Annual Report - Sony · PDF fileSony Life Insurance Co., Ltd. Annual Report 2014 The concept...

Annual Report

Mission

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

LIFEPLANNER VALUE: Four Commitments

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.

Planning

Co-Creation

Professionalism

Society

We are committed to providing customers with continuous lifelong support, so that they can live positively every day with peace of mind. We will help customers to plan their lives as they seek to realize their dreams.

We value the process of “co-creation,” which is achieved in the course of meeting with customers and steadily earning their trust, as we work closely with each customer to help realize his or her dreams.

We are committed to delivering high-quality services with an emphasis on professionalism by constantly enhancing the skills and knowledge of each employee, and bringing together our collective strengths.

By fulfilling our commitments, we will help to create a society in which everyone can live with peace of mind in pursuit of their dreams.

“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

FY2013 Operating Performance 009

Asset Management 011

Income 013

Assets, Liabilities and Net Assets 015

Financial Soundness 016

Market Consistent Embedded Value (MCEV) and

Risk Amount Based on Economic Value 019

Protecting Every Dream throughout Each Individual’s Life.

That’s 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 Input 038

Risk Management System 040

Personal Information Protection and Information Security 043

Compliance 046

Environmental Preservation Initiatives 050

Participation in Social Contribution Activities 052

Financial Data 059

Organization 106

Corporate History 107

Directors and Statutory Auditors 108

Corporate Data 109

Global Network 109

CONTENTS

Message from the President

President, Representative Director

Katsumi Ihara

002

Sony Life Insurance Co., Ltd. Annual Report 2014

First, I wish to express my heartfelt gratitude for your continued

interest in and support for Sony Life.

In FY2013, the Japanese economy saw the Bank of Japan

implement an aggressive monetary easing policy under the

Japanese government’s so-called “Abenomics” economic

policies, following a change of ruling party in December 2012.

This led to the yen’s ongoing depreciation, and a fi rm rally in

the Nikkei Stock Average. Combined with signs of improving

corporate earnings, FY2013 was a year in which the Japanese

economy took its fi rst steps toward recovery. Additionally,

Tokyo was selected as the host of the 2020 Summer Olympic

Games. All of Japan was fi lled with an upbeat atmosphere not

seen in recent times. This renewed optimism is expected to

add momentum to the economic recovery going forward.

Under these economic conditions, the Japanese govern-

ment increased the consumption tax rate in April 2014 in order

to secure the revenue needed to fund social programs and

services such as pensions, nursing care and medical care, as

well as policy measures to counter the country’s low birthrate.

Japan is rapidly becoming an aged society with a low birthrate.

Self-reliant efforts will now be needed to prepare for a better

quality of life in retirement, along with a social services system

supported by society as a whole. That is why life insurers

will be expected to play an even more crucial role in society

going forward.

In this business environment, Sony Life has been taking

steps to fulfi ll its obligations as a life insurance company. These

efforts include working to achieve steady business growth while

maintaining strong fi nancial soundness, as well as reinforcing

our internal control systems. Guided by our fundamental mis-

sion of “working for customers’ fi nancial security and stability

by offering optimal life insurance products and high-quality ser-

vices,” Sony Life will continue to provide services that exceed

customer expectations as we continue to drive higher growth.

FY2013 Business ResultsIn FY2013, new policy amount*1 decreased 12.7% year on

year to ¥3,889.3 billion due mainly to the impact of the revision

of insurance premium rates. Furthermore, policy amount in

force*1 was ¥39,095.0 billion as of March 31, 2014, an increase

of 3.5% from the previous fi scal year-end. Policy amount in

force has grown continuously since Sony Life commenced

operations in 1981.

Sony Life has maintained a high solvency margin ratio*2 of

2,358.7%. The solvency margin ratio is a major indicator of the

fi nancial soundness of an insurance company. We are deeply

grateful for the support of everyone concerned as these results

would not have been possible without your support.

New Initiatives in FY2013Consistently Serving Diversifying Customer Needs

Sony Life seeks to stand closer than ever to customers and to

be a partner that helps customers to achieve their life plans.

Sony Life has taken a range of initiatives to be the most highly

trusted life insurance company in the eyes of customers.

In May 2013, Sony Life launched U.S. dollar-denominated

whole life, endowment and specialty endowment insurance.

These products offer a stronger savings component through

U.S. dollar-denominated investments, helping to ensure a

better balance of insurance protection and asset formation

for customers. In October 2013, Sony Life began conduct-

ing customer satisfaction surveys. In these surveys, Sony Life

calls customers and asks them directly about the Lifeplanner

sales employee assigned to them. Questions include how

often an assigned Lifeplanner visits the customer, whether the

Lifeplanner provides information about new products, services

and so on, and how promptly the customer is supported.

Through these surveys, we clarify what customers expect of

*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 one measure used by regulatory authorities to

determine whether an insurer has the ability to pay in response to the risk of

unpredictable events such as major earthquakes.

each Lifeplanner in terms of service and value, and improve

operations to refl ect the personal perspectives of customers.

In January 2014, Sony Life commenced sales of an edu-

cational endowment insurance (non-participating) product

with emphasis on the savings component. This product aims

to serve the needs of customers seeking the lowest pos-

sible premiums, rather than the potential for future dividends.

Separately, eyeing the arrival of Japan’s super-aging society

in the near future, Sony Financial Holdings Inc., the parent

company of Sony Life, entered the nursing care business in

February 2014 to ensure that customers can lead fulfi lling life-

styles with lifelong peace of mind. To this end, Sony Financial

Holdings established Sony Lifecare Inc. in April 2014. By hav-

ing the entire Sony Financial Group address the fi nancial risks

and issues faced by seniors in their daily lives, we aim to bring

about a society in which people can truly feel that “longevity is

a source of happiness.”

