In fiscal 2014, our fourth and fifth such installation went into place at nursery schools in Fukushima and Niigata prefectures. Sony Life will continue to participate in environmental conservation activities and support the Sorabear Smile Project.


Participation in Social Contribution Activities

“One Love, One Trust”

Sony Life’s Social Contribution Activitieshttp://www.sonylife.co.jp/volunteer/ (Japanese only)This site describes our social contribution efforts in an easy-to-understand manner.

The Sony Life Volunteer Club was established by employees at the time of the Great Hanshin/Awaji Earthquake in 1995, and has continued its activities to the present day. The club operates using funds collected from employee donations, and is managed by individual employees.

Results by Region of Principal Sony Life Volunteer Club Activities during the Year

Homepage describing Sony Life’s social contribution activities

• Relay for Life, one location

Chugoku

• Relay for Life, three locationsGreat East Japan Earthquake reconstruction support• Spring festival at Otsuchi-cho• Yamada-cho festival• Summer festival at temporary

housing in Kesennuma• Summer festival at temporary housing

at Midorigaoka/Tomita-cho• Onagawa-cho children’s bus tour• Food preparation at temporary

housing in Rikuzentakata• Year-end soba noodles at temporary

housing in Kesennuma

Tohoku

• Relay for Life, eight locations• J-League Sign Language Support• Kobo Aijien/Shunko Gakuen barbecue• Social event at St. Francis children’s

dormitory • Yokohama Tennis Competition for People

with Disabilities

Kanto

• Relay for Life, four locations

Tokai

• Relay for Life, four locations• Support for Matsuyama care

facilities

Shikoku• Relay for Life, five locations• Oita International Wheelchair

Marathon• Special Olympics Nippon

National Summer Games in Fukuoka

Kyushu

Sony Life Volunteer Club

• Relay for Life, one location

Hokkaido

• Relay for Life, two locations

Koshinetsu/Hokuriku

• Relay for Life, four locations• Child Chemo House Charity Walk• Blind tennisEmotional support for victims of the Great Hanshin/Awaji Earthquake• Kobe Fureai spring festival• Kobe Fureai hot springs bus tour

Kinki

Our rallying cry is the phrase “one love, one trust,” reminding us that for each vol-untary contribution, or “act of love,” our standing within the community increases. As part of our efforts to be a good corporate citizen, we encourage each Sony Life employee to be active in his or her social contribution efforts, which we believe are instrumental in expanding the circle of love and trust.


Volunteer Day ActivitiesSony Life designates a day on or around August 10, the anniversary of its establishment, as Volunteer Day. It is a special day when employees are encouraged to take a social moment to think about and actively participate in pursuits that benefit their communities and society in general. At the headquarters, we hold various events, including an area cleanup and a blood drive.

A cleanup volunteer

Ongoing Support for Earthquake VictimsSony Life volunteers provide wide-ranging support for earthquake victims, centering on support for the senior citizens who were affected by the Great Hanshin/Awaji Earthquake. At the time of the disaster, employee volun-teers provided meals for earthquake victims. Afterward, they provided other types of support as needed, depend-ing on when victims stayed in temporary housing or moved to dwellings built for reconstruction. Now more than 20 years on, Sony Life volunteers continue to support these earthquake victims by planning and inviting them to bus tours to visit hot springs and holding spring festivals and Christmas parties to deepen relationships.

Kobe Fureai spring festival

Relay for LifeIn the Relay for Life, cancer patients and their families, as well as bereaved families, participate in a 24-hour track relay. Funds generated through the relay are donated to charity. Such relays are held at more than 5,000 locations in 20 countries. In fiscal 2014, more than 2,300 people took part in the relay, mainly agency office employees at 32 locations throughout Japan, as well as family members and cus-tomers. They ran and walked throughout the relay’s 24-hour duration with current cancer patients and their families, while conducting volunteer activities to support the event. Sony Life will proactively support these activities, as part of its efforts to realize a harmonious society that is free from worries of cancer.

Children participating in a beach cleanup and barbecue

Youth Educational SupportWe conduct a number of activities around Japan to sup-port the children to whom we entrust the future. For exam-ple, each year the club plans beach and pool trips and barbecues for the children who for a variety of reasons are unable to live with their parents. Activities such as these, held in different parts of Japan, give children who otherwise have little opportunity to interact with adults a chance to participate in society. As a result, we have seen these children become increasingly cheerful and develop a more optimistic outlook.

Employees participating in the 24-hour Relay for Life


Reconstruction Support CouncilJust after the Great East Japan Earthquake, the Sony Life Volunteer Club, MRDT Sony, JAIFA All Sony and Sony Life joined to form the Reconstruction Support Council. Employee donations fund the council’s activities, which are undertaken by individual employees.

Principal Volunteer Activities Aimed at Providing Support for the Areas Affected by the Great East Japan Earthquake

Providing Support for People with DisabilitiesEach year, Sony Life employee volunteers in surrounding areas provide operational support for the Oita International Wheelchair Marathon. Employees provide start-to-finish support for the event, from initial preparations through to cleanups. Participating in events and competitions alongside people with disabilities gives people without disabilities a chance to join in the fun, as well as providing opportunities for interaction. To this end, volunteers participate in the J-League Sign Language Support and Yokohama Tennis Competition for People with Disabilities.

• Volunteering to Prepare Meals We have continued to prepare meals on a voluntary basis since May 2011. Volunteers also clean windows at temporary housing locations and distribute message-bearing cards from employees.

Distributing planters

• Distributing Planters with FlowersVolunteers distributed flower-filled planters including support messages from Sony Life agency offices and headquarters to temporary housing locations.

• Volunteering for Summer FestivalsSince July 2011, every year employees have voluntarily taken part in the summer festivals. Participation during these events ranges from Sony Group employees manning food stalls to concerts by the Sony Brass Band, hula dances by local hula girls, and massage services offered by Sony Life employees called “health keepers,” who have technical qualifications.

Preparing mealsSummer festival

Cleaning windows

Providing Support in the Area Affected by the Great East Japan Earthquake

Yokohama Tennis Competition for People with Disabilities


Employee volunteers setting up at the Games site

High-five welcome for athletes from employee volunteers

Seeing-eye dogs learning to wait at their masters’ feet.

Dogs trained to assist the sight-impaired travel by train and bus

Support Activities for Special Olympics NipponSony Life believes that it contributes to society and pro-motes diversity each time it helps a single person with intellectual disabilities gain independence and participate in society. Our support of Special Olympics Nippon is based on this conviction. Approximately 700 Sony Life employees volunteered at the 6th Special Olympics Nippon National Summer Games in Fukuoka Prefecture in 2014. Our employee volunteers are planning to partici-pate at the 6th Special Olympics Nippon National Winter Games in Niigata Prefecture in February 2016, as well, expanding our sphere of support all the time. In addition to competitions such as these, volunteers are active in helping to establish regional organizations and serving as coaches during daily sports training sessions.

Special Olympics Nippon http://www.son.or.jp/ (Japanese only)

Special Olympics is a global, sports-oriented organization

that provides people with intellectual disabilities routine

access to sports training throughout the year and holds

competitions where athletes can demonstrate the results of

their training. In Japan, the public-interest foundation Special

Olympics Nippon runs these activities as the domestic arm

of the international organization.

Eye Mate, Inc. http://www.eyemate.org/ (Japanese only)

Since its introduction of the first seeing-eye dogs to Japan,

this organization has been responsible for training numerous

seeing-eye dogs. The assistance of formally trained Eye

Mate seeing-eye dogs helps people with visual impairment

participate in society by enabling them to walk about on

their own.

Eye Mate FundSony Life contributes to the Eye Mate Fund with the aim of helping visually challenged people participate in society. The Company donates an amount each year that matches the total raised by employees during the year. In fiscal 2014, ¥12.41 million in employee donations and matching funds was given to Eye Mate, Inc. This figure brings cumulative donations to Eye Mate to ¥183.78 million (¥204.10 million including other organizations), making Sony Life one of the largest among corporate and other organizations.

Regional and Community Contributions


An exciting match unfolds before spectators’ eyes

An athlete races to return the ball

Sony Life Cup All Japan Ladies Tennis TournamentSince 2002, Sony Life has sponsored and supported the Sony Life Cup All Japan Ladies Tennis Tournament, one of the largest amateur events for women tennis players in Japan. The tournament has been held since 1979 to promote the development of tennis as a sport with mass appeal that also helps improve women’s health. This year marks the 37th staging of this traditional event, which has attracted a cumulative total of more than 380,000 players. At tournament qualifiers held in each prefecture, Sony Life employees, including Lifeplanner sales employees, participate in a variety of activities that support the tournament. By supporting this tournament, Sony Life helps people to realize their dreams and forge stronger interpersonal ties.

Promoting Better Health

Contributing to Arts and CultureIntroduction of Paralym ArtSony Life helps people with physical and mental challenges overcome their obstacles by displaying Paralym Art, which is created by people with disabilities. Part of the contract fees received for allowing the art to be placed on display go to the individual artists. We have two Paralym Art works on display at our headquarters, as well as at each of the 80 lodging rooms at Academy Forest, a training facility.

Painter and her family with the members of our Social Contributions Department.

Website: http://www.zenkokuladies.jp/ (Japanese only)

Facebook page: http://www.facebook.com/zenkokuladiestennis (Japanese only)


Life Planning Courses by Lifeplanner Sales EmployeesSince fiscal 2005, Sony Life has offered life planning courses for students who are preparing to make their own way in society. Lifeplanner sales employees, who serve as instructors, emphasize the importance of having dreams for the future.

Life Planning Course ObjectivesTo provide the protection products that optimally match customers’ lives, when proposing such products Sony Life first asks customers about their dreams and future goals. Based on this information, we work with each customer to map out a specific life plan, emphasizing the importance of “life planning.” Through the process of life planning, we aim to convey the importance of planning their lives and persevering to achieve their dreams to students who have long lives in front of them.

Monetary Simulations to Help Students Plan Their Lives as They Spread Their WingsAs life planning professionals, Lifeplanner sales employees instruct and support students in the life planning process. The simulation begins with a family. The overall life plan covers the arrival of children and the creation of an educa-tion plan as well as a plan for the purchase of a home, and lays out approaches to achieve the kind of future the stu-dents envision down the road and the dreams that they aspire to. Next, the course takes on an economic focus, looking at the financial resources that are needed. Lifeplanner sales

Contributing to the growth of students and youth

Consulting by Lifeplanner sales employees to help realize those dreams

Students dreaming up their futures as they participate in life planning

employees offer advice, using Sony Life’s proprietary software, LiPSS (see pages 32–33). Consulting from an economic perspective, we examine the income, expenses and savings that will be needed. This realistic approach gives students a better understanding of what is needed to achieve their goals and dreams.

As of July 1, 2015, Sony Life had held life planning courses at 764 schools throughout Japan.(Schools)

Private Public TotalJunior High Schools 25 129 154High Schools 131 380 511Junior Colleges and Vocational Schools 30 1 31Universities 48 5 53Others 7 8 15Total 241 523 764

(Schools)Activities by Fiscal Year Schools (Continuing)

FY2006 3 —FY2007 21 3FY2008 56 9FY2009 97 31FY2010 100 31FY2011 93 56FY2012 100 54FY2013 134 67FY2014 143 75FY2015 (As of July 1) 17 7

Schools 764Students attending Approx. 74,700

As of July 1, 2015

Life Planning Courses to Date


Sony Life Recognized as a “Company That Actively Supports the Children Responsible for Future Generations”Since its establishment, Sony Life’s internal systems exceed legal provisions for encouraging employees to continue working while raising children, and the Company is recognized as a “Company that Actively Supports the Children Responsible for Future Generations.” We will continue our proactive efforts to create an environment that supports healthy childbirth and child-raising by creat-ing an environment in which parents can balance work and raising children.

Recruiting and Effectively Employing People with DisabilitiesSony Life takes a proactive approach toward increasing the number of people with disabilities among its employees, deploying them in each of its departments. Among examples of particular note, since fiscal 1996 we have regularly employed people with disabilities in our inter-nal health room (massage room), and we recruit people with visual disabilities to technical positions.

Volunteer Leave ProgramIn fiscal 2003, Sony Life introduced a volunteer leave program, designed to facilitate the efforts of employees to participate actively in volunteer activities and to take active part in such activities during weekdays.

Leave Program for Bone Marrow DonorsIn fiscal 2002, Sony Life became the first life insurance company to introduce a special leave program for bone marrow donors, offering employees compensated time off,

Activities covered by the program:

Social welfare Disaster relief

Environmental protection International exchange and aid

Community activities

separate from their regular holidays, for the period necessary to donate bone marrow for transplants.

Fostering Pleasant Workplaces

As of March 31, 2015, 29 people with visual disabilities were employed in 16 locations throughout Japan, also contributing to employee health through their massage services.

Sony Life’s Child-Oriented Activities (Overview)

1. Child-rearing leave period extended

to three years

2. Partially paid time off for

child-rearing leave

3. Introduction of system of shorter working hours

(until child enters third year of elementary school)

4. Exemption from overtime working hours

(until child enters third year of elementary school)

5. Added more flexible working styles for employees

raising children

6. Expansion of the scope of use of accumulated leave for

child-raising or nursing care

7. Time off to nurse children (paid leave)

8. Support of care by babysitter

9. Introduction of a work-life balance day

(no-overtime day)

10. Introduction of a work-at-home system


063Sony Life Insurance Co., Ltd. Annual Report 2015 063Sony Life Insurance Co., Ltd. Annual Report 2015

Sony Life Financial Data (Non-consolidated)

064 Balance Sheets066 Statements of Income069 Statements of Changes in Net Assets071 Statements of Cash Flows072 1. Loans by Borrower Category072 2. Risk-monitored Loans072 3. Accounting Indicators077 4. Reconciliation to Core Profit and

Non-consolidated Ordinary Profit079 5. Fair Value Information on Securities

(General Account)084 6. Fair Value Information on Securities

(Company Total)

Sony Life Performance Indicators (Non-consolidated)

091 1. Key Performance Indicators for Past Five Years092 2. Key Performance Indicators099 3. Indicators for Insurance Policies100 4. Indicators Related to Asset Management

(General Account)108 5. Status of Insurance Claims Paying Ability109 6. Balance of Separate Account Assets109 7. Status of Individual Variable Life Insurance and

Individual Variable Annuities110 8. Number of Agencies110 9. Number of Employees and Recruits111 10. Average Salary

Financial Data


Sony Life

Financial Data (Non-consolidated)

Balance SheetsSony Life Insurance Co., Ltd.As of March 31, 2014 and 2015

(Millions of yen, %)

2014 2015Amount Composition Amount Composition

Assets:

　Cash and deposits ¥ 15,827 0.2% ¥ 16,535 0.2%

　　Cash 4 1

　　Deposits 15,823 16,534

　Call loans 34,628 0.5 71,234 1.0

　Monetary trusts 305,346 4.6 313,276 4.3

　Securities 5,954,716 89.9 6,543,703 89.6

　　Japanese government bonds 5,316,110 5,742,140

　　Japanese municipal bonds 3,869 2,060

　　Japanese corporate bonds 38,746 28,664

　　Japanese stocks 70,442 92,564

　　Foreign securities 342,187 451,613

　　Other securities 183,359 226,659

　Loans 154,219 2.3 162,399 2.2

　　Policy loans 154,180 162,397

　　Commercial loans 38 2

　Tangible fixed assets 67,100 1.0 118,232 1.6

　　Land 30,103 83,007

　　Buildings 36,429 34,757

　　Leased assets 19 15

　　Other tangible fixed assets 548 452

　Intangible fixed assets 23,869 0.4 21,590 0.3

　　Software 23,859 21,580

　　Other intangible fixed assets 9 9

　Due from reinsurers 138 0.0 181 0.0

　Other assets 53,787 0.8 58,521 0.8

　　Other receivables 30,954 33,791

　　Prepaid expenses 1,532 1,220

　　Accrued income 16,600 17,059

　　Money on deposits 4,182 4,061

　　Initial margins of futures markets ̶ 813

　　Variation margins of futures markets ̶ 867

　　Derivatives ̶ 248

　　Advance payments 400 373

　　Others 117 85

　Prepaid pension costs 1,867 0.0 2,295 0.0

　Deferred tax assets 13,643 0.2 ̶ ̶

　Reserve for possible loan losses (242) (0.0) (268) (0.0)

　Reserve for investment losses ̶ ̶ (6,352) (0.1)

Total Assets ¥6,624,903 100.0% ¥7,301,350 100.0%




2014 2015Amount Composition Amount Composition

Liabilities:

　Policy reserves and others ¥6,152,574 92.9% ¥6,756,882 92.5%

　　Reserve for outstanding claims 24,702 25,449

　　Policy reserves 6,123,633 6,727,241

　　Reserve for policyholders’ dividends 4,237 4,191

　Due to agencies 2,169 0.0 2,450 0.0

　Due to reinsurers 567 0.0 585 0.0

　Other liabilities 32,812 0.5 45,619 0.6

　　Accrued income tax 8,702 16,742

　　Other payables 1,213 1,412

　　Accrued expenses 13,566 15,399

　　Unearned income 939 953

　　Deposits received 823 1,783

　　Deposits received for guarantee 5,058 5,076

　　Derivative liabilities ̶ 728

　　Lease obligations 21 16

　　Asset retirement obligations 654 665

　　Policy suspense and other suspense 1,832 2,842

　Reserve for employees’ retirement benefits 25,389 0.4 19,725 0.3

　Reserve for directors’ retirement benefits 66 0.0 91 0.0

　Reserve for price fluctuations 41,556 0.6 42,845 0.6

　　Reserve for price fluctuations 41,556 42,845

　Deferred tax liabilities ̶ ̶ 120 0.0

　Deferred tax liabilities on land revaluation 536 0.0 503 0.0

　Total Liabilities 6,255,673 94.4 6,868,824 94.1

Net Assets:

　Common stock 70,000 1.1 70,000 1.0

　Capital surplus 5,865 0.1 5,865 0.1

　　Capital reserve 5,865 5,865

　Retained earnings 211,461 3.2 240,028 3.3

　　Earned reserve 18,138 22,128

　　Other retained earnings 193,323 217,900

　　　Unappropriated retained earnings 193,323 217,900

　Total shareholders’ equity 287,327 4.3 315,893 4.3

　Net unrealized gains (losses) on other securities, net of taxes 83,416 1.3 118,113 1.6