“LIFEPLANNER VALUE”For Our Customers, With Our Customers

Staying True to Our Founding Principles

Since its founding in 1979, Sony Life has transformed

conventional notions of life insurance by introducing a new

consulting-based sales approach through its Lifeplanner sales

employees. In the process, Sony Life has provided every cus-

tomer with optimal life insurance products. In our archives,

we have a handwritten corporate document prepared before

Sony Life’s founding, which is considered to be our founding

prospectus. It states that “the original purpose of life insurance

is to ensure fi nancial security for individuals” and “we aim to

serve the true needs of individual consumers by designing cus-

tomized insurance products by fl exibly combining an extensive

range of products.” These statements indeed express Sony

Life’s fundamental mission today, and embody the unchanging

principles we have embraced since the time of our founding.

Furthermore, we will build trust with our customers as their life-

long partner by offering high-quality “Follow-up Consultations”

and support throughout their lives, thereby turning their dreams

into reality. This is the essence of Sony Life’s “LIFEPLANNER

VALUE” proposition.

Founded in 1979, Sony Life marked its 35th anniversary in

August 2014. I am truly grateful to the large numbers of cus-

tomers, who have supported Sony Life over the years, as this

anniversary would not have been possible without their trust.

To ensure that we provide lifelong insurance protection to

each and every customer through our “LIFEPLANNER VALUE”

proposition, Sony Life will reaffi rm its principles of foundation

and continue working to deliver even more peace of mind to

customers.

We kindly ask for your continued support and encouragement

as we endeavor to reach our goals.

Katsumi Ihara

President, Representative Director

Sony Life Insurance Co., Ltd.

003


Photo of Akio Morita by Kazumi Kurigami/Igfy Corporation

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’ fi nancial 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, Sony Life’s

total assets surpassed ¥6 trillion in FY2012, and in FY2014 the Company celebrated its 35th

anniversary of establishment. We look forward to passing forward the passion of our founder

in the years to come.

004


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 cus-

tomers’ trust, Sony Life’s Lifeplanner sales employees undergo a variety of training pro-

grams to accumulate the necessary expertise and skills, turning them into professionals in

the areas of life insurance and fi nance.

“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 specifi c 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 insurance 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 custom-

ers. 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 ¥39,095.0 billionAs of March 31, 2014

* 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)

We aim to satisfy our customers and ensure their peace of mind. To augment their

expertise and hone their skills, Sony Life’s Lifeplanner sales employees have embraced a

culture of mutual assistance. To this end, they hold independent training forums around the

nation. Evincing the success of this system, Sony Life represents one of the largest groups

forming the Japan chapter of the Million Dollar Round Table (MDRT), with 716 people*.

Furthermore, MDRT Sony meets several times each year to conduct training.

The rallying cry of Sony Life’s employees is “One Love, One Trust,” raised as they take

the initiative in social contribution activities.

All for CustomersReciprocal Training and Contribution to Society

* As of June 1, 2014

005

The Sony Financial Group

Aiming to Become One of Japan’s Most Trusted and Attractive Financial Services Groups

The Sony Financial Group is an integrated fi nancial 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 fi rst fi nancial 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 combines a host of fi nan-

cial functions to provide high-value-added products and quality services that meet individual custom-

ers’ economic needs in its aim to become the fi nancial services group that is most highly trusted by

its customers.

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 fi elds, to provide high-value-added products and fi nancial services.

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

through cross-selling between Group companies. In FY2013, Lifeplanner sales employees wrote

approximately 5% of all new Sony Assurance automobile insurance policies and some 17% of Sony

Bank mortgage loans.

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

and reinforcing synergies.

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

50% owned50% owned

100% owned 100% owned

100% owned

57% owned 100% owned

100% owned

AEGON Sony Life Insurance

(As of October 1, 2014)

006


In December 2009, Sony Life and the AEGON Group of the Netherlands set up this company as a 50–50 joint venture

life insurance company specializing in the individual annuity business. The company was established in response to the

demand engendered by Japan’s falling birthrate and aging population. Sony Life took the establishment of AEGON Sony

Life Insurance as an opportunity for mounting a full-fl edged effort targeting over-the-counter bank sales. The company

currently has tie-ups in place with 20 fi nancial institutions, including Sony Life.

• Sales of AEGON Sony Life Insurance’s Products by Lifeplanner Sales Employees

Sony 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 January 2010, 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 rational, 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.

Tie-Ups with Sony BankEstablished in April 2001, Sony Bank is an Internet bank that provides fi nancial 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 Accounts

In 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 specifi c 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.

Note: Sony Life also handles Sony Bank’s mortgage loans and sets up its accounts at Life Planning SQUARE. (See place 33.)

• Underwriting Group Credit Life Insurance for Sony Bank’s Mortgage Loans

In 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.

Establishment of 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 offi ce in Taipei. This offi ce gathers information and conducts surveys on the

fi nancial and insurance markets in Taiwan and other parts of Greater China.

AEGON Sony Life Insurance

007


Financial Highlights

(Millions of yen)

For the years ended March 31 2010 2011 2012 2013 2014

Policy amount in force 34,598,244 35,947,326 37,345,780 39,124,675 40,500,241 Individual life insurance 33,164,100 34,421,831 35,707,301 37,366,333 38,628,089Individual annuities 306,661 326,699 369,759 412,709 466,915Group life insurance 1,127,481 1,198,794 1,268,718 1,345,632 1,405,237

Policy amount in force for group annuities 72,348 58,937 57,811 56,503 55,196Annualized premiums from insurance in force 573,331 604,793 635,401 669,937 696,986

Medical protection, living benefi t protection

and other products 133,023 140,776 148,954 158,686 167,075New policy amount 4,056,495 4,213,996 4,207,045 4,460,210 3,894,484