　Land revaluation, net of taxes (1,513) (0.0) (1,480) (0.0)

　Total valuation and translation adjustments 81,903 1.2 116,632 1.6

　Total Net Assets 369,230 5.6 432,526 5.9

Total Liabilities and Net Assets ¥6,624,903 100.0% ¥7,301,350 100.0%



Statements of IncomeSony Life Insurance Co., Ltd.For the years ended March 31, 2014 and 2015

(Millions of yen)

2014 2015

Ordinary Revenues ¥1,197,109 ¥1,223,827

　Income from insurance premiums 960,986 914,034

　　Insurance premiums 959,660 912,497

　　Ceded reinsurance commissions 1,325 1,537

　Investment income 212,323 280,148

　　Interest income and dividends 122,160 133,592

　　　Interest income from deposits 0 0

　　　Interest income and dividends from securities 106,187 117,276

　　　Interest income from loans 5,691 5,921

　　　Rent revenue from real estate 10,250 10,327

　　　Other interest income and dividends 31 66

　　Income from monetary trusts, net 5,311 5,283

　　Gains on trading securities ̶ 507

　　Gains on sale of securities 773 8,899

　　Gains on redemption of securities 2 1

　　Gains on derivatives, net 172 ̶　　Foreign exchange gains, net 1,183 5,068

　　Other investment income 47 7

　　Gains on separate accounts, net 82,670 126,789

　Other ordinary income 23,799 29,644

　　Income for annuity riders 2,151 3,617

　　Income for deferred payment of claims 17,197 22,154

　　Other ordinary income 4,451 3,872

(Continued on next page)



(Millions of yen)

2014 2015

Ordinary Expenses ¥1,127,904 ¥1,144,162

　Insurance claims and other payments 327,257 382,902

　　Insurance claims 77,413 79,622

　　Annuity payments 10,768 11,280

　　Insurance benefits 55,510 63,166

　　Surrender payments 178,402 223,130

　　Refund to policyholders 3,203 3,675

　　Reinsurance premiums 1,959 2,027

　Provision for policy reserves and others 650,764 604,357

　　Provision for reserve for outstanding claims 55 746

　　Provision for policy reserves 650,703 603,607

　　Interest on policyholders’ dividend reserve 5 3

　Investment expenses 8,506 9,727

　　Interest expenses 48 31

　　Losses on sale of securities 528 0

　　Losses on redemption of securities ̶ 0

　　Losses on derivatives, net ̶ 2,099

　　Provision for reserve for possible loan losses 6 32

　　Depreciation of real estate for rent and others 2,077 1,931

　　Other investment expenses 5,845 5,630

　Operating expenses 113,868 115,603

　Other ordinary expenses 27,507 31,571

　　Payments of deferred claims 10,884 12,184

　　Taxes 7,981 10,571

　　Depreciation and amortization 5,064 5,267

　　Provision for reserve for employees’ retirement benefits 3,532 3,523

　　Provision for reserve for directors’ retirement benefits ̶ 24

　　Others 44 0

Ordinary Profit 69,205 79,665




(Millions of yen)

2014 2015

Extraordinary Losses ¥ 9,389 ¥ 7,683

　　Losses on disposal of fixed assets 41 31

　　Impairment losses 36 10

　　Provision for reserve for price fluctuations 9,291 1,288

　　　Provision for reserve for price fluctuations 9,291 1,288

　　Provision for reserve for investment losses ̶ 6,352

　　Others 19 ̶

Provision for Reserve for Policyholders’ Dividends 2,232 2,153

Income Before Income Taxes 57,583 69,828

Income Taxes̶Current 21,953 27,055

Income Taxes̶Deferred (1,433) 247

Total Income Taxes 20,519 27,303

Net Income ¥37,063 ¥42,524

Statements of Income (Continued)



Statements of Changes in Net AssetsSony Life Insurance Co., Ltd.For the years ended March 31, 2014 and 2015

(Millions of yen)

2014Shareholders’ Equity

Common stock

Capital surplus Retained earnings

Total shareholders’

equityCapital reserve

Total capital surplus

Earned reserve

Other retained earnings

Total retained earnings

Unappropri-ated retained

earnings

Balance at the beginning of the period ¥70,000 ¥5,865 ¥5,865 ¥15,478 ¥172,219 ¥187,698 ¥263,563

Changes during the period　Dividends from surplus ̶ ̶ ̶ 2,660 (15,960) (13,300) (13,300)　Net income ̶ ̶ ̶ ̶ 37,063 37,063 37,063　Net changes of items other than 　 shareholders’ equity ̶ ̶ ̶ ̶ ̶ ̶ ̶

Total changes during the period ̶ ̶ ̶ 2,660 21,103 23,763 23,763

Balance at the end of the period ¥70,000 ¥5,865 ¥5,865 ¥18,138 ¥193,323 ¥211,461 ¥287,327

(Millions of yen)

2014Valuation and Translation Adjustments

Total Net Assets

Net unrealized gains (losses)

on other securities,

net of taxes

Land revaluation, net of taxes

Total valuation and

translation adjustments

Balance at the beginning of the period ¥80,283 ¥(1,513) ¥78,769 ¥342,333

Changes during the period　Dividends from surplus ̶ ̶ ̶ (13,300)　Net income ̶ ̶ ̶ 37,063　Net changes of items other than shareholders’ equity 3,133 ̶ 3,133 3,133

Total changes during the period 3,133 ̶ 3,133 26,897

Balance at the end of the period ¥83,416 ¥(1,513) ¥81,903 ¥369,230




(Millions of yen)

2015Shareholders’ Equity

Common stock

Capital surplus Retained earnings

Total shareholders’

equityCapital reserve

Total capital surplus

Earned reserve

Other retained earnings

Total retained earnings

Unappropri-ated retained

earnings

Balance at the beginning of the period ¥70,000 ¥5,865 ¥5,865 ¥18,138 ¥193,323 ¥211,461 ¥287,327

　Cumulative effects of changes in 　 accounting policies ̶ ̶ ̶ ̶ 5,991 5,991 5,991

Restated balance at the beginning of the period 70,000 5,865 5,865 18,138 199,315 217,453 293,318

Changes during the period　Dividends from surplus ̶ ̶ ̶ 3,990 (23,940) (19,950) (19,950)

　Net income ̶ ̶ ̶ ̶ 42,524 42,524 42,524

　Net changes of items other than 　 shareholders’ equity ̶ ̶ ̶ ̶ ̶ ̶ ̶

Total changes during the period ̶ ̶ ̶ 3,990 18,584 22,574 22,574

Balance at the end of the period ¥70,000 ¥5,865 ¥5,865 ¥22,128 ¥217,900 ¥240,028 ¥315,893

(Millions of yen)

2015

Valuation and Translation Adjustments

Total Net Assets

Net unrealized gains (losses)

on other securities,

net of taxes

Land revaluation, net of taxes

Total valuation and

translation adjustments

Balance at the beginning of the period ¥ 83,416 ¥(1,513) ¥ 81,903 ¥369,230

　Cumulative effects of changes in accounting policies ̶ ̶ ̶ 5,991

Restated balance at the beginning of the period 83,416 (1,513) 81,903 375,221

Changes during the period　Dividends from surplus ̶ ̶ ̶ (19,950)

　Net income ̶ ̶ ̶ 42,524

　Net changes of items other than shareholders’ equity 34,696 33 34,729 34,729

Total changes during the period 34,696 33 34,729 57,304

Balance at the end of the period ¥118,113 ¥(1,480) ¥116,632 ¥432,526

Statements of Changes in Net Assets (Continued)



Statements of Cash FlowsSony Life Insurance Co., Ltd.For the years ended March 31, 2014 and 2015

(Millions of yen)

2014 2015

Cash flows from operating activities　Income before income taxes ¥ 57,583 ¥ 69,828　Depreciation of real estate for rent and others 2,077 1,931　Depreciation and amortization 5,064 5,267　Impairment losses 36 10　Increase (decrease) in reserve for outstanding claims 55 746　Increase (decrease) in policy reserves 650,703 603,607　Increase in interest of reserve for policyholders’ dividends 5 3　Increase (decrease) in reserve for policyholders’ dividends 2,232 2,153　Increase (decrease) in reserve for possible loan losses 6 26　Increase (decrease) in reserve for investment losses ̶ 6,352　Increase (decrease) in reserve for employees’ retirement benefits 2,645 2,716　Increase (decrease) in reserve for directors’ retirement benefits (104) 24　Increase (decrease) in reserve for price fluctuations 9,291 1,288　Interest income and dividends (122,160) (133,592)　(Gains) losses on securities (77,861) (127,440)　Interest expenses 48 31　Foreign exchange (gains) losses (1,183) (5,068)　(Gains) losses on disposal of tangible fixed assets 40 31　(Increase) decrease in due from reinsurers (37) (42)　(Increase) decrease in other assets (excluding those related to investing and financing activities) 18,143 17,717　Increase (decrease) in due to agencies (262) 281　Increase (decrease) in due to reinsurers 20 18　Increase (decrease) in other liabilities (excluding those related to investing and financing activities) (9,774) 3,802　Others, net (4,722) (6,276)　Subtotal 531,845 443,418　Interest and dividends received 129,633 142,216　Interest paid (48) (31)　Policyholders’ dividends paid (2,273) (2,202)　Others, net (5,392) (5,103)　Income taxes paid (28,837) (19,015)　Net cash provided by (used in) operating activities 624,926 559,281Cash flows from investing activities　Proceeds from sale of monetary trusts 5,100 5,300　Purchases of securities (770,519) (671,343)　Proceeds from sale and redemption of securities 113,909 253,267　Investments in loans (54,102) (54,199)　Proceeds from collections of loans 25,405 24,618　Others, net ̶ (1,626)　Total of net cash provided by (used in) investment transactions (680,205) (443,983)　[Total of net cash provided by (used in) operating activities and investment transactions] [(55,279)] [115,297]　Purchases of tangible fixed assets (682) (53,227)　Proceeds from sale of tangible fixed assets 2,021 ̶　Purchase of securities of affiliates (3,500) (2,500)　Others, net (3,255) (2,301)　Net cash provided by (used in) investing activities (685,622) (502,013)Cash flows from financing activities　Cash dividends paid (13,300) (19,950)　Others, net (12) (4)　Net cash provided by (used in) financing activities (13,312) (19,954)Effect of exchange rate changes on cash and cash equivalents 2 0Net increase (decrease) in cash and cash equivalents (74,006) 37,314Cash and cash equivalents at the beginning of the period 124,461 50,455Cash and cash equivalents at the end of the period ¥ 50,455 ¥ 87,769



1 Loans by Borrower Category(Millions of yen)

As of March 31, 2014 2015

Bankrupt and quasi-bankrupt loans ¥ ̶ ¥ ̶

Doubtful loans ̶ ̶

Sub-standard loans ̶ ̶　Subtotal ̶ ̶　[% to total] [̶] [̶]

Normal loans 156,815 165,075

Total ¥156,815 ¥165,075

Notes: 1. Bankrupt and quasi-bankrupt loans are loans to borrowers who are subject to bankruptcy, corporate reorganization, rehabilitation or other similar proceedings and other borrowers in serious financial difficulties.

2. Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) 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.

2 Risk-monitored LoansNot applicable

3 Accounting Indicators

3- 01 Reserve for outstanding claims

(Millions of yen)

As of March 31, 2014 2015

Insurance claims　Death benefits ¥ 6,702 ¥ 6,702

　Accidental benefits 595 220

　Disability payments 1,405 1,729

　Maturity benefits 1,272 971

　Others 1,556 1,672

　Subtotal 11,532 11,296

Annuity payments 163 229

Insurance benefits 5,323 5,698

Surrender payments 7,437 7,975

Deferred insurance benefits 134 107

Total, including others ¥24,702 ¥25,449



3- 02 Policy reserves(Millions of yen)

As of March 31, 2014 2015Policy reserves (excluding contingency reserve)　Individual life insurance ¥5,840,272 ¥6,438,959　　General accounts 5,257,428 5,728,223　　Separate accounts 582,844 710,735　Individual annuities 164,451 202,337　　General accounts 115,818 131,816　　Separate accounts 48,632 70,521　Group life insurance 41 26　　General accounts 41 26　　Separate accounts ̶ ̶　Group annuities 55,196 17,210　　General accounts 55,196 17,210　　Separate accounts ̶ ̶　Others ̶ ̶　　General accounts ̶ ̶　　Separate accounts ̶ ̶　Subtotal 6,059,962 6,658,533　　General accounts 5,428,484 5,877,276　　Separate accounts 631,477 781,256Contingency reserve 63,671 68,707Total ¥6,123,633 ¥6,727,241　　General accounts ¥5,492,156 ¥5,945,984　　Separate accounts 631,477 781,256

3- 03 Breakdown of policy reserves(Millions of yen)

As of March 31, 2014 2015Premium reserve ¥5,859,446 ¥6,454,413Unearned premiums 200,515 204,119Refund reserve ̶ ̶Contingency reserve 63,671 68,707Total ¥6,123,633 ¥6,727,241

3- 04 Policy reserve calculation methods, ratios, and balance involving individual life insurance and individual annuities by contract year

Policy reserve calculation methods and ratiosAs of March 31, 2014 2015Calculation method　Policies subject to standard policy reserve method　　Pure death-protection insurance Net level premium reserve method Net level premium reserve method　　Mixed insurance Net level premium reserve method Net level premium reserve method　　Pure endowment insurance Net level premium reserve method Net level premium reserve method　　Annuities Net level premium reserve method Net level premium reserve method　Policies not subject to standard policy reserve method　　Pure death-protection insurance Net level premium reserve method Net level premium reserve method　　Mixed insurance Net level premium reserve method Net level premium reserve method　　Pure endowment insurance Net level premium reserve method Net level premium reserve method　　Annuities Net level premium reserve method Net level premium reserve methodRatio of “amount of the company’s policy reserves (excluding contingency reserve)” to “policy reserves required by regulatory standards” 100.1% 100.1%

Notes: 1. The calculating methods and ratios are set for individual life insurance and individual annuities. The concept of accumulation method is not targeted at policy reserves for group life insurance and group annuities, so these insurance policies are not included.

2. The above ratios indicate the amounts of the company’s policy reserves (excluding contingency reserve) to the required premium reserves and unearned premiums calculated by (a) the method laid down in the Ministry of Finance Public Notice No. 48 of 1996 for policies to which the standard policy reserve method is applied, and (b) the net level premium reserve method for policies to which the standard policy reserve method is not applied. The amounts of the company’s policy reserves include policy reserves additionally reserved to maintain the future soundness of certain policies.



Balance of policy reserves by contract year(Millions of yen, %)

Fiscal year issued Balance of policy reserves Assumed interest rate

Up to FY1980 ¥ ̶ ̶%FY1981 to FY1985 32,454 6.00–6.25FY1986 to FY1990 52,531 6.00–6.25FY1991 to FY1995 553,252 2.75–6.25FY1996 to FY2000 1,180,300 1.90–4.00FY2001 to FY2005 1,376,541 1.50FY2006 to FY2010 1,517,284 1.50FY2011 317,060 1.50FY2012 341,829 1.50FY2013 315,932 1.00FY2014 172,851 1.00

Notes: 1. The balance of policy reserves shows the total of those for individual life insurance and individual annuities, excluding those of separate account assets and contingency reserves.

2. The assumed interest rate shows the assumed interest rate of the majority of policy reserves for each contract fiscal year.

3- 05 Balance, calculating method, and coefficient of policy reserves of general accounts related to policies with minimum guarantees which insurance policies are invested in separate accounts

Balance of policy reserves (general account)(Millions of yen)

As of March 31, 2014 2015

Balance of policy reserves (general account) ¥35,270 ¥45,902Notes: 1. Calculations employed in the table above apply to the insurance policies subject to the standard policy reserve method provided for under Article 68 of

the Ordinance for Enforcement of the Insurance Business Act of Japan. 2. Each of the balances of policy reserves of the general accounts show the total of premium reserve related to minimum guarantees and unearned

premiums.

Calculating method and coefficient1. Policy reserves related to minimum guarantees are calculated using the standard policy reserve method based on the Ministry of Finance

Public Notice No. 48 of 1996 “Comprehensive Supervisory Guidelines for Insurance Companies (II-2-1-3-1).”2. The coefficients that form the basis for the calculations are the rates stipulated in Article 9, Paragraph 1-2 of the above Public Notice.

The assumed surrender rates consist of an annual rate of 5.0% during the payment of premiums, and an annual rate of 3.0% after the payment of premiums.

3- 06 Reserve for policyholders’ dividends(Millions of yen)

2014

For the year ended March 31,Individual life

insuranceIndividual annuities

Group life insurance

Group annuities

Asset-formation insurance,

asset-formation annuities Others Total

At the beginning of the period ¥ 1,938 ¥ 241 ¥2,064 ¥28 ¥ ̶ ¥ ̶ ¥ 4,273Increase due to interest 5 0 0 ̶ ̶ ̶ 5Decrease due to dividend payment 132 29 2,083 28 ̶ ̶ 2,273Provision for the period (27) 14 2,178 67 ̶ ̶ 2,232At the end of the period 1,783 226 2,160 67 ̶ ̶ 4,237

[1,412] [131] [0] [̶] [̶] [̶] [1,544]

(Millions of yen)

2015

For the year ended March 31,Individual life



Group annuities



At the beginning of the period ¥ 1,783 ¥ 226 ¥2,160 ¥ 67 ¥ ̶ ¥ ̶ ¥ 4,237Increase due to interest 2 0 ̶ ̶ ̶ ̶ 3Decrease due to dividend payment 103 32 2,043 23 ̶ ̶ 2,202Provision for the period 110 36 2,015 (10) ̶ ̶ 2,153At the end of the period 1,794 230 2,133 33 ̶ ̶ 4,191

[1,545] [157] [0] [̶] [̶] [̶] [1,703]Note: Figures in [ ] are accumulated dividends.



3- 07 Other reserves(Millions of yen)

2014 2015

For the years ended March 31,

Balance at the beginning of the period

Balance at the end of the period

Increase (decrease)

Balance at the beginning of the period


Increase (decrease)

Reserve for possible loan losses　General reserve for possible loan losses ¥ 0 ¥ 0 ¥ 0 ¥ 0 ¥ 0 ¥ 0　Specific reserve for possible loan losses 235 242 6 242 267 25　Reserve for loan losses from borrowers 　 in specific foreign countries ̶ ̶ ̶ ̶ ̶ ̶Reserve for investment losses ̶ ̶ ̶ ̶ 6,352 6,352Reserve for employees’ retirement benefits 22,770 25,389 2,619 17,008* 19,725 2,716Reserve for directors’ retirement benefits 171 66 (104) 66 91 24Reserve for price fluctuations 32,264 41,556 9,291 41,556 42,845 1,288

* The “Accounting Standards for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and the “Guidance on Accounting Standards for Retirement Benefits” (ASBJ Guidance No. 25, March 26, 2015) have been applied from the fiscal year under review. Accordingly, the calculation method for retirement benefit obligations and service costs has been revised. As a result, the balance at the beginning of the period decreased ¥8,381 million.

3- 08 Insurance premiums(Millions of yen)

For the years ended March 31, 2014 2015

Individual life insurance ¥936,009 ¥873,718　Lump-sum payment 162,027 57,458　Annual payment 220,465 240,743　Semi-annual payment 9,986 10,343　Monthly payment 543,530 565,171Individual annuities 16,469 32,642　Lump-sum payment 3,504 16,495　Annual payment 3,990 5,409　Semi-annual payment 216 238　Monthly payment 8,757 10,498Group life insurance 4,523 4,855Group annuities 2,658 1,280Total, including others ¥959,660 ¥912,497

3- 09 Insurance claims(Millions of yen)

2014 2015

For the years ended March 31, TotalIndividual life



Group annuities



Death benefits ¥45,108 ¥44,056 ¥̶ ¥1,772 ¥̶ ¥̶ ¥̶ ¥45,828Accidental benefits 674 707 ̶ 0 ̶ ̶ ̶ 707Disability payments 2,666 2,195 ̶ 101 ̶ ̶ ̶ 2,296Maturity benefits 21,930 22,513 ̶ ̶ ̶ ̶ ̶ 22,513Others 7,034 8,206 ̶ 69 ̶ ̶ ̶ 8,275Total ¥77,413 ¥77,679 ¥̶ ¥1,942 ¥̶ ¥̶ ¥̶ ¥79,622

3- 10 Annuity payments(Millions of yen)

2014 2015




Group annuities



Annuity payments ¥10,768 ¥̶ ¥9,249 ¥8 ¥2,022 ¥̶ ¥̶ ¥11,280



3- 11 Insurance benefits(Millions of yen)

2014 2015




Group annuities



Death benefits ¥ 2,210 ¥ 2,467 ¥ 42 ¥̶ ¥ ̶ ¥̶ ¥̶ ¥ 2,509

Hospitalization benefits 8,992 9,128 ̶ 0 ̶ ̶ ̶ 9,128

Surgery benefits 8,604 8,957 ̶ ̶ ̶ ̶ ̶ 8,957

Disability benefits 169 128 ̶ 0 ̶ ̶ ̶ 128

Living benefits 23,070 30,835 ̶ ̶ ̶ ̶ ̶ 30,835

Others 12,462 9,957 575 ̶ 1,073 ̶ ̶ 11,607

Total ¥55,510 ¥61,474 ¥618 ¥ 0 ¥1,073 ¥̶ ¥̶ ¥63,166

3- 12 Surrender payments(Millions of yen)

2014 2015




Group annuities



Surrender payments ¥178,402 ¥181,503 ¥5,676 ¥̶ ¥35,950 ¥̶ ¥̶ ¥223,130

3- 13 Depreciation and amortization(Millions of yen, %)

2014 2015

For the years ended March 31,Acquisition

costDepreciation

expensesAccumulated depreciation

Balance at the end

of the periodRatio of

depreciationAcquisition

costDepreciation

expensesAccumulated depreciation

Balance at the end

of the periodRatio of

depreciation

Tangible fixed assets ¥ 4,807 ¥ 262 ¥ 2,446 ¥ 2,361 50.9% ¥ 4,857 ¥ 266 ¥ 2,582 ¥ 2,274 53.2%

　Buildings 3,528 176 1,490 2,037 42.3 3,567 178 1,574 1,993 44.1

　Leased assets 20 0 0 19 1.7 20 4 4 15 21.7

　Other tangible fixed assets 1,259 86 955 304 75.8 1,269 84 1,003 266 79.0

Intangible fixed assets 38,095 4,799 14,235 23,859 37.4 39,825 4,997 18,244 21,580 45.8

Others 11 2 6 5 52.6 22 3 8 13 39.0

Total ¥42,915 ¥5,064 ¥16,688 ¥26,226 38.9% ¥44,705 ¥5,267 ¥20,836 ¥23,869 46.6%

3- 14 Operating expenses(Millions of yen)


Sales and marketing expenses ¥ 56,713 ¥ 56,354

Sales administrative expenses 14,887 15,904

General administrative expenses 42,267 43,344

Total ¥113,868 ¥115,603

Note: Contribution to the Life Insurance Policyholders Protection Corporation of Japan prescribed by Article 259 of the Insurance Business Act of Japan is as follows:

(Millions of yen)


Life Insurance Policyholders Protection Corporation of Japan ¥846 ¥708



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


Core profit (A) ¥72,365 ¥76,505

　Capital gains 2,130 14,447

　　Income from monetary trusts, net ̶ ̶　　Income from trading securities, net ̶ 479

　　Gains on sale of securities 773 8,899

　　Gains on derivatives, net 172 ̶　　Foreign exchange gains, net 1,183 5,068

　　Other capital gains ̶ ̶　Capital losses 949 6,011

　　Losses on monetary trusts, net ̶ ̶　　Losses on trading securities, net ̶ ̶　　Losses on sale of securities 528 0

　　Devaluation losses on securities ̶ ̶　　Losses on derivatives, net ̶ 2,099

　　Foreign exchange losses, net ̶ ̶　　Other capital losses 420 3,910

　Net capital gains (losses) (B) 1,180 8,435

Core profit plus net capital gains (losses) (A) + (B) 73,545 84,940

　Other one-time gains ̶ ̶　　Gains from reinsurance ̶ ̶　　Reversal of contingency reserve ̶ ̶　　Reversal of specific reserve for possible loan losses ̶ ̶　　Others ̶ ̶　Other one-time losses 4,340 5,275

　　Losses from reinsurance ̶ ̶　　Provision for contingency reserve 4,110 5,035

　　Provision for specific reserve for possible loan losses 6 31

　　Provision for reserve for loan losses from borrowers in specific foreign countries ̶ ̶　　Write-off of loans ̶ ̶　　Others 223 207

　Net other one-time gains (losses) (C) (4,340) (5,275)

Ordinary profit (A) + (B) + (C) ¥69,205 ¥79,665Notes: 1. Core profit for the fiscal year ended March 31, 2015 (A) includes income gains of ¥5,283 million in income from monetary trusts along with interest

income and dividends of ¥28 million in income from trading securities, net. Other capital losses include the provision of policy reserves of ¥3,693 million for currency market fluctuations of products denominated in foreign currencies and impairment losses of ¥217 million from investment partnerships. “Others” of other one-time losses include the provision of additional policy reserve of ¥207 million.

2. Core profit for the fiscal year ended March 31, 2014 (A) includes income gains of ¥5,311 million in income from monetary trusts. Other capital losses include the provision of policy reserves of ¥227 million for currency market fluctuations of products denominated in foreign currencies and impairment losses of ¥193 million from investment partnerships. “Others” of other one-time losses include the provision of additional policy reserve of ¥223 million.



Reference: Reconciliation to core profit(Millions of yen)


Core Revenues ¥1,194,979 ¥1,209,380

　Income from insurance premiums 960,986 914,034

　　Insurance premiums 959,660 912,497

　　Ceded reinsurance commissions 1,325 1,537

　Investment income 204,881 260,390

　　Interest income and dividends 122,160 133,592

　　Gain on redemption of securities 2 1

　　Reversal of general reserve for possible loan losses ̶ ̶　　Other investment income 47 7

　　Gains on separate accounts, net 82,670 126,789

　Other ordinary income 23,799 29,644

　　Income for annuity riders 2,151 3,617

　　Income for deferred payment of claims 17,197 22,154

　　Reversal of reserves for outstanding claims ̶ ̶　　Other ordinary income 4,451 3,872

　Other core revenues 5,311 5,311

Core Expenses 1,122,613 1,132,874

　Insurance claims and other payments 327,257 382,902

　　Insurance claims 77,413 79,622

　　Annuity payments 10,768 11,280

　　Insurance benefits 55,510 63,166

　　Surrender payments 178,402 223,130

　　Refund to policyholders 3,203 3,675

　　Reinsurance premiums 1,959 2,027

　Provision for policy reserves and others 646,203 595,420

　Investment expenses 7,777 7,377

　　Interest expenses 48 31

　　Losses on redemption of securities ̶ 0

　　Provision for general reserve for possible loan losses 0 0

　　Depreciation of real estate for rent and others 2,077 1,931

　　Other investment expenses 5,652 5,413

　　Losses on separate accounts, net ̶ ̶　Operating expenses 113,868 115,603

　Other ordinary expenses 27,507 31,571

　　Payments of deferred claims 10,884 12,184

　　Taxes 7,981 10,571

　　Depreciation and amortization 5,064 5,267

　　Provision for reserve for employees’ retirement benefits 3,532 3,523

　　Provision for reserve for directors’ retirement benefits ̶ 24

　　Others 44 0

　Other core expenses ̶ ̶

Core Profit ¥ 72,365 ¥ 76,505

Reference: Positive spread and yields(Billions of yen, %)


Positive spread ¥8.4 ¥13.0

　Investment yield for core profit 2.35% 2.35%

　Investment yield (general account) 2.20% 2.36%

　Average assumed interest rate 2.18% 2.12%



5 Fair Value Information on Securities (General Account)

5- 01 Fair value information on securitiesValuation gains (losses) on trading-purpose securities

(Millions of yen)

2014 2015

As of March 31, Balance sheet amountNet valuation gains (losses)

recorded in income Balance sheet amountNet valuation gains (losses)

recorded in income

Trading-purpose securities ¥̶ ¥̶ ¥1,062 ¥40Note: The above table includes trading-purpose securities included in “monetary trusts,” etc.

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

(Millions of yen)

2014

As of March 31,Carryingamount Fair value

Net unrealizedgains (losses)

Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,409,662 ¥4,839,983 ¥430,320 ¥430,394 ¥ 73

Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶

Stocks of subsidiaries and affiliated companies ̶ ̶ ̶ ̶ ̶

Available-for-sale securities 1,065,514 1,189,899 124,384 124,420 35　Japanese government and corporate bonds 1,035,912 1,146,757 110,844 110,866 22　Japanese stocks 12,236 21,205 8,968 8,972 3　Foreign securities 15,891 19,403 3,511 3,521 10　　Bonds 15,891 19,403 3,511 3,521 10　　Stocks, etc. ̶ ̶ ̶ ̶ ̶　Other securities 1,474 2,533 1,059 1,059 ̶　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶

Total ¥5,475,177 ¥6,029,882 ¥554,705 ¥554,814 ¥109

Japanese government and corporate bonds ¥5,385,143 ¥5,913,448 ¥528,305 ¥528,327 ¥ 22

Japanese stocks 12,236 21,205 8,968 8,972 3

Foreign securities 76,323 92,695 16,371 16,455 84　Bonds 76,323 92,695 16,371 16,455 84　Stocks, etc. ̶ ̶ ̶ ̶ ̶

Other securities 1,474 2,533 1,059 1,059 ̶

Monetary claims purchased ̶ ̶ ̶ ̶ ̶

Certificates of deposit ̶ ̶ ̶ ̶ ̶

Others ̶ ̶ ̶ ̶ ̶



(Millions of yen)

2015



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,878,792 ¥5,718,258 ¥ 839,466 ¥ 839,567 ¥101

Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶

Stocks of subsidiaries and affiliated companies ̶ ̶ ̶ ̶ ̶

Available-for-sale securities 1,007,822 1,176,698 168,875 168,984 108

　Japanese government and corporate bonds 974,613 1,120,126 145,512 145,512 ̶　Japanese stocks 13,421 29,496 16,075 16,075 ̶　Foreign securities 19,451 26,412 6,961 7,069 108

　　Bonds 19,451 26,412 6,961 7,069 108

　　Stocks, etc. ̶ ̶ ̶ ̶ ̶　Other securities 336 663 326 326 ̶　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶

Total ¥5,886,614 ¥6,894,956 ¥1,008,341 ¥1,008,551 ¥210

Japanese government and corporate bonds ¥5,775,323 ¥6,736,583 ¥ 961,259 ¥ 961,361 ¥101

Japanese stocks 13,421 29,496 16,075 16,075 ̶

Foreign securities 97,533 128,214 30,680 30,788 108

　Bonds 97,533 128,214 30,680 30,788 108

　Stocks, etc. ̶ ̶ ̶ ̶ ̶

Other securities 336 663 326 326 ̶

Monetary claims purchased ̶ ̶ ̶ ̶ ̶

Certificates of deposit ̶ ̶ ̶ ̶ ̶

Others ̶ ̶ ̶ ̶ ̶Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act

of Japan. 2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, as of March 31, 2015

amounted to ¥268,742 million and ¥45,208 million, respectively. 3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

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

As of March 31, 2014 2015

Held-to-maturity securities ¥ ̶ ¥ ̶　Unlisted foreign bonds ̶ ̶　Others ̶ ̶

Policy reserve matching bonds ̶ ̶

Stocks of subsidiaries and affiliated companies 16,000 18,500

Available-for-sale securities 17,289 14,492

　Unlisted domestic stocks (except OTC stocks) ̶ ̶　Unlisted foreign stocks (except OTC stocks) 823 663

　Unlisted foreign bonds ̶ ̶　Others 16,466 13,828

Total ¥33,289 ¥32,992



c. 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)

2014



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,409,662 ¥4,839,983 ¥430,320 ¥430,394 ¥ 73Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies 16,000 16,000 ̶ ̶ ̶Available-for-sale securities 1,082,804 1,214,309 131,504 131,986 481　Japanese government and corporate bonds 1,035,912 1,146,757 110,844 110,866 22　Japanese stocks 12,236 21,205 8,968 8,972 3　Foreign securities 16,714 21,129 4,414 4,424 10　　Bonds 15,891 19,403 3,511 3,521 10　　Stocks, etc. 823 1,725 902 902 ̶　Other securities 17,940 25,217 7,277 7,723 446　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,508,467 ¥6,070,292 ¥561,825 ¥562,381 ¥555Japanese government and corporate bonds ¥5,385,143 ¥5,913,448 ¥528,305 ¥528,327 ¥ 22Japanese stocks 24,236 33,205 8,968 8,972 3Foreign securities 81,146 98,420 17,273 17,357 84　Bonds 76,323 92,695 16,371 16,455 84　Stocks, etc. 4,823 5,725 902 902 ̶Other securities 17,940 25,217 7,277 7,723 446Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶

(Millions of yen)

2015



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,878,792 ¥5,718,258 ¥ 839,466 ¥ 839,567 ¥101Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies 18,500 18,500 ̶ ̶ ̶Available-for-sale securities 1,022,315 1,198,889 176,574 177,188 614　Japanese government and corporate bonds 974,613 1,120,126 145,512 145,512 ̶　Japanese stocks 13,421 29,496 16,075 16,075 ̶　Foreign securities 20,115 28,488 8,373 8,482 108　　Bonds 19,451 26,412 6,961 7,069 108　　Stocks, etc. 663 2,076 1,412 1,412 ̶　Other securities 14,165 20,778 6,613 7,118 505　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,919,607 ¥6,935,647 ¥1,016,040 ¥1,016,756 ¥715Japanese government and corporate bonds ¥5,775,323 ¥6,736,583 ¥ 961,259 ¥ 961,361 ¥101Japanese stocks 26,421 42,496 16,075 16,075 ̶Foreign securities 103,697 135,790 32,092 32,201 108　Bonds 97,533 128,214 30,680 30,788 108　Stocks, etc. 6,163 7,576 1,412 1,412 ̶Other securities 14,165 20,778 6,613 7,118 505Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶



5- 02 Fair value information on monetary trusts (general account)(Millions of yen)

2014

As of March 31,Balance sheet

amount Fair valueNet unrealized gains (losses) Unrealized gains Unrealized losses

Monetary trusts ¥305,346 ¥305,346 ¥̶ ¥̶ ¥̶

(Millions of yen)

2015


amount Fair valueNet unrealized gains (losses) Unrealized gains Unrealized losses

Monetary trusts ¥313,276 ¥313,276 ¥̶ ¥̶ ¥̶Note: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investmentNot applicable

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

2014

As of March 31, Carrying amount Fair valueNet unrealized gains (losses) Unrealized gains Unrealized losses

Monetary trusts for held-to-maturity ¥ ̶ ¥ ̶ ¥ ̶ ¥ ̶ ¥̶

Monetary trusts for policy reserve matching ̶ ̶ ̶ ̶ ̶

Other monetary trusts 268,042 305,296 37,253 37,253 ̶

(Millions of yen)

2015

As of March 31, Carrying amount Fair valueNet unrealized gains (losses) Unrealized gains Unrealized losses

Monetary trusts for held-to-maturity ¥ ̶ ¥ ̶ ¥ ̶ ¥ ̶ ¥̶

Monetary trusts for policy reserve matching ̶ ̶ ̶ ̶ ̶

Other monetary trusts 268,017 313,225 45,208 45,208 ̶Note: Monetary trusts include cash and call loans, etc., held in monetary trusts.

5- 03 Fair value information on derivative transactions (general account) (total of derivatives to which hedge accounting is applied and derivatives to which hedge accounting is not applied)

1. Breakdown of valuation gains and losses (Derivatives to which hedge accounting is applied and derivatives to which hedge accounting is not applied)

(Millions of yen)

2014 2015

As of March 31,

Interest rate-

relatedCurrency-

relatedStock-related

Bond-related Others Total

Interest rate-

relatedCurrency-



Hedge accounting is applied ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥ ̶ ¥̶ ¥ ̶ ¥̶ ¥̶ ¥ ̶

Hedge accounting is not applied ̶ ̶ ̶ ̶ ̶ ̶ 139 (7) (612) ̶ ̶ (479)

Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥139 ¥ (7) ¥(612) ¥̶ ¥̶ ¥(479)

Note: Valuation gains and losses on derivatives to which hedge accounting is not applied are recorded in the statements of income.