Individual life insurance 4,017,527 4,166,278 4,145,663 4,396,676 3,814,291Individual annuities 31,709 32,746 57,664 57,931 75,088Group life insurance 7,258 14,971 3,717 5,602 5,104

Annualized premiums from new policies 68,780 71,230 70,854 73,263 63,992Medical protection, living benefi t protection

and other products 16,264 16,679 17,101 18,397 13,486

Ordinary revenues 881,798 900,091 967,400 1,142,274 1,197,109Income from insurance premiums 700,101 770,330 816,106 925,874 960,986Investment income 175,397 119,500 133,945 199,833 212,323

Ordinary expenses 801,698 826,914 897,964 1,067,614 1,127,904Insurance claims and other payments 274,278 297,966 287,431 293,929 327,257Investment expenses 20,584 19,303 14,370 11,686 8,506Operating expenses 96,860 99,374 105,492 109,060 113,868

Ordinary profi t 80,099 73,176 69,436 74,659 69,205Net income 46,138 40,220 31,426 42,444 37,063Core profi t 64,517 56,295 71,685 80,045 72,365

Common stock 70,000 70,000 70,000 70,000 70,000Number of shares issued and outstanding

(Thousands of shares) 70,000 70,000 70,000 70,000 70,000Total assets 4,286,540 4,723,332 5,222,846 5,952,750 6,624,903

Separate account assets 373,604 398,124 444,289 550,624 640,562Policy reserves 3,985,610 4,371,484 4,843,020 5,472,930 6,123,633Loans 127,599 134,419 138,909 145,104 154,219Securities 3,539,114 4,017,583 4,545,019 5,211,535 5,954,716Solvency margin ratio 2,637.3% 2,900.1% 1,980.4% 2,281.8% 2,358.7% [1,720.0%]

Number of employees 5,835 5,921 6,060 6,323 6,553

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 coeffi cient corresponding to the premium payment method. (For lump-sum payment policies, premiums are divided by the number of coverage years.)

5. “Medical protection, living benefi t protection and other products” is the portion of the annualized premium for medical protection benefi ts (hospitalization benefi ts,

surgical benefi ts, etc.) and living benefi t protection (benefi ts for specifi c diseases, nursing care benefi ts, etc.).

6. Cabinet Offi ce 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 fi gures for

the years ended March 31, 2010 and 2011 and the fi gures for the years ended March 31, 2012 to 2014 are calculated based on different methods. The above-

stated fi gure 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 fi gure is also

included in disclosures for the fi scal year ended March 31, 2011.

008


FY2013 Operating Performance

Policy Amount in Force

New Policy Amount

¥39,095.0 billion

¥3,889.3 billion

At the end of FY2013, total policy amount in force was

¥39,095.0 billion, up 3.5% 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 and a lower lapse and surrender rate. We believe

that these fi gures refl ect 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 ¥1,405.2 billion, up

4.4%. Consequently, the total of individual life insurance,

individual annuities and group life insurance in force was

¥40,500.2 billion, up 3.5% from the previous fi scal

year-end.

The number of policies in force (the total for individual

life insurance and individual annuities) came to 6,330,413,

up 4.8%.

In FY2013, our new policy amount was down 12.7%

compared with the preceding fi scal year, to ¥3,889.3 billion,

owing mainly to the revision in insurance premium rates.

Group life insurance fell 8.9%, to ¥5.1 billion. The total new

policy amount of individual life insurance, individual annui-

ties and group life insurance was down 12.7%, to ¥3,894.4

billion. The number of new individual life insurance policies

and individual annuities during the year was 533,665,

down 14.0%.

Policy Amount in Force

(Individual life insurance + Individual annuities)

New Policy Amount

(Individual life insurance + Individual annuities)

20142013201220112010

(Billions of yen)

(As of March 31)

Individual life insuranceIndividual annuities

40,000

32,000

24,000

16,000

8,000

0

33,164.1 34,421.8 35,707.3 37,366.3 38,628.0

306.6 326.6 369.7412.7 466.9

¥39,095.0 billion

20142013201220112010

(Billions of yen)

(Years ended March 31)

Individual life insuranceIndividual annuities

5,000

4,000

3,000

2,000

1,000

0

¥3,889.3 billion

4,017.5 4,166.2 4,145.6 4,396.6 3,814.2

31.7 32.7 57.657.9

75.0

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 ¥3,889.3 billion.

009


Product Mix

Ratio of Operating Expenses to Income from Insurance Premiums

Sales centered on death-protection products.

We continue working to raise management effi ciency.

Sales centered on death-protection products*, which

accounted for approximately 90% of our new policy

amount in FY2013, on a policy amount basis.

In FY2013, our ratio of operating expenses to income from

insurance premiums was 11.9%. We will continue striving

to raise management effi ciency.

New Policy Amount by Type of Products

(Individual life insurance and individual annuities

on a policy amount basis, FY2013)

Whole life16.4%

Endowment/Educational endowment, Individual annuities11.4%

Variable life6.1%

Medical insurance, Other1.9%

Term life64.2%

Ratio of Operating Expenses to Income

from Insurance Premiums

20142013201220112010

(%)25

20

15

10

5

0

11.9%

11.812.9

13.912.9


Lapse and Surrender Rate

The lapse and surrender rate fell.

4.61%

11.9%

In FY2013, our lapse and surrender rate for individual life

insurance and individual annuities on a policy amount basis

was down 0.70 percentage point, to 4.61%, centered on a

decrease in term life insurance.

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)

20142013201220112010

(%)


10

8

6

4

2

0

4.61%

5.315.93

6.41

7.21

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 fi scal 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 fi gure 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.

010


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

In FY2013, the Japanese economy continued to grow.

During the fi rst half, government measures to stimulate

the economy and ongoing yen depreciation led to major

increases in public-sector investments and exports.