2. Interest rate derivatives(Millions of yen)

2014 2015

As of March 31,

Notional amount

total Fair value

Valuationgains

(losses)

Notional amount

total Fair value

Valuationgains

(losses)Over 1 year Over 1 year

Over-the-counter transactions　Interest rate swaps　　Fixed interest rate received/　　 Variable interest payment ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000 ¥139 ¥139

Total ¥̶ ¥139

Note: Fair value is also presented as valuation gains (losses).

Reference: Balance of interest rate swaps by remaining period(Millions of yen, %)

2014

As of March 31,Due in

1 year or less

Due after 1 year through

3 years

Due after 3 years through

5 years


7 years


10 yearsDue after 10 years Total

Fixed interest rate received/variable interest payment for notional principal of interest rate swap ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶　Average fixed interest rate received ̶ ̶ ̶ ̶ ̶ ̶ ̶　Average variable interest payment ̶ ̶ ̶ ̶ ̶ ̶ ̶Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶


2015


1 year or less


3 years


5 years


7 years



Fixed interest rate received/variable interest payment for notional principal of interest rate swap ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000　Average fixed interest rate received ̶ ̶ ̶ ̶ ̶ 1.89% 1.89%　Average variable interest payment ̶ ̶ ̶ ̶ ̶ 0.15% 0.15%Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000

3. Currency derivatives(Millions of yen)

2014 2015

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains


Over-the-counter transactions　Forward foreign-exchange 　 contracts　　Sold ¥̶ ¥̶ ¥̶ ¥̶ ¥21,282 ¥̶ ¥ (7) ¥ (7)

　　　U.S. dollars ̶ ̶ ̶ ̶ 10,364 ̶ 93 93

　　　Euro ̶ ̶ ̶ ̶ 9,968 ̶ (115) (115)

　　　Australian dollars ̶ ̶ ̶ ̶ 949 ̶ 15 15

Total ¥̶ ¥ (7)

Notes: 1. The forward rate of exchange is used to value forward foreign-exchange transactions at the end of the fiscal year. 2. Fair value is also presented as valuation gains (losses).



4. Stock derivatives(Millions of yen)

2014 2015

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains


Listed　Yen-denominated stock 　 index futures　　Sold　 ¥̶ ¥̶ ¥̶ ¥̶ ¥21,903 ¥̶ ¥(612) ¥(612)

Total ¥̶ ¥(612)


5. Bond derivativesNot applicable

6. OthersNot applicable

6 Fair Value Information on Securities (Company Total)

6- 01 Fair value information on securitiesValuation gains (losses) on trading-purpose securities

(Millions of yen)

2014 2015

As of March 31, Balance sheet amountNet valuation gains (losses)

recorded in income Balance sheet amountNet valuation gains (losses)

recorded in income

Trading-purpose securities ¥620,666 ¥50,776 ¥761,473 ¥89,147Note: The above table includes trading-purpose securities included in “monetary trusts,” etc.

Fair value information on securities

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

2014



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,409,662 ¥4,839,983 ¥430,320 ¥430,394 ¥ 73Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies ̶ ̶ ̶ ̶ ̶Available-for-sale securities 1,065,514 1,189,899 124,384 124,420 35　Japanese government and corporate bonds 1,035,912 1,146,757 110,844 110,866 22　Japanese stocks 12,236 21,205 8,968 8,972 3　Foreign securities 15,891 19,403 3,511 3,521 10　　Bonds 15,891 19,403 3,511 3,521 10　　Stocks, etc. ̶ ̶ ̶ ̶ ̶　Other securities 1,474 2,533 1,059 1,059 ̶　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,475,177 ¥6,029,882 ¥554,705 ¥554,814 ¥109Japanese government and corporate bonds ¥5,385,143 ¥5,913,448 ¥528,305 ¥528,327 ¥ 22Japanese stocks 12,236 21,205 8,968 8,972 3Foreign securities 76,323 92,695 16,371 16,455 84　Bonds 76,323 92,695 16,371 16,455 84　Stocks, etc. ̶ ̶ ̶ ̶ ̶Other securities 1,474 2,533 1,059 1,059 ̶Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶



(Millions of yen)

2015



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,878,792 ¥5,718,258 ¥ 839,466 ¥ 839,567 ¥101Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies ̶ ̶ ̶ ̶ ̶Available-for-sale securities 1,007,822 1,176,698 168,875 168,984 108　Japanese government and corporate bonds 974,613 1,120,126 145,512 145,512 ̶　Japanese stocks 13,421 29,496 16,075 16,075 ̶　Foreign securities 19,451 26,412 6,961 7,069 108　　Bonds 19,451 26,412 6,961 7,069 108　　Stocks, etc. ̶ ̶ ̶ ̶ ̶　Other securities 336 663 326 326 ̶　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,886,614 ¥6,894,956 ¥1,008,341 ¥1,008,551 ¥210Japanese government and corporate bonds ¥5,775,323 ¥6,736,583 ¥ 961,259 ¥ 961,361 ¥101Japanese stocks 13,421 29,496 16,075 16,075 ̶Foreign securities 97,533 128,214 30,680 30,788 108　Bonds 97,533 128,214 30,680 30,788 108　Stocks, etc. ̶ ̶ ̶ ̶ ̶Other securities 336 663 326 326 ̶Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶

Notes: 1. The above table includes assets that are permitted to be treated as equivalent to securities defined in the Financial Instruments and Exchange Act of Japan.

2. Carrying amount and net unrealized gains (losses) on monetary trusts, including items other than trading-purpose securities, as of March 31, 2015 amounted to ¥268,742 million and ¥45,208 million, respectively.

3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.

○ Held-to-maturity securities(Millions of yen)

2014 2015


amount Fair value DifferenceBalance sheet

amount Fair value Difference

Held-to-maturity securities whose fair value exceeds balance sheet amount ¥4,404,321 ¥4,834,716 ¥430,394 ¥4,858,704 ¥5,698,272 ¥839,567　Japanese government and corporate bonds 4,349,230 4,766,691 417,460 4,780,622 5,596,470 815,848　Foreign securities 55,090 68,024 12,933 78,082 101,801 23,719　Other securities ̶ ̶ ̶ ̶ ̶ ̶Held-to-maturity securities whose fair value does not exceed balance sheet amount 5,341 5,267 (73) 20,087 19,985 (101)　Japanese government and corporate bonds ̶ ̶ ̶ 20,087 19,985 (101)　Foreign securities 5,341 5,267 (73) ̶ ̶ ̶　Other securities ̶ ̶ ̶ ̶ ̶ ̶

○ Policy reserve matching bondsNot applicable



○ Available-for-sale securities(Millions of yen)

2014 2015

As of March 31,Carryingamount

Balance sheetamount Difference

Carryingamount

Balance sheetamount Difference

Available-for-sale securities whose balance sheet amount exceeds carrying amount ¥1,017,996 ¥1,142,416 ¥124,420 ¥1,004,852 ¥1,173,837 ¥168,984　Japanese government and corporate bonds 989,552 1,100,419 110,866 974,613 1,120,126 145,512　Japanese stocks 12,041 21,013 8,972 13,421 29,496 16,075　Foreign securities 14,928 18,450 3,521 16,481 23,551 7,069　Other securities 1,474 2,533 1,059 336 663 326　Monetary claims purchased ̶ ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶ ̶Available-for-sale securities whose balance sheet amount does not exceed carrying amount 47,518 47,482 (35) 2,969 2,861 (108)　Japanese government and corporate bonds 46,360 46,338 (22) ̶ ̶ ̶　Japanese stocks 195 191 (3) ̶ ̶ ̶　Foreign securities 962 952 (10) 2,969 2,861 (108)　Other securities ̶ ̶ ̶ ̶ ̶ ̶　Monetary claims purchased ̶ ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶ ̶

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

As of March 31, 2014 2015

Held-to-maturity securities ¥ ̶ ¥ ̶　Unlisted foreign bonds ̶ ̶　Others ̶ ̶Policy reserve matching bonds ̶ ̶Stocks of subsidiaries and affiliated companies 16,000 18,500Available-for-sale securities 17,289 14,492　Unlisted domestic stocks (except OTC stocks) ̶ ̶　Unlisted foreign stocks (except OTC stocks) 823 663　Unlisted foreign bonds ̶ ̶　Others 16,466 13,828Total ¥33,289 ¥32,992



c. Fair value information consisting of that stated in the previous table-a and foreign exchange and other gains (losses) for table-b is as follows:

(Millions of yen)

2014



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,409,662 ¥4,839,983 ¥430,320 ¥430,394 ¥ 73Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies 16,000 16,000 ̶ ̶ ̶Available-for-sale securities 1,082,804 1,214,309 131,504 131,986 481　Japanese government and corporate bonds 1,035,912 1,146,757 110,844 110,866 22　Japanese stocks 12,236 21,205 8,968 8,972 3　Foreign securities 16,714 21,129 4,414 4,424 10　　Bonds 15,891 19,403 3,511 3,521 10　　Stocks, etc. 823 1,725 902 902 ̶　Other securities 17,940 25,217 7,277 7,723 446　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,508,467 ¥6,070,292 ¥561,825 ¥562,381 ¥555Japanese government and corporate bonds ¥5,385,143 ¥5,913,448 ¥528,305 ¥528,327 ¥ 22Japanese stocks 24,236 33,205 8,968 8,972 3Foreign securities 81,146 98,420 17,273 17,357 84　Bonds 76,323 92,695 16,371 16,455 84　Stocks, etc. 4,823 5,725 902 902 ̶Other securities 17,940 25,217 7,277 7,723 446Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶

(Millions of yen)

2015



Unrealizedgains

Unrealizedlosses

Held-to-maturity securities ¥4,878,792 ¥5,718,258 ¥ 839,466 ¥ 839,567 ¥101Policy reserve matching bonds ̶ ̶ ̶ ̶ ̶Stocks of subsidiaries and affiliated companies 18,500 18,500 ̶ ̶ ̶Available-for-sale securities 1,022,315 1,198,889 176,574 177,188 614　Japanese government and corporate bonds 974,613 1,120,126 145,512 145,512 ̶　Japanese stocks 13,421 29,496 16,075 16,075 ̶　Foreign securities 20,115 28,488 8,373 8,482 108　　Bonds 19,451 26,412 6,961 7,069 108　　Stocks, etc. 663 2,076 1,412 1,412 ̶　Other securities 14,165 20,778 6,613 7,118 505　Monetary claims purchased ̶ ̶ ̶ ̶ ̶　Certificates of deposit ̶ ̶ ̶ ̶ ̶　Others ̶ ̶ ̶ ̶ ̶Total ¥5,919,607 ¥6,935,647 ¥1,016,040 ¥1,016,756 ¥715Japanese government and corporate bonds ¥5,775,323 ¥6,736,583 ¥ 961,259 ¥ 961,361 ¥101Japanese stocks 26,421 42,496 16,075 16,075 ̶Foreign securities 103,697 135,790 32,092 32,201 108　Bonds 97,533 128,214 30,680 30,788 108　Stocks, etc. 6,163 7,576 1,412 1,412 ̶Other securities 14,165 20,778 6,613 7,118 505Monetary claims purchased ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶



6- 02 Fair value information on monetary trusts (company total)(Millions of yen)

2014 2015

As of March 31,Balance

sheet amount Fair value

Net unrealized

gains (losses)Balance

sheet amount Fair value

Net unrealized

gains (losses)Unrealized

gainsUnrealized

lossesUnrealized

gainsUnrealized

losses

Monetary trusts ¥305,346 ¥305,346 ¥̶ ¥̶ ¥̶ ¥313,276 ¥313,276 ¥̶ ¥̶ ¥̶Note: The above table includes ¥50 million of jointly invested monetary trusts.

Monetary trusts for investmentNot applicable

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

2014 2015

As of March 31,Carrying amount Fair value

Net unrealized

gains (losses)Carrying amount Fair value

Net unrealized

gains (losses)Unrealized

gainsUnrealized

lossesUnrealized

gainsUnrealized

losses

Monetary trusts for held-to-maturity ¥ ̶ ¥ ̶ ¥ ̶ ¥ ̶ ¥̶ ¥ ̶ ¥ ̶ ¥ ̶ ¥ ̶ ¥̶

Monetary trusts for policy reserve matching ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Other monetary trusts 268,042 305,296 37,253 37,253 ̶ 268,017 313,225 45,208 45,208 ̶

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

6- 03 Fair value information on derivative transactions (company total)Qualitative Information1. Transaction details The main derivative transactions used by Sony Life are as follows: • Interest rate-related: Interest rate swap transactions • Currency-related: Forward foreign exchange transactions • Stock-related: Stock index futures trading

2. Purpose of use and policy on derivative transactions Sony Life’s policy is to conduct derivative transactions to reduce risks related to its holdings of assets and liabilities, and does not

engage in speculative derivative transactions. • Interest rate-related: The purpose is to hedge interest rate-related risk on its holdings of assets and liabilities. • Currency-related: The purpose is to hedge foreign currency risk related to its holdings of foreign currency-dominated assets and

foreign currency risk related to the minimum guaranteed for individual variable life insurance. • Stock-related: The purpose is to hedge equity-related risk corresponding to the minimum guaranteed for individual variable

life insurance.3. Risk details The risk of fluctuations in market value (interest rate-related risk, currency-related risk and stock-related risk) is inherent to derivative

transactions employed by Sony Life. However, as these transactions are conducted primarily to reduce risk related to its holdings of assets and liabilities, the total risk related to derivative transactions and their underlying assets and liabilities is limited. Credit risk is inherent to derivative instruments, but when conducting transactions, Sony Life selects parties that it believes pose little risk of default.

4. Risk management systems Sony Life’s balance of derivative transactions is within the limits that Sony Life has set in-house. On transactions conducted by the

division in charge of investment, the administrative division receives reports directly from the transaction counterparty. This system enables the administrative division and the investment division to independently determine derivative positions and transaction profits and losses. In addition, the management of risks related to derivative transactions is conducted strictly by the department in charge of supervision. Also, the risk management division regularly reports the overall risk status to the Company’s Board of Directors and Executive Committee.

5. Supplemental information regarding quantitative information Sony Life does not employ hedge accounting for derivative transactions.



Quantitative Information

1. Breakdown of valuation gains and losses (Derivatives to which hedge accounting is applied and derivatives to which hedge accounting is not applied)

(Millions of yen)

2014 2015

As of March 31,

Interest rate-

relatedCurrency-



Interest rate-

relatedCurrency-



Hedge accounting is applied ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥ ̶ ¥̶ ¥ ̶ ¥̶ ¥̶ ¥ ̶

Hedge accounting is not applied ̶ ̶ ̶ ̶ ̶ ̶ 139 (7) (612) ̶ ̶ (479)

Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥139 ¥(7) ¥(612) ¥̶ ¥̶ ¥(479)

Note: Valuation gains and losses on derivatives to which hedge accounting is not applied are recorded in the statements of income.

2. Derivatives to which hedge accounting is not applied

Interest rate derivatives(Millions of yen)

2014 2015

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains


Over-the-counter transactions　Interest rate swaps　　Fixed interest rate received/　　 Variable interest payment ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000 ¥139 ¥139

Total ¥̶ ¥139


Reference: Balance of interest rate swaps by remaining period(Millions of yen, %)

2014


1 year or less


3 years


5 years


7 years



Fixed interest rate received/variable interest payment for notional principal of interest rate swap ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶　Average fixed interest rate received ̶ ̶ ̶ ̶ ̶ ̶ ̶　Average variable interest payment ̶ ̶ ̶ ̶ ̶ ̶ ̶Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥̶


2015


1 year or less


3 years


5 years


7 years



Fixed interest rate received/variable interest payment for notional principal of interest rate swap ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000　Average fixed interest rate received ̶ ̶ ̶ ̶ ̶ 1.89% 1.89%　Average variable interest payment ̶ ̶ ̶ ̶ ̶ 0.15% 0.15%Total ¥̶ ¥̶ ¥̶ ¥̶ ¥̶ ¥1,000 ¥1,000



Currency derivatives(Millions of yen)

2014 2015

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains


Over-the-counter transactions　Forward foreign-exchange 　 contracts　　Sold ¥̶ ¥̶ ¥̶ ¥̶ ¥21,282 ¥̶ ¥ (7) ¥ (7)

　　　U.S. dollars ̶ ̶ ̶ ̶ 10,364 ̶ 93 93

　　　Euro ̶ ̶ ̶ ̶ 9,968 ̶ (115) (115)

　　　Australian dollars ̶ ̶ ̶ ̶ 949 ̶ 15 15

Total ¥̶ ¥ (7)

Notes: 1. The forward rate of exchange is used to value forward foreign-exchange transactions at the end of the fiscal year. 2. Fair value is also presented as valuation gains (losses).

Stock derivatives(Millions of yen)

2014 2015

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains


Listed　Yen-denominated stock 　 index futures　　Sold　 ¥̶ ¥̶ ¥̶ ¥̶ ¥21,903 ¥̶ ¥(612) ¥(612)

Total ¥̶ ¥(612)

Note: Fair value is measured using discounted present value.

Bond derivatives

Not applicable

OthersNot applicable

3. Derivatives to which hedge accounting is applied

Interest rate derivatives

Not applicable

Currency derivatives

Not applicable

Equity derivatives

Not applicable

Bond derivatives

Not applicable

OthersNot applicable


Sony Life

Performance Indicators (Non-consolidated)

1 Key Performance Indicators for Past Five Years(Millions of yen)

For the years ended March 31, 2011 2012 2013 2014 2015

Policy amount in force ¥35,947,326 ¥37,345,780 ¥39,124,675 ¥40,500,241 ¥42,430,898

　Individual life insurance 34,421,831 35,707,301 37,366,333 38,628,089 40,391,018

　Individual annuities 326,699 369,759 412,709 466,915 597,682

　Group life insurance 1,198,794 1,268,718 1,345,632 1,405,237 1,442,198

Policy amount in force for group annuities 58,937 57,811 56,503 55,196 17,210

Annualized premiums from insurance in force 604,793 635,401 669,937 696,986 735,728

　Of which, medical protection, living benefit 　 protection and other products

140,776 148,954 158,686 167,075 172,800

New policy amount 4,213,996 4,207,045 4,460,210 3,894,484 4,776,917

　Individual life insurance 4,166,278 4,145,663 4,396,676 3,814,291 4,625,700

　Individual annuities 32,746 57,664 57,931 75,088 145,926

　Group life insurance 14,971 3,717 5,602 5,104 5,291

Annualized premiums from new policies 71,230 70,854 73,263 63,992 76,612

　Of which, medical protection, living benefit 　 protection and other products

16,679 17,101 18,397 13,486 15,285

Ordinary revenues 900,091 967,400 1,142,274 1,197,109 1,223,827

　Of which, income from insurance 　 premiums

770,330 816,106 925,874 960,986 914,034

　Of which, investment income 119,500 133,945 199,833 212,323 280,148

Ordinary expenses 826,914 897,964 1,067,614 1,127,904 1,144,162

　Of which, insurance claims and 　 other payments

297,966 287,431 293,929 327,257 382,902

　Of which, investment expenses 19,303 14,370 11,686 8,506 9,727

　Of which, operating expenses 99,374 105,492 109,060 113,868 115,603

Ordinary profit 73,176 69,436 74,659 69,205 79,665

Net income 40,220 31,426 42,444 37,063 42,524

Core profit 56,295 71,685 80,045 72,365 76,505

Common stock 70,000 70,000 70,000 70,000 70,000

　Number of shares issued and outstanding　 (thousands of shares) 70,000 70,000 70,000 70,000 70,000

Total assets 4,723,332 5,222,846 5,952,750 6,624,903 7,301,350

　Of which, separate account assets 398,124 444,289 550,624 640,562 793,344

Policy reserves 4,371,484 4,843,020 5,472,930 6,123,633 6,727,241

Loans 134,419 138,909 145,104 154,219 162,399

Securities 4,017,583 4,545,019 5,211,535 5,954,716 6,543,703

Solvency margin ratio 2,900.1%[1,720.0%]

1,980.4% 2,281.8% 2,358.7% 2,555.0%

Number of employees 5,921 6,060 6,323 6,553 6,781Notes: 1. Policy amount in force is the total of individual life insurance, individual annuities and group life insurance. Policy amount for individual 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.

2. The policy amount in force for group annuities is equal to the amount of outstanding policy reserves. 3. New policy amount is the total of individual life insurance, individual annuities and group life insurance. New policy amount for individual annuities is

equal to the funds to be held at the time annuity payments commence. 4. Annualized premiums, which include individual life insurance and individual annuities, are converted to a per-year premium amount by multiplying

individual premiums by a coefficient corresponding to the premium payment method. (For lump-sum payment policies, premiums are divided by the number of coverage years.)

5. “Medical protection, living benefit protection and other products” is the portion of the annualized premium for medical protection benefits (hospitalization benefits, surgical benefits, etc.) and living benefit protection (benefits for specific diseases, nursing care benefits, etc.).

6. Cabinet Office Ordinance No. 23 of 2010 and Public Notice of Financial Services Agency No. 48 of 2010 prescribe a revision in the methods of calculating total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive). Therefore, the figure for the year ended March 31, 2011 and the figures for the years ended March 31, 2012 to 2015 are calculated based on different methods. The above-stated figure in [1,720.0%] as of March 31, 2011 is calculated on the assumption that these changes were applied as of March 31, 2011. The figure is also included in disclosures for the fiscal year ended March 31, 2011.



2 Key Performance Indicators

2- 01 Policy amount in force and new policy amountPolicy amount in force

(Millions of yen, %)2014 2015

As of March 31, NumberChange from

March 31, 2013 AmountChange from

March 31, 2013 NumberChange from


March 31, 2014Individual life insurance 6,236,000 104.6% ¥38,628,089 103.4% 6,552,685 105.1% ¥40,391,018 104.6%Individual annuities 94,413 114.8 466,915 113.1 119,419 126.5 597,682 128.0Group life insurance ̶ ̶ 1,405,237 104.4 ̶ ̶ 1,442,198 102.6Group annuities ̶ ̶ 55,196 97.7 ̶ ̶ 17,210 31.2

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(Millions of yen, %)

2014

For the year ended March 31, Number AmountYoY change YoY change

Amount, of which,

new policies

Amount, of which,

increase fromconversion

Individual life insurance 517,946 85.3% ¥3,814,291 86.8% ¥3,814,291 ¥̶Individual annuities 15,719 117.8 75,088 129.6 75,088 ̶Group life insurance ̶ ̶ 5,104 91.1 5,104 ̶Group annuities ̶ ̶ ̶ ̶ ̶ ̶


2015

For the year ended March 31, Number AmountYoY change YoY change

Amount,of which,

new policies

Amount,of which,

increase fromconversion

Individual life insurance 578,831 111.8% ¥4,625,700 121.3% ¥4,625,700 ¥̶Individual annuities 27,823 177.0 145,926 194.3 145,926 ̶Group life insurance ̶ ̶ 5,291 103.7 5,291 ̶Group annuities ̶ ̶ ̶ ̶ ̶ ̶

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- 02 Annualized premiumsPolicy amount in force


2014 2015

As of March 31, AmountChange from


March 31, 2014Individual life insurance ¥680,005 103.9% ¥714,620 105.1%Individual annuities 16,980 111.6 21,107 124.3Total ¥696,986 104.0% ¥735,728 105.6%　Of which, medical protection, living benefit 　 protection and other products 167,075 105.3 172,800 103.4

New policies(Millions of yen, %)

2014 2015For the years ended March 31, Amount YoY change Amount YoY changeIndividual life insurance ¥61,269 86.2% ¥71,795 117.2%Individual annuities 2,723 124.1 4,816 176.9Total ¥63,992 87.3% ¥76,612 119.7%　Of which, medical protection, living benefit 　 protection and other products 13,486 73.3 15,285 113.3

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 and other products” indicates the portion of annualized premiums for medical protection benefits (hospital-ization benefits, surgical procedure benefits, etc.) and products with living benefit protection (benefits for specific illness, nursing care benefits, etc.).



2- 03 Policy amount in force and new policy amount by productPolicies and policy amount in force by product (Millions of yen)

2014 2015As of March 31, Number Amount Number AmountIndividual life insurance products

Pure death-protection insurance 4,743,523 ¥35,556,338 4,958,598 ¥37,129,771Variable life insurance (whole life type) 610,296 3,188,877 685,767 3,602,970U.S. dollar-denominated whole life insurance 18,494 165,529 46,680 476,044Modified payment whole life insurance 15,090 140,607 14,621 133,183Limited payment whole life insurance 332,430 2,711,866 338,058 2,710,522Family insurance 1,245 11,522 1,217 11,128Interest rate-sensitive whole life insurance 564,387 3,179,370 552,782 3,085,149Whole life insurance (no selection type) 4,317 7,738 4,092 7,255Living benefit insurance (whole life type) 511,682 1,763,371 532,627 1,831,852Living benefit whole life insurance (living standard type) ̶ ̶ 41,301 164,163Variable life insurance (term type) 1,352 44,305 1,288 43,018Family income insurance 221,528 5,764,089 245,845 6,340,146Living standard insurance 3,293 49,569 2,898 40,801Level premium plan term life insurance 86,423 1,783,849 83,600 1,709,811Decreasing term life insurance 68,650 1,297,123 69,811 1,321,041Living benefit insurance (term type) 58,577 534,460 70,823 658,024Level premium plan term life insurance (non-smoker preferred risk) 18,558 755,669 18,101 743,221Decreasing term life insurance (non-smoker preferred risk) 26,182 578,534 24,289 502,884Family income insurance (non-smoker preferred risk) 51,431 1,477,624 48,267 1,316,593Increasing term life insurance 71 6,110 47 5,395Long-term level premium plan term life insurance (with disability benefit) 35,922 1,619,192 43,121 1,985,996Increasing term life insurance (reduced surrender value) 3,349 116,349 3,102 108,573Level premium plan term life insurance (no surrender value) 42,747 789,873 46,548 862,868Income protection insurance to cover three major diseases 17,294 13,261 19,819 15,888Semi-participating whole life nursing-care insurance 130,595 492,393 133,832 502,877Whole life nursing-care insurance (reduced surrender value) 12,528 2,441 15,910 3,210Cancer insurance 214,595 29,251 210,300 28,487Whole-life cancer insurance (08) 61,918 5,713 67,395 6,084Cancer hospitalization insurance 31,867 ̶ 30,821 ̶Comprehensive medical insurance 1,586,695 675,752 1,594,273 656,479Long-term comprehensive medical insurance 11,946 5,025 11,308 4,787Semi-participating living standard insurance (joint type) 61 1,221 55 1,089Term riders and others [522,914] 8,345,638 [527,854] 8,250,219

Mixed insurance 378,275 1,315,664 407,795 1,422,354Variable life insurance (limited term type) 47,944 137,093 61,492 184,187U.S. dollar-denominated endowment insurance 1,842 8,058 2,918 13,703U.S. dollar-denominated specialty endowment insurance 2,242 9,485 3,411 18,183Endowment insurance 258,380 983,264 267,362 1,006,238Semi-participating endowment insurance 67,867 177,764 66,251 173,342Specialty endowment insurance ̶ ̶ 6,361 26,699

Pure endowment insurance 1,114,202 1,756,085 1,186,292 1,838,892Educational endowment insurance 13,317 15,680 73,793 79,087Semi-participating educational endowment insurance 1,100,885 1,740,405 1,112,499 1,759,805Living benefit rider [̶] ̶ ̶ ̶

Total individual life insurance products 6,236,000 38,628,089 6,552,685 40,391,018Individual annuity products

Semi-participating individual annuities 55,941 247,101 64,138 282,646Individual variable annuities 30,281 160,834 46,192 250,875Others 8,191 58,979 9,089 64,160Total individual annuity products 94,413 466,915 119,419 597,682

Group life insurance productsGroup term life insurance 95,087 233,526 93,235 178,128Group welfare term life insurance 134,103 75,088 126,811 69,746Group credit life insurance 1,729,468 1,096,603 1,599,340 1,194,312Annuity payment rider 45 18 35 10Total group life insurance products 1,958,703 1,405,237 1,819,421 1,442,198

Group annuity productsNew-type corporate annuities 25,437 3,872 21,525 2,505Defined contribution corporate annuities 159,268 51,324 59,871 14,704Total group annuity products 184,705 55,196 81,396 17,210

Medical protection insurance (group-type) ̶ ̶ ̶ ̶Reinsurance recipients ̶ ̶ ̶ ̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump sum nursing-care riders every five years.”

2. The total number of policies in force for “term riders and others” and “living benefit rider” is excluded from total individual life insurance products. 3. “Semi-participating individual annuities” and “Individual variable annuities” under individual annuity products refer to the policies for which annuity

payments have not yet commenced. The amounts of policies for which annuity payments have not yet commenced are the funds to be held at the time annuity payments commence. 4. “Others” under individual annuity products include “semi-participating nursing-care riders,” “semi-participating fixed individual annuity riders,” and the

policies for which annuity payments have commenced. The policy amounts of the policies for which annuity payments have commenced are those of outstanding policy reserves. 5. The numbers of policies for group life insurance products, group annuity products, medical protection insurance (group-type) and “reinsurance

recipients” reflect the total numbers of insured parties. 6. The amount of “Annuity payment rider” under group life insurance products 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.

7. The policy amount in force for group annuity products is equal to the amount of outstanding policy reserves. 8. The amount of medical protection insurance (group-type) is equal to the daily benefits for hospitalization.



New policies and new policy amount by product(Millions of yen)

2014 2015For the years ended March 31, Number Amount Number AmountIndividual life insurance products

Pure death-protection insurance 369,707 ¥3,424,239 434,256 ¥4,321,409Variable life insurance (whole life type) 48,549 213,026 91,162 444,259U.S. dollar-denominated whole life insurance 18,725 164,923 29,162 265,734Modified payment whole life insurance 1 10 ̶ ̶Limited payment whole life insurance 13,610 70,372 12,795 69,174Family insurance ̶ ̶ ̶ ̶Interest rate-sensitive whole life insurance 21,388 121,846 6,714 38,968Whole life insurance (no selection type) 314 463 267 408Living benefit insurance (whole life type) 71,722 273,274 44,824 172,252Living benefit whole life insurance (living standard type) ̶ ̶ 41,636 165,826Variable life insurance (term type) 28 1,547 ̶ ̶Family income insurance 28,617 868,575 41,925 1,254,219Living standard insurance ̶ ̶ ̶ ̶Level premium plan term life insurance 4,107 89,827 5,196 106,237Decreasing term life insurance 7,430 190,682 6,394 171,229Living benefit insurance (term type) 13,035 129,636 19,938 191,091Level premium plan term life insurance (non-smoker preferred risk) 919 46,356 1,147 61,399Decreasing term life insurance (non-smoker preferred risk) ̶ ̶ ̶ ̶Family income insurance (non-smoker preferred risk) ̶ ̶ ̶ ̶Increasing term life insurance ̶ ̶ ̶ ̶Long-term level premium plan term life insurance (with disability benefit) 7,982 373,702 9,431 460,524Increasing term life insurance (reduced surrender value) 231 6,658 180 6,330Level premium plan term life insurance (no surrender value) 7,520 147,705 7,242 141,832Income protection insurance to cover three major diseases 3,786 3,067 4,285 4,191Semi-participating whole life nursing-care insurance 12,916 48,199 8,532 33,144Whole life nursing-care insurance (reduced surrender value) 4,369 928 4,214 925Cancer insurance 3,775 365 4,541 482Whole-life cancer insurance (08) 8,729 761 8,839 769Cancer hospitalization insurance 2,071 ̶ 2,454 ̶Comprehensive medical insurance 89,883 19,756 83,378 16,708Long-term comprehensive medical insurance ̶ ̶ ̶ ̶Semi-participating living standard insurance (joint type) ̶ ̶ ̶ ̶Term riders and others [36,234] 652,550 [37,807] 715,699

Mixed insurance 91,693 304,877 54,786 194,725Variable life insurance (limited term type) 8,095 23,461 16,235 50,354U.S. dollar-denominated endowment insurance 1,870 7,954 1,134 4,224U.S. dollar-denominated specialty endowment insurance 2,272 9,417 1,242 6,933Endowment insurance 76,511 254,597 27,792 99,207Semi-participating endowment insurance 2,945 9,446 1,916 6,970Specialty endowment insurance ̶ ̶ 6,467 27,034

Pure endowment insurance 56,546 85,174 89,789 109,565Educational endowment insurance 13,326 15,693 60,953 64,004Semi-participating educational endowment insurance 43,220 69,481 28,836 45,560Living benefit rider [̶] ̶ ̶ ̶

Total individual life insurance products 517,946 3,814,291 578,831 4,625,700Individual annuity products

Semi-participating individual annuities 10,486 45,780 10,252 46,040Individual variable annuities 5,233 29,308 17,571 99,885Others ̶ ̶ ̶ ̶Total individual annuity products 15,719 75,088 27,823 145,926

Group life insurance products Group term life insurance 828 6 2,162 4,248Group welfare term life insurance 14,997 5,098 764 1,043Group credit life insurance ̶ ̶ ̶ ̶Annuity payment rider ̶ ̶ ̶ ̶Total group life insurance products 15,825 5,104 2,926 5,291

Group annuity products New-type corporate annuities ̶ ̶ ̶ ̶Defined contribution corporate annuities ̶ ̶ ̶ ̶Total group annuity products ̶ ̶ ̶ ̶

Medical protection insurance (group-type) ̶ ̶ ̶ ̶Reinsurance recipients ̶ ̶ ̶ ̶

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefit whole life policy riders” and “semi-participating lump sum nursing-care riders every five years.”

2. The total number of policies in force for “term riders and others” and “living benefit rider” is excluded from total individual life insurance products. 3. Figures for individual annuity products show the funds to be held at the time annuity payments are to commence for policies. 4. The number of new policies for group life insurance products, group annuity products, medical protection insurance (group-type) and “reinsurance

recipients” reflect the total number of insured parties. 5. The new policy amount for group annuity products is equal to the sum of the initial premium payments. 6. The amount of medical protection insurance (group-type) is equal to the daily benefits for hospitalization.



2- 04 Policy amount in force by insurance function(Millions of yen)

As of March 31, 2014 2015Death protection

Ordinary deathIndividual life insurance ¥36,872,003 ¥38,552,125Individual annuities [108,424] [144,044]Group life insurance 1,405,218 1,442,187Group annuities ̶ ̶Total 38,277,222 39,994,313

Accidental death Individual life insurance [6,815,689] [6,590,527]Individual annuities ̶ ̶Group life insurance [730] [345]Group annuities ̶ ̶Total [6,816,420] [6,590,873]

Death protection with other conditions Individual life insurance [1,345,860] [1,279,418]Individual annuities ̶ ̶Group life insurance ̶ ̶Group annuities ̶ ̶Total [1,345,860] [1,279,418]

Living protection Maturity and living benefits

Individual life insurance 1,756,085 1,838,892Individual annuities 408,466 534,163Group life insurance ̶ ̶Group annuities ̶ ̶Total 2,164,552 2,373,056

Annuities Individual life insurance ̶ ̶Individual annuities [55,275] [70,474]Group life insurance [7] [5]Group annuities ̶ ̶Total [55,282] [70,479]

Others Individual life insurance ̶ ̶Individual annuities 58,448 63,518Group life insurance 18 10Group annuities 55,196 17,210Total 113,664 80,740

Hospitalization protection Accidental hospitalization

Individual life insurance [18,095] [18,120]Individual annuities ̶ ̶Group life insurance [12] [9]Group annuities ̶ ̶Total [18,108] [18,130]

Sickness hospitalization Individual life insurance [18,095] [18,120]Individual annuities ̶ ̶Group life insurance ̶ ̶Group annuities ̶ ̶Total [18,095] [18,120]

Hospitalization with other conditions Individual life insurance [7,419] [7,251]Individual annuities ̶ ̶Group life insurance ̶ ̶Group annuities ̶ ̶Total [7,419] [7,251]

Notes: 1. Figures in [ ] show additional coverage and rider coverage attached to primary policies. However, ordinary death protection including “term riders and others” is recorded under primary coverage. 2. Figures for maturity and living benefits of living protection show the funds to be held at the time annuity payments are to commence for policies for

individual annuities and group life insurance (annuity payment rider) for which annuity payments have not yet commenced. 3. Figures for annuities within living protection show annual annuity amounts. 4. Figures for “Others” within living protection show policy reserves for individual annuities (after commencement of annuity payments), group life

insurance (after commencement of annuity payments of annuities payment rider) and group annuities. 5. Figures for hospitalization protection show the daily benefits for hospitalization. 6. Figures for total in sickness hospitalization within hospitalization protection show the total including primary coverage and rider coverage. *Figures for primary coverage, if any, are shown without [ ]. If there is no primary coverage, figures for additional coverage are shown in [ ].