Personal consumption remained robust, as consumer

confi dence improved, refl ecting higher share prices. The

second half saw a surge in demand ahead of the April

2014 consumption tax hike, prompting sharply higher

durable goods sales and private housing investment.

Meanwhile, the rate of expansion waned in public-sector

investment and exports, which had driven growth up to

that point. Real GDP growth temporarily slowed as a result,

although remaining generally robust for the fi scal year as

a whole.

Year on year, real GDP growth in the April–June quarter

was 2.9%, 1.3% in the July–September quarter and 0.3%

in the October–December quarter. The fi gure was a positive

6.7% during the January–March quarter.

The bond markets were affected to a large extent by the

Bank of Japan’s (BOJ’s) quantitative and qualitative mone-

tary easing policy, introduced in April 2013. Specifi cally,

the BOJ announced intentions to double its monetary

base and holdings of long-term bonds/exchange-traded

funds over the next two years, as well as to more than

double its holding period for purchases of long-term

Japanese government bonds (JGBs). Shortly after these

measures were introduced, interest rates fl uctuated wildly

on concerns of reduced market liquidity. However, once

the bank announced its intentions to maintain quantitative

and qualitative monetary easing policy as necessary to

achieve a stable 2% increase in commodity prices, the

increase in yields on short- and medium-term bonds

grew more limited over the time axis. This effect rippled

outward into long-term bonds, as well, gradually reducing

bond market volatility. Toward the end of the fi scal year,

interest rates gradually decreased, refl ecting the return to

market stability. The yield on 10-year JGBs, a benchmark

for long-term interest rates, fell to 0.325% at one point in

April 2013, rising to 0.996% at one stage in May. As of

March 31, 2014, the yield on 10-year JGBs was 0.642%,

up 0.082 percentage point from one year earlier.

The stock markets expanded signifi cantly. In anticipation

of the BOJ’s April 2013 introduction of quantitative and

qualitative monetary easing, coupled with the central

government’s growth strategies, the Nikkei average jumped

from ¥12,397.91 on March 31, 2013, to ¥15,942.60 at one

point in mid-May. Thereafter, concerns about the scaling

back of quantitative easing in the United States and fears

of slowing economic growth in emerging markets caused

the Nikkei to drop back below ¥13,000 at one point as

stock prices entered an adjustment phase. Thereafter,

robust corporate performance prompted a gradual upturn

in share prices. As of March 31, 2014, the Nikkei average

was ¥14,827.83, up ¥2,429.92 from one year earlier.

In foreign exchange markets, the yen continued to

depreciate. The dollar/yen market reacted favorably to

the BOJ’s April 2013 introduction of quantitative and

qualitative monetary easing. Starting at ¥94.22 to the U.S.

dollar as of March 31, 2013, the yen depreciated against

the dollar to ¥103.74 at one point in May. After that point,

the market reacted to the scaling back of U.S. monetary

easing and an increasingly tense international situation by

buying back yen in an effort to offset risk. As a result, the

yen again rose into the neighborhood of ¥94 against the

dollar. Moving toward the second half of the fi scal year, a

recovering U.S. economy and an agreement between the

Liberal Democratic Party (LDP) and the opposition parties

on a debt ceiling prompted the buying back of dollars. The

yen consequently depreciated to above ¥100 against the

U.S. dollar. As of March 31, 2014, the yen was trading at

¥103.23 against the U.S. dollar, amounting to defl ation of

¥8.97/dollar compared with a year earlier.

Investment Yield (%)

FY2012 FY2013

Investment yield for core profi t 2.31 2.35

Investment yield (general account) 2.12 2.20

Asset Management

Investment Environment

Investment Performance

As of March 31, 2014, general account assets totaled

¥5,984.3 billion, up 10.8%, or ¥582.2 billion, from one year

earlier. Within the general account, positions of Japanese

government and corporate bond investments came to

¥5,190.0 billion (accounting for 86.7% of general account

assets); foreign bonds, ¥79.8 (1.3%); Japanese stocks,

¥33.2 billion (0.6%); monetary trusts, ¥305.3 billion (5.1%);

policy loans, ¥154.1 billion (2.6%); real estate ¥66.5 billion

(1.1%); and cash and deposits, call loans ¥32.6 billion

(0.5%).

General Account Assets

(As of March 31, 2014)

Foreign bonds 1.3%

Other securities 0.1%Real estate 1.1%Other assets 1.5%

Cash and deposits, call loans 0.5%

Japanese stocks 0.6%

Japanese government bonds and others86.7%

Monetary trusts 5.1%Policy loans 2.6%

Foreign stocks and others 0.4%

011


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 benefi ts 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 benefi ts.

Characteristically, insurance liabilities are highly susceptible

to interest rate fl uctuations. 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 fl uctuate broadly as interest

rates change, which means that insurance liabilities are also

highly variable. These fl uctuations 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

fi xed-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.

Specifi cally, 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 to 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

012


Income

Income from Insurance Premiums and Insurance Claims and Other Payments

Ordinary Profi t and Net Income

¥960.9 billion/¥327.2 billion


In FY2013, such factors as steady increases in the policy

amount in force caused income from insurance premiums

to rise to ¥960.9 billion, compared with ¥925.8 billion in the

preceding fi scal year. Meanwhile, insurance claims and

In FY2013, ordinary profi t decreased 7.3%, to ¥69.2 billion.

Although the positive spread increased, ordinary profi t fell

as a result of a revision in the standard prospective yield,

which prompted an increase in the provision for policy

Income from Insurance Premiums and Others

20142013201220112010

1,000

800

600

400

200

0

¥960.9 billion

700.1770.3

816.1

925.8

(Billions of yen)


Insurance Claims and Other Payments

20142013201220112010

150

120

90

60

30

0

¥143.6 billion

9.5

46.8

71.0

10.7

55.5

77.4

8.2

38.3

76.5

7.7

34.6

64.8

8.5

42.2

68.9

ClaimsBenefitsAnnuities

(Billions of yen)


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,

benefi ts, annuities, surrender cash that insurance companies make to customers

under their insurance policies.