2- 05 Number of policies in force by insurance function

As of March 31, 2014 2015

Disability protection 　Individual life insurance 496,356 535,195

　Individual annuities ̶ ̶　Group life insurance 49,321 48,142

　Group annuities ̶ ̶　Total 545,677 583,337

Surgery protection　Individual life insurance 1,677,071 1,680,530

　Individual annuities ̶ ̶　Group life insurance ̶ ̶　Group annuities ̶ ̶　Total 1,677,071 1,680,530

2- 06 Policy amount in force by type of individual life insurance and individual annuities(Millions of yen)

As of March 31, 2014 2015

Pure death-protection insurance

Whole life insurance ¥ 7,980,007 ¥ 8,419,299

Whole life insurance with term rider ̶ ̶

Term life insurance 14,722,876 15,554,558

Total 35,556,338 37,129,771

Mixed insurance

Endowment insurance 1,169,086 1,193,284

Endowment insurance with term rider ̶ ̶

Term life insurance with living benefits ̶ ̶

Total 1,315,664 1,422,354

Pure endowment insurance 1,756,085 1,838,892

Annuity products

Individual annuities 466,915 597,682

Riders for disaster and disease

Rider to cover accidental death 3,484,766 3,347,551

Injury rider 3,330,923 3,242,975

Comprehensive protection riders covering hospitalization 489 467

Comprehensive protection riders covering hospitalization for family 21 19

Comprehensive protection riders covering lifestyle-related disease 52 50

Medical treatment rider for adults 1,295 1,252

Medical treatment rider for women 1,281 1,259

Lifestyle diseases medical treatment rider 16 15

New medical treatment rider for women 4 4

Cancer rider 241 243

Rider to cover initial period of hospitalization 6,514 6,628Notes: 1. The amount of individual 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. 2. Figures for hospitalization protection show the daily benefits for hospitalization.



2- 07 Change in policy amount in forceIndividual life insurance


2014 2015

For the years ended March 31, Number Amount Number Amount

Balance at the beginning of the period 5,958,963 ¥37,366,333 6,236,000 ¥38,628,089

New policy amount 517,946 3,814,291 578,831 4,625,700

Increase from renewal 15,013 55,283 13,859 49,869

Increase from reinstatement 19,558 111,830 17,796 105,965

Increase in policy amount [248] 2,523 [309] 2,241

Increase from conversion ̶ ̶ ̶ ̶

Increase for other reasons 13,612 191,967 12,015 242,220

Decrease from death 9,719 60,056 10,379 62,727

Decrease for maturity 30,587 114,426 30,525 113,452

Decrease in policy amount [37,478] 171,793 [42,765] 190,478

Decrease from conversion ̶ ̶ ̶ ̶

Surrender amount 193,104 1,495,343 214,052 1,857,459

Lapse amount 37,362 224,789 34,294 215,454

Decrease for other reasons 18,320 847,729 16,566 823,495

Balance at the end of the period 6,236,000 38,628,089 6,552,685 40,391,018

[Increase ratio] [4.6%] [3.4%] [5.1%] [4.6%]

Net increase 277,037 1,261,755 316,685 1,762,928

[Increase ratio] [(22.3%)] [(23.9%)] [14.3%] [39.7%]Note: Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance.

Individual annuities(Millions of yen, %)

2014 2015


Balance at the beginning of the period 82,261 ¥412,709 94,413 ¥466,915

New policy amount 15,719 75,088 27,823 145,926

Increase from reinstatement 141 632 189 932

Increase from conversion ̶ ̶ ̶ ̶

Increase for other reasons 1,311 4,019 1,718 5,933

Decrease from death 61 317 65 354

Decrease for maturity 528 325 799 641

Decrease in annuity amount [401] 1,858 [415] 1,615

Decrease from conversion ̶ ̶ ̶ ̶

Surrender amount 3,416 18,231 2,752 14,060

Lapse amount 245 1,122 308 1,487

Decrease for other reasons 769 3,679 800 3,864

Balance at the end of the period 94,413 466,915 119,419 597,682

[Increase ratio] [14.8%] [13.1%] [26.5%] [28.0%]

Net increase 12,152 54,205 25,006 130,767

[Increase ratio] [13.6%] [26.2%] [105.8%] [141.2%]Note: The above amounts 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.



Group life insurance(Millions of yen, %)

2014 2015


Balance at the beginning of the period 2,128,076 ¥1,345,632 1,958,703 ¥1,405,237New policy amount 15,825 5,104 2,926 5,291Increase from renewal 216,254 305,056 216,872 242,642Increase from reinstatement ̶ ̶ ̶ ̶Increase in policy amount (increase by additional purchase of riders) 77,269 181,637 70,166 215,697Increase in policy amount [1,392] 508 [2,218] 559Increase for other reasons 86 673 113 5,179Decrease from death 10,246 1,661 9,525 1,825Decrease for maturity 242,685 308,324 229,804 302,788Withdrawals 224,734 56,785 189,095 55,309Decrease in policy amount [489,465] 65,559 [549,031] 67,802Surrender amount 970 790 549 2,289Lapse amount 29 107 151 2,210Decrease for other reasons 143 149 235 182Balance at the end of the period 1,958,703 1,405,237 1,819,421 1,442,198[Increase ratio] [(8.0%)] [4.4%] [(7.1%)] [2.6%]Net increase (169,373) 59,604 (139,282) 36,961[Increase ratio] [̶] [(22.5%)] [̶] [(38.0%)]

Notes: 1. Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance. 2. The number of policies reflects the total number of insured parties.

Group annuities(Millions of yen, %)

2014 2015


Balance at the beginning of the period 191,934 ¥56,503 184,705 ¥55,196New policy amount ̶ ̶ ̶ ̶Annuity payment 244,140 2,097 234,801 2,022Lump-sum payment 8,398 2,201 4,579 1,073Surrender amount ̶ ̶ 91,023 35,950Balance at the end of the period 184,705 55,196 81,396 17,210[Increase ratio] [(3.8%)] [(2.3%)] [(55.9%)] [(68.8%)]Net increase (7,229) (1,306) (103,309) (37,986)[Increase ratio] [̶] [̶] [̶] [̶]

Notes: 1. The amounts at the beginning and end of the period are equal to policy reserves at those times. 2. New policy amounts are equal to the sum of initial premium payments. 3. The number of policies reflects the total number of insured parties.

2- 08 Dividends to policyholders1. Standard dividend yields for semi-participating individual life Insurance and individual annuities with policyholder dividends every

five years


Assumed interest rates of 2.00% or less　Level-premium 1.55% 1.55%　Lump-sum premium and others 1.20% 1.20%Assumed interest rates of more than 2.00%　Level-premium 1.40% 1.40%　Lump-sum premium and others 1.05% 1.05%

2. Below is an example of policyholder dividends for semi-participating whole life nursing-care insurance (before annuity payments commence) using figures for the fiscal year ended March 31, 2015.

<Example> Semi-participating whole life nursing-care insurance (before nursing care annuity payments commence)Entered at 30, male, lump-sum payment, 10x death benefit, basic care annuity amount of ¥0.5 million



(Yen)

Contract Date Assumed interest rate Years elapsed Ongoing policyPolicies to which nursing care applies,

ending at death of policyholderNov. 2, 2014 1.00% 1 year ¥̶ ¥ 7,533Nov. 2, 2013 1.00 2 ̶ 15,185Nov. 2, 2012 1.50 3 ̶ 0Nov. 2, 2011 1.50 4 ̶ 0Nov. 2, 2010 1.50 5 0 0Nov. 2, 2009 1.50 6 ̶ 0Nov. 2, 2008 1.50 7 ̶ 0Nov. 2, 2007 1.50 8 ̶ 0Nov. 2, 2006 1.50 9 ̶ 0

Notes: 1. The “Policies to which nursing care applies, ending at death of policyholder” column shows the amount receivable for nursing care or upon death. The number of years elapsed is the number through November 2, 2015.

2. The above-stated dividend amount is the sum of the pro-rated dividend amount (policy reserve × dividend participation ratio) and interest through November 2, 2015 (excluding dividends already paid).

Dividend participation ratio = Standard dividend yield – Assumed interest rate

3. Standard dividend yield on group annuitiesThe standard dividend yield on group annuities is 1.30%, using figures for the fiscal year ended March 31, 2015.

Note: Dividend participation is calculated as follows: Dividend amount = Policy reserves × Dividend participation ratio Dividend participation ratio = Standard dividend yield – Assumed interest rate

4. For group term life insurance and other products, a reserve for policyholders’ dividends is accumulated in accordance with each product’s characteristics.

3 Indicators for Insurance Policies

3- 01 Increase ratio of policy amount in force(%)

For the years ended March 31, 2014 2015Individual life insurance 3.4% 4.6%Individual annuities 13.1 28.0Group life insurance 4.4 2.6Group annuities (2.3) (68.8)

3- 02 Average policy amount for new policies and policies in force (individual life insurance)(Thousands of yen)

For the years ended March 31, 2014 2015Average policy amount for new policies ¥7,364 ¥7,991Average policy amount for policies in force 6,194 6,164

Note: The above figures do not include the increase from the conversion for average policy amount for new policies.

3- 03 Ratio of new policy amount (to policy amount in force at the beginning of the fiscal year)(%)

For the years ended March 31, 2014 2015Individual life insurance 10.2% 12.0%Individual annuities 21.0 35.7Group life insurance 0.4 0.4

Note: The above figures do not include the increase from the conversion.

3- 04 Lapse and surrender rate (to policy amount in force at the beginning of the fiscal year)The lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of cancellations and lapses modified for decreases, increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.

(%)

For the years ended March 31, 2014 2015Individual life insurance 4.76% 5.58%Individual annuities 5.75 3.97Subtotal 4.77 5.56Group life insurance 4.90 5.11

The lapse and surrender rate is expressed as a ratio calculated by dividing the amounts of cancellations and lapses not modified for decreases, increases or reinstatements by the total policy amount in force at the beginning of the fiscal year.

(%)

For the years ended March 31, 2014 2015Individual life insurance + Individual annuities 4.61% 5.35%



3- 05 Average premium for new policies of individual life insurance (monthly payment contracts)(Yen)

For the years ended March 31, 2014 2015Average premiums for new policies ¥11,311 ¥12,200

Note: The above figures do not include increase from conversion.

3- 06 Mortality rate (individual life insurance: primary coverage)(‰)

For the years ended March 31, 2014 2015Based on number of policies 1.59‰ 1.62‰Based on policy amount 1.58 1.59

3- 07 Incidence rates of riders (individual life insurance)(‰)

2014 2015

For the years ended March 31,Number of

policies Policy amountNumber of

policies Policy amount

Accidental death protection 0.095‰ 0.101‰ 0.063‰ 0.106‰Disability protection 0.126 0.041 0.095 0.027Accidental hospitalization protection 3.543 86.717 3.608 88.526Sickness hospitalization protection 36.157 588.196 36.673 596.877Lifestyle-related disease hospitalization protection 14.166 399.877 15.567 423.462Sickness and accidental surgery protection 40.357 43.526Lifestyle-related disease surgery protection 9.465 10.695

3- 08 Operating expense ratio (to insurance premiums)(%)

For the years ended March 31, 2014 2015Operating expense ratio 11.9% 12.7%

4 Indicators Related to Asset Management (General Account)

4- 01 Overview of asset management (general account)Overview of the asset management for the fiscal year ended March 31, 2015(1) Investment EnvironmentDuring the fiscal year ended March 31, 2015, the Japanese economy experienced a modest recovery. Economic growth was negative in the first half, as the consumption tax increase prompted a demand backlash, particularly in durable goods, while unseasonable summer weather held down personal consumption. In the second half, expanded quantitative easing measures introduced by the Bank of Japan (BOJ) in October 2014 prompted yen depreciation and a recovery in exports. In addition, falling crude oil prices led to an improved balance of trade, turning economic growth positive. Real GDP growth, year on year, was a negative 6.8% for the April–June quarter, followed by negative 2.0% in the July–September quarter. Economic growth turned positive thereafter, at 1.2% for the October–December quarter, and resulted in a positive 3.9%* for the January–March quarter. The Japanese bond market was affected significantly by the BOJ’s expansion of quantitative easing measures in October 2014. The BOJ announced plans to expand the monetary base and increase holdings of long-term Japanese government bonds (JGBs) and exchange-traded funds (ETFs) and to extend its average holding period for long-term JGBs to around 7–10 years. The market responded to the intro-duction of these policies with growing concern about liquidity, which prompted greater fluctuation in bond yields. Yields on 10-year JGBs, an indicator of long-term interest rates, fell to 0.201% at one point at the end of October 2014 following increased quantitative easing mea-sures. Yields turned back upward after that point, heading to 0.405% as of March 31, 2015 (down 0.237 percentage point year on year). Stock market performance was up substantially. Stock prices remained firm throughout the year on rising corporate performance and expectations of growing shareholder returns. The BOJ’s increased quantitative easing measures at the end of October 2014, combined with investment asset reallocations by the Government Pension Investment Fund and other public pension funds buoyed expectations of share purchases, driving up stock prices. As of March 31, 2015, the Nikkei Stock Average was ¥19,206.99, up ¥4,379.16 from its level on March 31, 2014. On foreign exchange markets, the yen continued to depreciate. In the first half of the year, movement against the U.S. dollar centered in a tight range around ¥103 against the dollar. Yen depreciation picked up pace, however, following the BOJ’s increased quantitative easing measures in October 2014, pushing the exchange rate down to ¥121.46 to the U.S. dollar at one point in December. Thereafter, observa-tions of a rise in U.S. interest rates, falling commodity prices and the introduction of quantitative easing measures in Europe caused the yen–dollar exchange rate to seesaw. As of March 31, 2015, the yen was trading at ¥120.13 to the U.S. dollar, depreciating ¥16.9 from ¥103.23, its level one year earlier.

*Second preliminary estimates



(2) Investment PolicySony Life’s investment policy is to understand the characteristics of insurance liabilities, and prioritize investment in the assets that meet such characteristics based on ALM (asset liability management, the comprehensive management of assets and liabilities). Specifically, Sony Life is investing primarily in ultra long-term JGBs with longer remaining maturity, to meet the long-term liabilities of life insurance policies, in an effort to maintain adequate control over the risks associated with interest rate fluctuations involved in such insurance liabilities. Meanwhile, it is Sony Life’s policy to limit its investment in risky assets including stocks.(3) Results of InvestmentAs of March 31, 2015, general account assets totaled ¥6,508.0 billion, up 8.8%, or ¥523.6 billion, from a year earlier. Within general account assets, Japanese government and corporate bonds totaled ¥5,606.8 billion (accounting for 86.2% of total general account assets), foreign bonds ¥105.5 billion (1.6%), Japanese stocks ¥42.4 billion (0.7%), monetary trusts ¥313.2 billion (4.8%), policy loans ¥162.3 billion (2.5%), real estate ¥117.7 billion (1.8%) and cash and deposits and call loans ¥56.8 billion (0.9%).

Portfolio of general account assetsGeneral account assets


2014 2015As of March 31, Amount % of total Amount % of total

Cash and deposits, call loans ¥ 32,617 0.5% ¥ 56,818 0.9%Securities repurchased under resale agreements ̶ ̶ ̶ ̶Pledged money for bond borrowing transaction ̶ ̶ ̶ ̶Monetary claims purchased ̶ ̶ ̶ ̶Securities under proprietary accounts ̶ ̶ ̶ ̶Monetary trusts 305,346 5.1 313,276 4.8Securities 5,334,049 89.1 5,783,292 88.9　Japanese government and corporate bonds 5,190,065 86.7 5,606,885 86.2　Japanese stocks 33,205 0.6 42,496 0.7　Foreign securities 106,752 1.8 131,627 2.0　　Bonds 79,835 1.3 105,556 1.6　　Stocks, etc. 26,916 0.4 26,070 0.4　Other securities 4,026 0.1 2,283 0.0Loans 154,219 2.6 162,399 2.5　Policy loans 154,180 2.6 162,397 2.5　Commercial loans 38 0.0 2 0.0Real estate 66,532 1.1 117,764 1.8Deferred tax assets 13,643 0.2 ̶ ̶Other assets 78,173 1.3 74,722 1.1Reserve for possible loan losses (242) (0.0) (268) (0.0)Total ¥5,984,341 100.0% ¥6,508,006 100.0%　Of which, foreign-currency-denominated assets 58,195 1.0 82,158 1.3

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.

Changes in general account assets by categories(Millions of yen)

For the years ended March 31, 2014 2015Cash and deposits, call loans ¥ (70,704) ¥ 24,201Securities repurchased under resale agreements ̶ ̶Pledged money for bond borrowing transaction ̶ ̶Monetary claims purchased ̶ ̶Securities under proprietary accounts ̶ ̶Monetary trusts (775) 7,929Securities 650,301 449,242　Japanese government and corporate bonds 629,017 416,819　Japanese stocks 2,099 9,290　Foreign securities 19,323 24,875　　Bonds 17,812 25,721　　Stocks, etc. 1,510 (845)　Other securities (138) (1,743)Loans 9,114 8,180　Policy loans 9,161 8,216　Commercial loans (47) (35)Real estate (3,769) 51,231Deferred tax assets (80) (13,643)Other assets (1,864) (3,451)Reserve for possible loan losses (6) (26)Total ¥582,215 ¥523,665　Of which, foreign-currency-denominated assets 16,438 23,963

Note: The amount for real estate is equivalent to the total amount of land, buildings and construction in progress.



4- 02 Investment yield by type of asset (general account)(%)


Cash and deposits, call loans 0.05% 0.06%

Securities repurchased under resale agreements ̶ ̶

Pledged money for bond borrowing transaction ̶ ̶

Monetary claims purchased ̶ ̶

Securities under proprietary accounts ̶ ̶

Monetary trusts 1.98 1.97

Securities 2.18 2.40　Japanese government and corporate bonds 2.06 2.17　Japanese stocks 2.22 3.35　Foreign securities 8.30 12.69

Loans 3.80 3.74　Commercial loans 0.64 0.59

Real estate 5.65 4.39

Total 2.20% 2.36%

Notes: 1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment income minus investment expenses under ordinary profit (loss).

2. Valuation gains for Article 112 of the Insurance Business Act of Japan are not accounted for.

4- 03 Average balance by type of asset (general account)(Millions of yen)


Cash and deposits, call loans ¥ 54,814 ¥ 63,624

Securities repurchased under resale agreements ̶ ̶

Pledged money for bond borrowing transaction ̶ ̶

Monetary claims purchased ̶ ̶

Securities under proprietary accounts ̶ ̶

Monetary trusts 268,611 268,749

Securities 4,900,002 5,433,180　Japanese government and corporate bonds 4,784,298 5,300,313　Japanese stocks 26,297 25,043　Foreign securities 86,600 105,299

Loans 149,675 158,224　Commercial loans 314 54

Real estate 64,367 93,211

Total ¥5,512,218 ¥6,093,806　Of which, overseas investment 87,825 106,324

4- 04 Investment income (general account)(Millions of yen)


Interest income and dividends ¥122,160 ¥133,592

Gains on securities under proprietary accounts ̶ ̶

Income from monetary trusts, net 5,311 5,283

Income from trading securities, net ̶ 507

Gains on sale of securities 773 8,899

Gains on redemption of securities 2 1

Gains on derivatives, net 172 ̶

Foreign exchange gains, net 1,183 5,068

Reversal of reserve for possible loan losses ̶ ̶

Other investment income 47 7

Total ¥129,652 ¥153,359



4- 05 Investment expenses (general account)(Millions of yen)


Interest expense ¥ 48 ¥ 31Losses on securities under proprietary accounts ̶ ̶Losses on monetary trusts, net ̶ ̶Losses on trading securities, net ̶ ̶Losses on sale of securities 528 0Devaluation losses on securities ̶ ̶Losses on redemption of securities ̶ 0Losses on derivatives, net ̶ 2,099Foreign exchange losses ̶ ̶Provision for reserve for possible loan losses 6 32Write-off of loans ̶ ̶Depreciation of real estate for rent and others 2,077 1,931Other investment expenses 5,845 5,630Total ¥8,506 ¥9,727

4- 06 Interest income and dividends (general account)(Millions of yen)


Interest income from deposits ¥ 0 ¥ 0Interest income and dividends from securities 106,187 117,276　Interest income from Japanese bonds 98,588 107,383　Dividends from Japanese stocks 397 464　Interest income and dividends from foreign securities 6,740 8,998Interest income from loans 5,691 5,921Income from real estate for rent 10,250 10,327Total, including others ¥122,160 ¥133,592

4- 07 Gains on sale of securities (general account)(Millions of yen)


Gains on sale of Japanese bonds (including JGBs) ¥ 1 ¥7,601Gains on sale of Japanese stocks, etc. 673 1,298Gains on sale of foreign securities 98 ̶Total ¥773 ¥8,899

4- 08 Losses on sale of securities (general account)(Millions of yen)


Losses on sale of Japanese bonds (including JGBs) ¥ ̶ ¥ 0Losses on sale of Japanese stocks, etc. 487 ̶Losses on sale of foreign securities 41 ̶Total ¥528 ¥ 0

4- 09 Devaluation losses on securities (general account)(Millions of yen)


Devaluation losses on Japanese bonds (including JGBs) ¥̶ ¥̶Devaluation losses on Japanese stocks, etc. ̶ ̶Devaluation losses on foreign securities ̶ ̶Total ¥̶ ¥̶



4- 10 Securities (general account)(Millions of yen, %)


Japanese government bonds ¥5,158,972 96.7% ¥5,585,685 96.6%Japanese municipal bonds 1,003 0.0 ̶ ̶Japanese corporate bonds 30,089 0.6 21,200 0.4　Of which, public corporation bonds 27,016 0.5 21,200 0.4Japanese stocks 33,205 0.6 42,496 0.7Foreign securities 106,752 2.0 131,627 2.3　Bonds 79,835 1.5 105,556 1.8　Stocks, etc. 26,916 0.5 26,070 0.5Other securities 4,026 0.1 2,283 0.0Total ¥5,334,049 100.0% ¥5,783,292 100.0%

4- 11 Balance of securities by remaining period (general account)(Millions of yen)

2014


1 year or less


3 years


5 years


7 years


10 years

Due after 10 years

(including no fixed maturity) Total

Securities ¥20,374 ¥21,985 ¥29,574 ¥16,389 ¥70,532 ¥5,175,193 ¥5,334,049　Japanese government bonds 10,586 12,297 15,285 ̶ 65,346 5,055,455 5,158,972　Japanese municipal bonds 1,003 ̶ ̶ ̶ ̶ ̶ 1,003　Japanese corporate bonds 6,718 2,058 105 ̶ 1,639 19,566 30,089　Japanese stocks ̶ ̶ ̶ ̶ ̶ 33,205 33,205　Foreign securities 2,007 7,629 13,045 16,389 3,248 64,432 106,752　　Bonds ̶ ̶ 5,099 12,371 1,931 60,432 79,835　　Stocks, etc. 2,007 7,629 7,945 4,017 1,316 4,000 26,916　Other securities 58 ̶ 1,136 ̶ 297 2,533 4,026Monetary claims purchased ̶ ̶ ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶ ̶ ̶Total ¥20,374 ¥21,985 ¥29,574 ¥16,389 ¥70,532 ¥5,175,193 ¥5,334,049

(Millions of yen)

2015


1 year or less


3 years


5 years


7 years


10 years

Due after 10 years

(including no fixed maturity) Total

Securities ¥4,028 ¥24,052 ¥11,155 ¥22,101 ¥233,584 ¥5,488,369 ¥5,783,292　Japanese government bonds ̶ 14,960 ̶ 5,447 228,796 5,336,480 5,585,685　Japanese municipal bonds ̶ ̶ ̶ ̶ ̶ ̶ ̶　Japanese corporate bonds ̶ ̶ ̶ ̶ 1,635 19,564 21,200　Japanese stocks ̶ ̶ ̶ ̶ ̶ 42,496 42,496　Foreign securities 4,028 9,091 9,982 16,207 3,152 89,165 131,627　　Bonds ̶ 2,022 4,044 13,413 2,410 83,665 105,556　　Stocks, etc. 4,028 7,069 5,937 2,793 741 5,500 26,070　Other securities ̶ ̶ 1,173 446 ̶ 663 2,283Monetary claims purchased ̶ ̶ ̶ ̶ ̶ ̶ ̶Certificates of deposit ̶ ̶ ̶ ̶ ̶ ̶ ̶Others ̶ ̶ ̶ ̶ ̶ ̶ ̶Total ¥4,028 ¥24,052 ¥11,155 ¥22,101 ¥233,584 ¥5,488,369 ¥5,783,292

Note: Items treated as securities based on “financial product accounting standards” (Corporate Accounting Standards, No. 10) are included.

4- 12 Fiscal year-end yields on bonds (general account)(%)

As of March 31, 2014 2015Japanese government and corporate bonds 2.08% 2.04%Foreign bonds 3.70 3.09



4- 13 Japanese stock holdings by industry (general account)(Millions of yen, %)

2014 2015As of March 31, Amount Composition Amount Composition

Fisheries, agriculture and forestry ¥ ̶ ̶% ¥ ̶ ̶%Mining ̶ ̶ ̶ ̶Construction 1,838 5.5 2,089 4.9Manufacturing industries　Food products 554 1.7 1,153 2.7　Textiles and clothing ̶ ̶ ̶ ̶　Pulp and paper ̶ ̶ ̶ ̶　Chemicals 750 2.3 1,284 3.0　Medical products 736 2.2 1,276 3.0　Oil and coal products ̶ ̶ ̶ ̶　Rubber products ̶ ̶ ̶ ̶　Glass and stone products ̶ ̶ 108 0.3　Steel ̶ ̶ ̶ ̶　Non-steel metals 357 1.1 ̶ ̶　Metal products ̶ ̶ 316 0.7　Machinery 1,153 3.5 1,654 3.9　Electric appliances 4,150 12.5 5,207 12.3　Transportation vehicles 2,304 6.9 3,256 7.7　Precision machinery 241 0.7 362 0.9　Others 88 0.3 313 0.7Electric and gas utilities 631 1.9 687 1.6Transportation/information telecommunications　Ground transportation 1,062 3.2 1,760 4.1　Water transportation ̶ ̶ ̶ ̶　Air transportation ̶ ̶ ̶ ̶　Warehouses/transportation ̶ ̶ ̶ ̶　Information/telecommunications 3,041 9.2 3,314 7.8Commerce　Wholesalers 277 0.8 ̶ ̶　Retailers 1,482 4.5 2,666 6.3Financial services/insurance　Banking ̶ ̶ ̶ ̶　Securities and commodity futures trading ̶ ̶ ̶ ̶　Insurance 12,000 36.1 13,000 30.6　Other financial services 846 2.6 984 2.3Real estate ̶ ̶ ̶ ̶Service companies 1,685 5.1 3,058 7.2Total ¥33,205 100.0% ¥42,496 100.0%

Note: Categories of stock holdings by industry are based on the classification by the Securities Identification Code Committee of Japan.

4- 14 Loans (general account)(Millions of yen)

As of March 31, 2014 2015Policy loans ¥154,180 ¥162,397　　Policyholder loans 138,236 146,442　　Automatic premium loans 15,944 15,954Commercial loans 38 2　[Of which, loans to borrowers located outside of Japan] [̶] [̶]　　Corporate loans ̶ ̶　　　[Of which, corporate loans̶domestic] [̶] [̶]　　Loans to national, international and government-affiliated organizations ̶ ̶　　Loans to public entities ̶ ̶　　Mortgage loans ̶ ̶　　Consumer loans ̶ ̶　　Other loans 38 2Total ¥154,219 ¥162,399



4- 15 Tangible fixed assets (general account)Tangible fixed assets (Millions of yen, %)

2014

For the year ended March 31,

Balance at the beginning of

the periodIncrease in the period

Decrease in the period

Amount of depreciation in

the period


Amount of accumulated depreciation

% of accumulated depreciation

Land ¥31,089 ¥ ̶ ¥ 986 ¥ ̶ ¥30,103 ¥ ̶ ̶%Buildings 39,212 464 1,118 2,129 36,429 21,972 37.6

[31]Leased assets 185 20 171 14 19 0 1.7Construction in progress ̶ ̶ ̶ ̶ ̶ ̶ ̶Other tangible assets 482 216 10 140 548 1,524 73.6

[5]Total ¥70,969 ¥700 ¥2,285 ¥2,284 ¥67,100 ¥23,497 38.8%

[36]　Of which, investment 　 and rental properties 67,231 346 2,223 2,021 63,334 21,050 37.8

(Millions of yen, %)2015

For the year ended March 31,

Balance at the beginning of

the periodIncrease in the period

Decrease in the period

Amount of depreciation in

the period


Amount of accumulated depreciation

% of accumulated depreciation

Land ¥30,103 ¥52,903 ¥̶ ¥ ̶ ¥ 83,007 ¥ ̶ ̶%Buildings 36,429 374 40 2,005 34,757 23,849 40.7

[10]Leased assets 19 ̶ ̶ 4 15 4 21.7Construction in progress ̶ ̶ ̶ ̶ ̶ ̶ ̶Other tangible assets 548 49 1 144 452 1,631 78.3

[0]Total ¥67,100 ¥53,327 ¥42 ¥2,154 ¥118,232 ¥25,485 42.0%

[10]　Of which, investment 　 and rental properties 63,334 53,119 13 1,887 114,552 22,902 41.0

Note: Figures in [ ] in the “Decrease in the period” describe the amount of impairment losses.

Balance of real estate and number of buildings for rent (Millions of yen)

As of March 31, 2014 2015Real estate balance ¥66,532 ¥117,764　For corporate use 3,442 3,397　For rent 63,090 114,366Number of buildings for rent 3 3

4- 16 Overseas investment (general account)Details by assets (Millions of yen, %)


Assets denominated in foreign currency (yen amount not fixed)　Foreign bonds ¥ 36,015 33.6% ¥ 61,258 46.0%　Foreign stocks 1,725 1.6 2,076 1.6　Cash, deposits and others 20,453 19.1 18,824 14.1　Subtotal 58,195 54.3 82,158 61.7Assets denominated in foreign currency (yen amount fixed)　Foreign bonds ̶ ̶ ̶ ̶　Cash, deposits and others ̶ ̶ ̶ ̶　Subtotal ̶ ̶ ̶ ̶Assets denominated in yen 　Loans to borrowers located outside of Japan ̶ ̶ ̶ ̶　Foreign bonds and others 49,059 45.7 51,094 38.3　Subtotal 49,059 45.7 51,094 38.3Total 　Overseas investment ¥107,254 100.0% ¥133,253 100.0%

Note: “Assets denominated in foreign currency (yen amount fixed)” are recorded under assets on the balance sheets at the fixed yen value that was determined at settlement with foreign exchange forward contracts.



Overseas investment by region(Millions of yen, %)

2014

Foreign securitiesLoans to borrowers

located outside of JapanOf which,

foreign bondsOf which,

foreign stocks, etc.

As of March 31, Amount % of total Amount % of total Amount % of total Amount % of total

North America ¥ 37,125 34.8% ¥29,742 37.3% ¥ 7,383 27.4% ¥̶ ̶%

Europe 53,980 50.6 46,847 58.7 7,132 26.5 ̶ ̶

Oceania 3,246 3.0 3,246 4.1 ̶ ̶ ̶ ̶

Asia ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Latin America 12,400 11.6 ̶ ̶ 12,400 46.1 ̶ ̶

Middle East ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Africa ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

International organizations ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Total ¥106,752 100.0% ¥79,835 100.0% ¥26,916 100.0% ¥̶ ̶%


2015

Foreign securitiesLoans to borrowers

located outside of JapanOf which,

foreign bondsOf which,

foreign stocks, etc.

As of March 31, Amount % of total Amount % of total Amount % of total Amount % of total

North America ¥ 61,032 46.4% ¥ 54,129 51.3% ¥ 6,902 26.5% ¥̶ ̶%

Europe 52,492 39.9 47,160 44.7 5,332 20.5 ̶ ̶

Oceania 4,267 3.2 4,267 4.0 ̶ ̶ ̶ ̶

Asia ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Latin America 13,835 10.5 ̶ ̶ 13,835 53.1 ̶ ̶

Middle East ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Africa ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

International organizations ̶ ̶ ̶ ̶ ̶ ̶ ̶ ̶

Total ¥131,627 100.0% ¥105,556 100.0% ¥26,070 100.0% ¥̶ ̶%

Foreign-currency-denominated assets by currency(Millions of yen, %)

2014 2015

As of March 31, Amount % of total Amount % of total

U.S. dollar ¥45,301 77.8% ¥70,505 85.8%

Euro 9,148 15.7 7,020 8.5

Australian dollar 3,270 5.6 4,306 5.2

British pound 469 0.8 324 0.4

Offshore renminbi 3 0.0 ̶ ̶

New Taiwanese dollar 1 0.0 2 0.0

Total ¥58,195 100.0% ¥82,158 100.0%

4- 17 Yield on overseas investments (general account)(%)


Yield on overseas investments 8.19% 12.57%Note: Yield on overseas investments is a total of foreign-currency-denominated assets and yen-denominated assets.



5 Status of Insurance Claims Paying Ability

5- 01 Solvency margin ratio(Millions of yen)

As of March 31, 2014 2015(A) Total solvency margin ¥ 954,157 ¥1,078,363　Common stock, etc. 274,027 301,193　Reserve for price fluctuations 41,556 42,845　Contingency reserve 63,671 68,707　General reserve for possible loan losses 0 0　Net unrealized gains on other securities multiplied by 90% (100% if losses) 118,354 158,917　Net unrealized gains on real estate multiplied by 85% (100% if losses) 75 15,325　Amount excluded from deferred tax assets ̶ ̶　Unallotted portion of reserve for policyholders’ dividends 174 212　Deferred tax assets 78,868 81,201　Excess amount of policy reserves based on Zillmer method 400,056 429,392　Subordinated debt ̶ ̶　The portion of the excess amount of policy reserves based on Zillmer method 　 and subordinated debt that is not included in the margin (20,626) (16,433)　Deductible items (2,000) (3,000)(B) Total risk　　(R1 + R8)2 + (R2 + R3 + R7)2 + R4 80,904 84,411　Insurance risk R1 22,512 23,045　Third-sector insurance risk R8 8,368 8,422　Assumed interest rate risk R2 29,616 30,138　Minimum guarantee risk R7 12,896 14,373　Asset management risk R3 30,023 31,493　Business management risk R4 2,068 2,149Solvency margin ratio　[(A)/{(1/2) × (B)}] × 100 2,358.7% 2,555.0%

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 Japan and the Ministry of Finance Public Notice No. 50 of 1996.

2. Minimum guarantee risk is calculated based on the standardized approach.

<Reference> Real net assets(Billions of yen)

As of March 31, 2014 2015(1) Total amount to be recorded as assets (= + + + – ) ¥7,056.2 ¥8,159.8 Total assets on the balance sheet 6,624.9 7,301.3 Difference between fair value and balance sheet amount of securities 430.3 839.4 Unrealized gain or loss on tangible fixed assets 1.0 19.0 Unrealized gain or loss other than tangible fixed assets ̶ ̶ Deferred tax assets for available-for-sale securities ̶ ̶(2) An amount calculated based on total amount to be recorded as liabilities (= – – – – ) 5,709.8 6,276.8 Total liabilities on the balance sheet 6,255.6 6,868.8 Reserve for price fluctuations 41.5 42.8 Contingency reserve 63.6 68.7 Part of reserves for future insurance claim payment 400.2 429.6 Excess of amount equivalent to surrender values ( (a)) 400.0 429.3 Unallocated amount in reserve for policyholders’ dividends ( (b)) 0.1 0.2 Deferred tax liabilities for available-for-sale securities 40.3 50.8Real net assets (A) (1)–(2) (including unrealized gains and losses on held-to-maturity securities) 1,346.4 1,883.0(3) Unrealized gains and losses on held-to-maturity securities 430.3 839.4Real net assets (B) (1)–(2)–(3) (excluding unrealized gains and losses on held-to-maturity securities) 916.1 1,043.5

Note: According to the “Comprehensive Guideline for Insurance Companies” defined by the regulatory authority, when the amount (actual difference between assets and liabilities (B)) obtained by deducting unrealized gains and losses on held-to-maturity bonds and on policy reserve matching bonds which are not accounted for in the balance sheets as mark-to-market from the actual difference between assets and liabilities (A) is positive, and liquid assets are held, the regulatory authority will not, in principle, take early corrective actions even if the actual difference between assets and liabilities (A) becomes negative.