Ordinary profi t—the difference between ordinary revenues and ordinary expenses—

represents income derived from operating activities during the fi scal 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 benefi ts,

annuity payments, provision for policy reserves and others, investment expenses and

operating expenses.

Net income is calculated by adding extraordinary gains to ordinary profi t, then subtracting

provision for reserve for price fl uctuations and other extraordinary losses, as well as

provision and reversal for reserve for policyholders’ dividends and income taxes.

other payments in FY2013 amounted to ¥327.2 billion

(compared with ¥293.9 billion in FY2012). Insurance

claims, benefi ts and annuities amounted to ¥143.6 billion

(compared with ¥127.4 billion in FY2012).

Investment Income and Investment Expenses


In FY2013, investment income amounted to ¥212.3 billion,

compared with ¥199.8 billion in the preceding year. This

increase was attributable mainly to higher interest income

and dividends.

Investment income, or the income received through the investment in assets, includes

interest and dividend income, as well as gains on sale of securities. Investment expenses,

or the expenses incurred in order to generate investment income, include such items as

losses on sale of securities, devaluation losses on securities and provision for reserve for

possible loan losses.

Investment expenses came to ¥8.5 billion, down

from ¥11.6 billion in the preceding year, refl ecting an

improvement in foreign exchange gains and losses.

reserves, and a provision for policy reserves related to the

minimum guarantee for variable life insurance. Net income

fell 12.7%, to ¥37.0 billion.

Ordinary profi t, which indicates the difference between ordinary revenues and ordinary expenses, was ¥69.2 billion, and net income came to ¥37.0 billion.

Investment income, which expresses income from the investment in assets, came to ¥212.3 billion. Investment expenses, which indicates the cost of generating that income, was ¥8.5 billion.

Up due to such factors as growth in the policy amount in force

013


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.

In FY2013, the positive spread rose ¥6.3 billion year on

year, to ¥8.4 billion, due to a decline in the average

assumed interest rate and an increase in the investment

yield for core profi t.

Positive Spread

Core Profi t

¥72.3 billion

In FY2013, core profi t declined 9.6% year on year, to

¥72.3 billion. Although the positive spread increased, the

lower fi gure was the result of a revision in the standard

prospective yield, which prompted an increase in the provi-

sion for policy reserves, as well as the provision for policy

reserves related to the minimum guarantee for variable life

insurance.

Core profi t is an indicator of the profi t-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, benefi ts and annuities 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 profi t

produces ordinary profi t, which appears on the statements of income.

Positive spread has continued since FY2012.

Core profi t, an indicator of profi t in the mainstay insurance business, amounted to ¥72.3 billion.

Core profit of ¥72.3 billion

Net capital gains (losses) of ¥1.1 billion

Net other one-time gains (losses) of ¥(4.3) billion

Ordinary profit of ¥69.2 billion

Note: Like most other life insurers that are organized as joint stock

corporations, Sony Life mainly sells life insurance that is non-

profi t. 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-profi t policies, their income from

insurance premiums includes a portion of fi nancial resources

for policyholder dividends and fi nancial resources for these

dividends are included in core profi ts. For this reason, mutual

corporations tend to show higher core profi ts 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 (for calculating policy reserves)*2

Notes: *1. “Investment yield for core profi t” is the investment income

from the general account that is included in core profi t,

less the provision for policyholder dividend reserves,

divided by policy reserve in general account.

*2. The “average assumed interest rate (for calculating policy

reserve)” is the average of the assumed interest rates used

to calculate policy reserve in general account.

*3. “General account policy reserves” excludes the con-

tingency reserve, calculated as follows: (Policy reserves

at beginning of term + Policy reserves at end of term –

Expected interest) × 1/2.

014


Assets, Liabilities and Net Assets

Assets

Net Assets/Common Stock

Liabilities

We maintained suffi cient policy reserve to cover future insurance claim payments.

¥6,624.9 billion


As of March 31, 2014, Sony Life’s total assets reached

¥6,624.9 billion, up 11.3% from a year earlier.

As of March 31, 2014, net assets totaled ¥369.2 billion,

7.9% higher than one year earlier. As of March 31, 2014,

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 FY2013

totaled ¥6,123.6 billion, which we consider suffi cient.

Total Assets

20142013201220112010

7,500

6,000

4,500

3,000

1,500

0

¥6,624.9 billion

5,952.7

5,222.84,723.3

4,286.5

(Billions of yen)

(As of March 31)

Policy Reserve

20142013201220112010

7,500

6,000

4,500

3,000

1,500

0

¥6,123.6 billion

5,472.9

4,843.04,371.4

3,985.6

(Billions of yen)

(As of March 31)

Total assets, comprising the capital received from shareholders and premiums paid by policyholders, are invested

in securities, property and equipment and other assets. These assets are held in preparation for future insurance

claims and benefi t payments, as well as to maintain the soundness of the Company’s insurance business.

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 ¥369.2 billion. Common stock was ¥70.0 billion.

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

¥6,123.6 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 fi nancial holding company of Sony Corporation,

since April 1, 2004.

015


Real Net Assets

(A) ¥1,346.4 billion/ (B) ¥916.1 billion

As of March 31, 2014, real net assets (A) amounted to

¥1,346.4 billion, down 3.6% year on year, while real net

assets (B) were ¥916.1 billion, up 8.4%. Real Net Assets

20142013201220112010

1,500

1,200

900

600

300

0

¥1,346.4 billion

¥916.1 billion

1,396.8

845.1871.4

715.5606.9 629.1

563.4 583.8

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 fi xed 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 suffi cient 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

refl ected 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 2010 2011 2012 2013 2014

(1) Total amount to be recorded as assets (= + + + – ) 4,268.7 4,703.1 5,379.3 6,503.4 7,056.2

Total assets on the balance sheet 4,286.5 4,723.3 5,222.8 5,952.7 6,624.9

Difference between fair value and balance sheet amount of securities (20.4) (22.1) 155.8 551.7 430.3

Unrealized gain or loss on tangible fi xed assets 2.6 1.9 0.6 (1.0) 1.0

Unrealized gain or loss other than tangible fi xed assets — — — — —

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

(2) An amount calculated based on total amount to be recorded as liabilities

(= – – – – )3,705.3 4,096.1 4,507.9 5,106.5 5,709.8

Total liabilities on the balance sheet 4,095.2 4,507.9 4,958.0 5,610.4 6,255.6

Reserve for price fl uctuations 9.6 16.7 25.3 32.2 41.5

Contingency reserve 48.4 51.5 55.3 59.5 63.6

Part of reserves for future insurance claim payment 318.8 335.3 351.1 373.0 400.2

Excess of amount equivalent to surrender values ( (a)) 316.5 334.2 350.4 372.5 400.0

Unallocated amount in reserve for policyholders’ dividends ( (b)) 2.3 1.1 0.7 0.4 0.1

Deferred tax liabilities for available-for-sale securities 12.8 8.0 18.3 39.0 40.3

Real net assets (A) (1)–(2)

(including unrealized gains and losses on held-to-maturity securities)563.4 606.9 871.4 1,396.8 1,346.4

(3) Unrealized gains and losses on held-to-maturity securities (20.4) (22.1) 155.8 551.7 430.3

Real net assets (B) (1)–(2)–(3)

(excluding unrealized gains and losses on held-to-maturity securities)583.8 629.1 715.5 845.1 916.1

We maintain suffi cient real net assets to maintain sound business operations.

Financial Soundness

Real Net Assets

016


Solvency Margin Ratio

2,358.7%

The solvency margin ratio is an indicator of soundness for

life insurance companies.

Sony Life’s solvency margin ratio remained high. As of

March 31, 2014, this ratio was 2,358.7%, up 76.9

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 suffi ciently to ordinarily anticipated events. However, unforeseen

events sometimes occur as a result of changes in the environment, 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 retain a high level of ability to pay in response to risks from unpredictable events.

(Millions of yen)

Item March 31, 2014

Total solvency margin (A) 954,157

Total risk (B) 80,904

Solvency margin ratio 2,358.7% (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 factor

Third-sector insurance risk (R8) ..............Risk that claims payments on third-sector insurance will rise substantially, owing to a major

disaster or other factor

Assumed interest rate risk (R2) ..............Risk that a downturn in the investment environment will cause a decline in yields on

invested assets

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

variable annuities

Asset 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 rates

Business management risk (R4) ............Risk that exceeds the scope of normal business management risk

Total solvency margin

= [Common stock, etc. + Reserve for price fl uctuations*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 fl uctuations .......... 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 benefi ts in the event that

losses result from the payment of claims and other benefi ts 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.

017


Unrealized Gains on Securities

¥554.7 billion

Unrealized gains on securities in the general account fell,

due to a decrease in unrealized gains on JGBs.

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 bonds and net unrealized

gains on other securities. The totals for securities include fi gures related

to securities held within monetary trusts.

(Reference: As of March 31, 2014, Sony Life assumed unrealized gains on

shares to be zero when the Nikkei Stock Average is ¥8,582 and the TOPIX

index is 696 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

made to third parties. A company’s total loan balance

represents the sum of these two loan balances.

Sony Life’s loan balance at the end of FY2013 was

¥154.2 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 fi nance insurance and pay claims and benefi ts.

Life insurance companies make two types of loans: policy loans and commercial loans. Policy

loans comprise two types, the fi rst of which is policyholder loans, which are limited to the value

of recoverable surrender cash. 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.

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 fi nancial, income and expense information, and sales and management strategies.

¥154.1 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 fi gures listed in the loans by borrower

category are classifi ed as normal loans.

We maintain unrealized gains within our solid asset composition.

(Billions of yen)

As of March 31 2013 2014 Change

Unrealized gains (losses) on securities in the general account 675.0 554.7 (120.3)

Unrealized gains (losses) on held-to-maturity securities 551.7 430.3 (121.4)

Net unrealized gains (losses) on available-for-sale securities 123.2 124.3 1.0

Of which, unrealized gains (losses) on Japanese government and corporate bonds 111.6 110.8 (0.8)

Of which, unrealized gains (losses) on Japanese stocks 6.2 8.9 2.7

Of which, unrealized gains (losses) on foreign securities 4.2 3.5 (0.7)

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 fi gures and information available to them at that time, and are subject to change.

Please refer to each agency’s website for more details.

AAAAAa3AA−

AAAAAa3AA−

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

Financial strength rating

Credit Ratings (Ratings as of July 1, 2014)

018


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 defi ned as the

present value of distributable earnings to shareholders

generated from assets allocated to the covered business

*Copyright©Stichting CFO Forum Foundation 2008

after suffi cient 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 profi t structure in which costs are high in the initial period of a new policy, resulting in losses, and profi ts are made

by recovering these costs during the period of insurance. Consequently, business management cannot be accurately assessed based

solely on results for a single fi scal year.

• This is particularly the case during years when new policy sales are strong, as fi rst-year policy expenses are high, reducing profi t.

• Accordingly, EV is widely used overseas, especially in Europe, as a tool for comprehensively evaluating life insurers.

General Profi t Structure of a Life Insurer

Adjusted net worth

Results of business activities to date

The accumulation of profi t determined in the past

Value of existing business

Expected 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 fi nan-

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 profi ts on in-force business, while

EV indicates the present value of future profi ts on in-force

business together with the company’s adjusted net worth.