6 Balance of Separate Account Assets(Millions of yen)

As of March 31, 2014 2015

Individual variable life insurance and individual variable annuities ¥640,562 ¥793,344

Group annuities ̶ ̶

Total separate account ¥640,562 ¥793,344

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

7 Status of Individual Variable Life Insurance and Individual Variable Annuities

7- 01 Policy amount in forceIndividual variable life insurance

(Millions of yen)

2014 2015

As of March 31, Number Amount Number Amount

Variable life insurance (whole life type) 610,296 ¥7,302,062 685,767 ¥7,826,857

Variable life insurance (limited term type) 47,944 164,508 61,492 222,443

Variable life insurance (term type) 1,352 45,807 1,288 44,356

Total 659,592 ¥7,512,377 748,547 ¥8,093,657

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

Individual variable annuities(Millions of yen)

2014 2015

As of March 31, Number Amount Number Amount

Individual variable annuities 30,502 ¥161,758 46,508 ¥252,266Note: 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.

7- 02 Portfolio of separate account assets in individual variable life insurance and individual variable annuities


2014 2015

As of March 31, Amount % of total Amount % of total

Cash and deposits, call loans ¥ 17,838 2.8% ¥ 30,950 3.9%

Securities 620,666 96.9 760,411 95.8

　Japanese government and corporate bonds 168,661 26.3 165,980 20.9

　Japanese stocks 37,237 5.8 50,068 6.3

　Foreign securities 235,435 36.8 319,985 40.3

　　Bonds 51,863 8.1 59,918 7.6

　　Stocks, etc. 183,571 28.7 260,067 32.8

　Other securities 179,332 28.0 224,376 28.3

Loans ̶ ̶ ̶ ̶

Others 2,057 0.3 1,982 0.2

Reserve for possible loan losses ̶ ̶ ̶ ̶

Total ¥640,562 100.0% ¥793,344 100.0%




7- 03 Net investment gains (losses) of separate account assets in individual variable life insurance and individual variable annuities

(Millions of yen)


Interest income and dividends ¥ 11,773 ¥ 13,175Gains on sale of securities 16,052 17,275Gains on redemption of securities 74 16Valuation gains on securities 143,031 232,096Foreign exchange gains, net 5,036 8,458Gains on derivatives, net ̶ ̶Other investment income 0 ̶Losses on sale of securities 680 993Losses on redemption of securities 141 103Devaluation losses on securities 92,255 142,989Foreign exchange losses, net ̶ ̶Losses on derivatives, net ̶ ̶Other investment expenses 221 146Net investment gains (losses) ¥ 82,670 ¥126,789


7- 04 Fair values of securities relating to separate account assets in individual variable life insurance and individual variable annuities

Valuation gains (losses) on trading-purpose securities(Millions of yen)

2014 2015


amount

Net valuationgains (losses)

recordedin income

Balance sheetamount

Net valuationgains (losses)

recordedin income

Trading-purpose securities ¥620,666 ¥50,776 ¥760,411 ¥89,106Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.

Fair value information on monetary trustsNot applicable

Fair value information on derivative transactionsNot applicable

8 Number of Agencies

As of March 31, 2014 2015

Number of agencies 1,974 1,912

9 Number of Employees and Recruits

9- 01 Number of employees

As of March 31, 2014 2015

Office employees 1,816 1,924　[Male] [902] [925]　[Female] [914] [999]Sales employees 4,737 4,857*　[Male] [4,678] [4,782]　[Female] [59] [75]

* Number of Lifeplanner sales employees (including those rehired on a fixed-term contract basis after retirement and contracted Lifeplanner sales employees) is 4,329 as of March 31, 2015.



9- 02 Number of recruits


Office employees 245 254

　[Male] [48] [55]

　[Female] [197] [199]

Sales employees 444 419

　[Male] [422] [388]

　[Female] [22] [31]

9- 03 Average age and years of service

2014 2015

As of March 31, Average ageAverage years

of service Average ageAverage years

of service

Office employees 39.9 8.9 39.7 8.4

　[Male] [41.9] [11.4] [41.6] [11.2]

　[Female] [37.9] [6.4] [38.1] [5.9]

Sales employees 45.5 10.2 45.6 10.4

　[Male] [45.6] [10.3] [45.7] [10.5]

　[Female] [40.3] [2.4] [40.4] [2.2]

10 Average Salary

10- 01 Average salary (office employees)(Thousands of yen)


Office employees ¥399 ¥395Note: The average monthly salary is the tax-inclusive standard salary in March for each fiscal year, excluding bonuses and overtime pay.

10- 02 Average compensation (sales employees)(Thousands of yen)


Sales employees ¥594 ¥656Note: The average monthly compensation is the tax-inclusive compensation in March for each fiscal year, excluding bonuses and commuting allowances.


OrganizationAs of July 1, 2015


Board of Directors Audit & Supervisory Board

Audit & Supervisory Board Members’ Office

Chief ActuaryCompensation Advisory Committee

Executive Committee

Corporate Governance Advisory Committee

Corporate Organization & Human Resource Advisory Committee

Lifeplanner Sales Group

Independent Agency Sales Group

IT Strategy Group

Total Administration Control Group

Disciplinary CommitteePersonnel Development CommitteeCompliance CommitteeClaims & Benefits Assessment CommitteeRisk Management CommitteeEnvironment CommitteeProtection of Personal Information Promotion CommitteeVoice of Customer (VOC) CommitteeMarket Conduct Compliance (MCC) CommitteeInvestment CommitteeProduct Development CommitteeInformation System Committee

Agency OfficesAgency Office Sales Planning DivisionAgency Office Planning & Promotion DivisionLifeplanner Promotion DivisionAgency Office Sales Education & Training DivisionAgency Office Recruitment & Promotion DivisionAgency Office Product Promotion DivisionCareer Promotion & Development DivisionMarketing Division

Regional Sales DivisionEastern Japan Sales DivisionWestern Japan Sales DivisionIndependent Agency Planning DivisionIndependent Agency Sales Promotion DivisionIndependent Agency Sales Support Division


Product Development Division

Business Administration Control DivisionCompliance DivisionLegal Division

Investment Division

Information System Planning & Management DivisionInformation System Service Promotion DivisionInformation System Development Division 1Information System Development Division 2

Information System Quality Assurance Office

Operations Administration Division

Solution Development Division

Office Administration Division

Underwriting & Medical Division

Policyholders’ Service Division

Claims & Benefits Division

Real Estate & Alternative Investments Division

Chief Medical Officer

Corporate Communications Division

New Business Development Division

Actuarial Division

ALM Division

Corporate Planning Division

Co-Creation Planning Division

Business Planning Division

Sales Planning Division

Corporate Sales Strategy Division

Accounting Division

Investment Administration Division

Investment Planning Division

Sapporo Service Center

Customer Center

Voice of Customer Division

Operations Planning Division


Human Resources Division

General Affairs Division


Corporate History

1979 June Preliminary authorization obtained from the Ministry of Finance Aug Sony Prudential Life Insurance Co., Ltd., established with capital

of ¥400 million as a joint venture between Sony Corporation and Prudential Insurance Company of America

Sept Headquarters established at 1-1, Minami Aoyama 1-chome, Minato-ku, Tokyo

Dec Capital increased to ¥1.2 billion1980 Sept Capital increased to ¥3.0 billion1981 Feb Business license obtained from the Ministry of Finance1982 Feb Capital increased to ¥4.5 billion1986 Sept Capital increased to ¥5.5 billion Oct Variable life insurance launched1987 July Agreement reached with Prudential to terminate joint venture

contract Sept Corporate name changed to Sony Pruco Life Insurance Co., Ltd. Equity interest: Sony Corporation 50%; Pruco Inc. 30%; Career

Development International Co., Ltd. 10%; Mitsui Bank, Ltd. 5%; The Mitsui Trust & Banking Co., Ltd. 5%

1988 Oct Capital increased to ¥11.0 billion1989 Apr Cancer insurance launched June Individual life insurance in force exceeded ¥1 trillion Aug Tenth anniversary of founding Oct Independent agency system introduced1990 Dec Capital increased to ¥18.0 billion1991 Apr Corporate name changed to Sony Life Insurance Co., Ltd. June Individual life insurance in force exceeded ¥2 trillion July Began handling group annuity insurance Nov Capital increased to ¥22.0 billion1992 Apr Comprehensive medical insurance launched1993 Feb Individual life insurance in force exceeded ¥3 trillion Sept Equity interest: Sony Corporation 50%; Sony Corporation of

America 30%; Career Development International Co., Ltd. 10%; The Sakura Bank, Ltd. 5%; The Mitsui Trust & Banking Co., Ltd. 5%

1994 Sept Equity interest: Sony Corporation 60%; Sony Corporation of America 30%; Career Development International Co., Ltd. 10%

Dec Individual life insurance in force exceeded ¥5 trillion1995 Dec All sales employees provided with personal computers1996 Mar Individual life insurance in force exceeded ¥8 trillion Equity interest: Sony Corporation 100% Dec Individual life insurance in force exceeded ¥10 trillion1997 Feb Total assets exceeded ¥500.0 billion July Capital increased to ¥50.0 billion1998 Jan Individual life insurance in force exceeded ¥13 trillion Aug Sony Life Insurance (Philippines) Corporation established Nov Total assets exceeded ¥800 billion1999 Mar Individual life insurance in force exceeded ¥16 trillion Apr Mutual fund launched Aug Twentieth anniversary of founding Sept Cumulative deficit cleared Capital decreased to ¥40.0 billion Nov Variable annuity insurance launched Non-smoker preferred risk insurance launched Dec Total assets exceeded ¥1 trillion2000 Jan Individual life insurance in force exceeded ¥18 trillion Feb Sales of Global Wrap mutual fund launched through Lifeplanner

marketing channel Sept Whole-Life Insurance launched Cancer rider launched Oct Individual life insurance in force exceeded ¥20 trillion2001 Mar Standard policy reserves achieved by increasing capital by

¥50.0 billion Capital increased to ¥65.0 billion ISO 14001 certification acquired Apr Long-term comprehensive medical insurance launched May Sales of Sony Assurance’s products started through Lifeplanner

sales employees June Sales structure for mutual funds expanded through Lifeplanner July Individual life insurance in force exceeded ¥22 trillion Sept Comprehensive long-term medical insurance coverage launched,

including features for hospitalization and surgical procedures 2002 Mar Commenced group credit life insurance service for mortgage

loan borrowers from Sony Bank Inc. Apr Nursing needs rider launched May Registration of legal entity for management of defined

contribution plans completed July Variable life term insurance product launched Separate accounts associated with variable life insurance

product, proliferated with Japan Equity Growth Fund and World Core Equity Fund

Sept Individual life insurance in force exceeded ¥24 trillion Oct Began selling insurance products through bank channels2003 Jan Increasing term life insurance product Excellent Value Plan

launched May Sony Life Academy for executive training opened Total assets exceeded ¥2 trillion The Book 1 completed

June ISMS certification obtained July Rider to cover initial period of hospitalization launched Individual life insurance in force exceeded ¥25 trillion Nov The Book 2 completed2004 Mar Individual life insurance in force exceeded ¥26 trillion Apr Sony Corporation established Sony Financial Holdings Inc. Sony Life became 100% subsidiary of Sony Financial

Holdings Inc. May Insurance with special exemption from payment of premiums

launched June Sony Bank began selling Sony Life’s individual annuities Dec Individual life insurance in force exceeded ¥27 trillion Commenced introduction of Sony Bank mortgage loans through

Lifeplanner sales channel 2005 June Individual life insurance in force exceeded ¥28 trillion July “LIFEPLANNER VALUE” registered as a trademark Nov Commenced sales of Long-Term, Level Term Life Insurance

(Disability Compensation, Non-Profit) 2006 Jan Total assets exceeded ¥3 trillion Feb Commenced sales of Increasing Term Life Insurance

(Low Surrender Payments, Non-Profit) Aug Introduction of cashless system for first policy premium

installment Sept Opened Life Planning SQUARE Commenced tie-up with Watami Co., Ltd., in nursing care

business Oct Completed construction on Sony City, Sony Corporation’s

headquarters building Nov Began selling semi-participating whole life nursing-care insurance Commenced sales of semi-participating lump-sum nursing care

policy rider Began selling income protection insurance to cover three major

diseases 2007 Mar Individual life insurance in force exceeded ¥30 trillion Apr Insurance rates revised Aug AEGON Sony Life Planning Co., Ltd., established as 50–50 joint

venture with the AEGON Group of the Netherlands Dec Received permission to conduct banking agency business on

behalf of Sony Bank2008 Apr Whole-life cancer insurance (08) offered May Capital increased to ¥70.0 billion Oct Sales of level premium term life insurance plan and rider with no

surrender value Opened Beijing representative office2009 April Sales of cancer hospitalization insurance Sales of advanced medical treatment rider Sales of hospitalization surgical benefits rider Added benefits for bone marrow donors July Opened Taipei representative office Tie-up with Specified Nonprofit Organization Yuigon Sozoku

Legal Network Aug 30th anniversary of establishment AEGON Sony Life Insurance Co., Ltd., received permission from

Financial Services Agency to conduct life insurance business Sept Total assets exceeded ¥4 trillion Oct Established variable life reinsurance company,

SA Reinsurance Ltd. Nov Commenced sales of discount rider for nonsmokers and others

in excellent health Dec AEGON Sony Life Insurance began sales2010 Feb Established LIPLA Co., Ltd., as wholly owned subsidiary Apr Opened Sony Life Sapporo Service Center Nov Sales of whole life nursing-care insurance (reduced surrender

value) and lump-sum payment nursing-care rider Began offering discount rider for nonsmokers and others in

excellent health for decreasing term life insurance2011 May Sales of income protection insurance to cover three major

diseases (Type II) Abolished system using registered seals July Established VOC (Voice Of Customer) Committee Nov Commenced sales of cancer drug therapy rider Dec Total assets exceeded ¥5 trillion2012 Dec Business transfer of Sony Life Insurance (Philippines) Corporation

to Paramount Life & General Insurance Corporation2013 May Began sales of U.S. dollar denominated insurance LIPLA Co., Ltd., transferred its life insurance business to Tokyu

Insurance Consulting Co., Ltd.2014 Jan Commenced sales of educational endowment insurance

(non-participating) Feb Dissolved tie-up with Watami Co., Ltd. May Launched sales of specialty endowment insurance July Closed Beijing representative office Sept Acquired Sony City land Oct Launched living benefit whole life insurance (living standard type)

and living standard special provision 142015 May Launched lump-sum payment whole life insurance

(no-notification type)


Directors and Statutory AuditorsAs of July 1, 2015

Directors and Statutory Auditors

Title Name Other Concurrent Responsibilities within the Sony Financial Group*1

Chairman, Director Katsumi Ihara President and Representative Director of Sony Financial Holdings Inc.

Director of Sony Assurance Inc.

Director of Sony Bank Inc.

Director of AEGON Sony Life Insurance Co., Ltd.

President, Representative Director Tomoo Hagimoto*2 Director of Sony Financial Holdings Inc.

Representative Director Masamitsu Shimaoka*2

Director Yuichiro Sumimoto*2 Director of AEGON Sony Life Insurance Co., Ltd.

Director Shigeru Ishii Executive Vice President, Representative Director

of Sony Financial Holdings Inc.



Director Hiroaki Kiyomiya Managing Director of Sony Financial Holdings Inc.



Director of AEGON Sony Life Insurance Co., Ltd.

Director of Sony Lifecare Inc.

Standing Statutory Auditor Mitsuhiro Koizumi Statutory Auditor of Sony Financial Holdings Inc.

Statutory Auditor of AEGON Sony Life Insurance Co., Ltd.

Statutory Auditor Yasuyuki Hayase Standing Statutory Auditor of Sony Financial Holdings Inc.

Statutory Auditor of Sony Assurance Inc.

Statutory Auditor of Sony Bank Inc.

Statutory Auditor Masayoshi Fukuya Standing Statutory Auditor of Sony Assurance Inc.

*1 The Sony Financial Group indicated here refers to Sony Financial Holdings Inc., Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Lifecare Inc.

*2 Concurrently, Executive Officer

Tomoo Hagimoto

President

Masamitsu Shimaoka

Executive Deputy President

Yuichiro Sumimoto

Senior Executive Vice President

Tohru Hanatsuya

Executive Vice President

Taketoshi Nonaka


Yoshihiko Kaiya


Kiyoshi Watanabe


Jun Shirai


Tomohito Tsuchiya


Katsuhiko Oka

Senior Vice President

So Sato


Nobuhiro Sakurai


Tatsuo Hasegawa


Kazuhiro Yamada


Noboru Mitsui


Masaaki Kamata


Teiji Tanabe


Yuji Oosato


Officers


Corporate DataAs of March 31, 2015

Global Network

Sony Life Insurance Co., Ltd.

Headquarters

1-1-1, Minami Aoyama, Minato-ku, Tokyo 107-8585, Japan

Established: August 1979

Common Stock: ¥70,000 million

Employees: 6,781 (including 4,329 Lifeplanner sales employees)

Total Assets: ¥7,301,350 million

Fiscal Year: April 1 to March 31

Taipei Representative Office

28F, No.66, Sec. 1, Zhongxiao W. Rd. Zhongzheng District, Taipei, 10018, Taiwan

Tel: +886-02-7720-0606

Documents

Annual Report - Sony · PDF fileSony Life Insurance Co., Ltd. Annual Report ... expressed his vision for Sony Life as a “life insurance company ... Accompanying Customers through