Sony Life believes EV serves as a valuable supplement to

the fi nancial 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


019


MCEV

With regard to the trends surrounding MCEV, the CFO

Forum, which is formed by the Chief Financial Offi cers

(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 1,064.7 1,221.3 156.6

Adjusted net worth 770.8 722.1 (48.7)

Value of existing business 293.9 499.1 205.3

New business value 41.6 55.2 13.6

MCEV of Sony Life as of March 31, 2014, is shown in the

table below.

MCEV increased ¥156.6 billion, owing to such factors as

new policy acquisitions, changes in the assumptions on

mortality rates and lapse and surrender rates, and rising

interest rates.

MCEV as of March 31, 2014

Market Consistent Embedded Value

(MCEV)

1,250

1,000

750

500

250

020142013

¥1,221.3 billion

499.1

722.1

293.9

1,064.7

770.8

Adjusted net worth


(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


020


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 affi liated companies are not changed except

for stock market value sensitivity where the stock value of subsidiaries

and affi liated 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 MCEV

Change in

Amount

Base No change 1,221.3 —

Interest rates

100bp decrease 1,003.4 (217.9)

100bp increase 1,256.2 34.9

Swap rates 1,393.8 172.5

Stock/Real estate market value

10% decrease 1,204.8 (16.5)

Stock/Real estate implied volatility

25% increase 1,209.7 (11.6)

Interest swaption implied volatility

25% increase 1,202.7 (18.6)

Maintenance expenses 10% decrease 1,240.7 19.4

Lapse and surrender rates

× 0.9 1,236.4 15.1

Mortality rates

Death protection products × 0.95 1,264.5 43.2

Third-sector and annuity products × 0.95 1,216.0 (5.3)

Morbidity rates × 0.95 1,259.6 38.3

Required capital Regulatory minimum 1,225.3 4.0

(Billions of yen)

MCEV

Opening MCEV (MCEV as of March 31, 2013) 1,064.7Opening adjustment (13.3)Adjusted opening MCEV 1,051.4New business value 55.2Expected existing business contribution (risk-free rate) 13.5Expected existing business contribution (in excess of risk

free rate) 8.3Transfers from value of existing business and required

capital to free surplus —Experience variances 0.5Assumption changes 35.5Other operating variance 0.6Operating MCEV earnings 113.6Economic variances 57.0Other non operating variance (0.7)Total MCEV earnings 169.9Closing adjustments —Closing MCEV (MCEV as of March 31, 2014) 1,221.3

Adjusted Net Worth

Value of Existing Business

(Billions of yen)


Value of existing business 293.9 499.1 205.3

Present value of certainty- equivalent profi t 633.2 869.4 236.2

Time value of options and guarantees (111.2) (123.1) (11.9)

Frictional costs (13.9) (9.2) 4.7

Cost of non-hedgeable risks (214.2) (237.9) (23.7)

The value of existing business is calculated as the present

value of certainty-equivalent profi t (present value of profi t

based on the future cash fl ows 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, 2014, the value of existing business was

up ¥205.3 billion compared with a year earlier, owing to

such factors as an increase in interest rates, new policy

acquisitions and changes in the assumptions on mortality

rates and lapse and surrender 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 770.8 722.1 (48.7)

Total net assets 342.3 369.2 26.9

Reserve for price fl uctuations 32.3 41.6 9.3

Contingency reserves 59.6 63.7 4.1

Reserve for possible loan losses 0.0 0.0 0.0

Unrealized gains or losses on held-to-maturity securities 551.7 430.3 (121.4)

Unrealized gains or losses on land and buildings 19.4 19.4 0.0

Unfunded pension liabilities (5.0) (3.2) 1.8

Intangible fi xed assets (26.1) (23.9) 2.2

Tax effect equivalent of above seven items (193.8) (1,62.5) 31.3

Valuation gains or losses on subsidiaries and affi liated companies (9.6) (12.5) (2.9)

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 fl uctuations, 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 fi xed

assets, and adjusting for the amount of tax effect equiva-

lent to these seven items, on which valuation gains or

losses on subsidiaries and affi liated companies are added.

As of March 31, 2014, adjusted net worth was down

¥48.7 billion compared with one year earlier, as unrealized

gains or losses on held-to-maturity securities fell as a result

of higher interest rates (see right).

The table below shows the reconciliation analysis of MCEV

as of March 31, 2014, from MCEV as of March 31, 2013.

021


Sony Life began disclosing risk amount based on

economic value at the end of FY2011 to foster a deeper

understanding of the Company’s fi nancial soundness on

the basis of economic value.

As of March 31, 2014, Sony Life’s risk amount based on

economic value (after tax) was ¥664.3 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 fl ows 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, 2014. Best-estimate assumptions are developed

to refl ect past and current experiences as well as expected

experiences in the future. Expected future changes in

assumptions should be refl ected only when they are sup-

ported by suffi cient reasons. Except a deteriorating trend

in morbidity rates, no other expected future changes are

assumed in the best-estimate assumptions applied.

As of March 31 (%)

Yen U.S. dollar

Term 2013 2014 2013 2014

1 year 0.06 0.08 — 0.11 5 years 0.13 0.20 — 1.7210 years 0.55 0.64 — 2.7220 years 1.40 1.50 — 3.3730 years 1.54 1.70 — 3.5640 years 1.64 1.78 — —

(%)

Yen U.S. dollar

Term March 31, 2014 March 31, 2014

1 year 0.18 0.27 5 years 0.33 1.8010 years 0.83 2.8420 years 1.61 3.4330 years 1.84 3.5440 years 1.96 3.5650 years — 3.54

We have used JGB and U.S. government bond yields as

of March 31, 2014, 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

* Full information about MCEV including the opinion from Milliman, Inc., is available on Sony Life’s website at http://www.sonylife.co.jp/english/

Note: The above-stated MCEV information is extracted from the information that the Company disclosed regarding MCEV as of March 31, 2014. 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, 2014, from Milliman, Inc.,

which is an external actuarial consulting fi rm with expertise

Opinion of Third-Party Organization

concerning MCEV valuations, based on the Company’s

requests that Milliman review its MCEV calculation

methods, assumptions and calculation results.

(Billions of yen)

As of March 31 2014

Insurance risk 654.5Market-related risk 240.0Operational risk 26.3Counterparty risk 1.3Diversifi cation effect (257.8)

The risk amount based on economic value 664.3

Note: Of market-related risks, interest rate risk was ¥180.9 billion. (This fi gure

is before taking into consideration diversifi cation 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 fi nancial 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 suffi cient

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, with the goal of

enhancing the corporate value of the life insurance

business.

Sony Life’s Basic Policy on Risk Preferences

022


023


024

Protecting Every Dream throughout

Each Individual’s Life.

That’s LIFEPLANNER VALUE.

Providing Tailored Protection and Extensive Follow-Up Consultations

Our corporate slogan, “LIFEPLANNER VALUE,” expresses our commitment to accompanying customers through each life

stage and helping them realize their dreams. To turn these concepts into reality, since our commencement of operations we

have sought to provide each customer with life insurance that is optimally tailored to their individual needs, through consulta-

tions based on life planning. Even after they have taken out life insurance, we provide lifelong support to our customers,

helping them to realize their dreams.

We begin by conducting life planning simulation. This determines the amount of protection that a customer needs to meet

his or her family’s dreams even if the unexpected occurs by calculating the protection amount, plotted on a timeline. Even

after the customer has entered into a policy, we conduct detailed follow-up consultations, reviewing a customer’s ongoing life

plan and insurance coverage as circumstances change.

Sony Life’s Lifeplanner sales employees and Partners (independent agencies) are responsible for providing such

tailor-made protection and extensive follow-up consultations to customers.

LIFEPLANNER VALUE: Four Commitments

We established the “The Four Commitments of

LIFEPLANNER VALUE,” which define the behavioral

principles that we expect all employees to follow. These

principles define the path for achieving LIFEPLANNER

VALUE, expressed through the words “planning,”

“co-creation,” “professionalism” and “society.”

Planning

We are committed to providing customers with

continuous lifelong support, so that they can live

positively every day with peace of mind. We will

help customers to plan their lives as they seek

to realize their dreams.

Professionalism

We are committed to delivering high-quality

services with an emphasis on professionalism

by constantly enhancing the skills and knowl-

edge of each employee, and bringing together

our collective strengths.

Society

By fulfi lling our commitments, we will help to

create a society in which everyone can live with

peace of mind in pursuit of their dreams.

Co-Creation

We value the process of “co-creation,” which is

achieved in the course of meeting with custom-

ers and steadily earning their trust, as we work

closely with each customer to help realize his or

her dreams.

Serving as one team to help customers realize their

dreams, armed with “LIFEPLANNER VALUE” Sony Life

expects each of its employees to take these behavioral

principles to heart, taking them as the basis for each of

the roles they fulfill.


025

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

Lifeplanner Sales EmployeesWe believe it is important to fi rst 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 AgencySony Life Evolves in a New DirectionThe Premier Agency is a new consulting model that Sony

Life has established to deepen its involvement in customer

life planning. Under this model, highly regarded people with

experience as Lifeplanner sales employees and managers

who have become independent establish these agencies,

taking advantage of the extensive expertise and knowledge

they have cultivated to meet customers’ needs by provid-

ing a host of services with life insurance at their core.

We believe that the chaotic environment in which we

operate calls for professionals that have the ability to make

broad-based proposals, leverage their specialized expertise

to address problems and respond promptly to customers’

needs. These are the missions of a Premier Agency.

Premier Agencies work with alliance partners in numer-

ous fi elds to offer support services in such areas as wealth

management, life design, business consulting, business

succession and healthcare. These agencies capitalize on

wide-ranging knowledge and abundant skills to deliver

robust consulting-based sales that accurately meet

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’

fi nancial 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 addi-

tion to agencies 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 specifi c and advanced expertise

through needs-based sales that truly fulfi ll their role as

customers’ partners.


026

Sony Life provides a diverse range of educational programs

designed to enable Lifeplanner sales employees and

Partners to fulfi ll their roles as insurance and fi nancial pro-

fessionals in responding to the confi dence that customers

place in them.

Lifeplanner Sales Employees Training ProgramBasic Training Program (BTP) Through this training, Lifeplanner sales employees learn the

attitudes required to put customers fi rst and the skills,

techniques and habits they need to perform as profession-

als. Lifeplanner sales employees take part in this training

program during their fi rst 36 months after joining the

Company.

At fi rst, employees learn the basics 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 head offi ce. BTP 1 for employees in their fi rst

month after joining the company, BTP 6 centering on the

training covering knowledge and skills for employees after

their second month, BTP 12 focusing on life planning and

BTP 24 concentrating on knowledge, skills and compliance

training, are all held at branch offi ces according to the

branch training process. In parallel, employees undergo

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 confi rm their action

progresses. Before graduating to the next level, employees

take 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, 2014)

Life

pla

nner

sal

es e

mp

loye

esC

erti

fica

tio

n te

stin

g

Bra

nch

trai

ning

pro

cess

Hea

d of

fice

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 fields)

BTP(follow-up training)

BTP(follow-up training)

Branch 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)


027Partner Training System (As of July 1, 2014)

Professional Agent Certifi cation

Partner Training ProgramPartner Training Program (PTP) for PartnersThis program is designed to help Partners succeed in

the life insurance business. In the 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 certifi cation 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

rational 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 predefi ned levels for

performance and qualifi cation 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 suffi cient 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, six months Flight plan, seven months

Sony Life Business College

Partner Training Program

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

Cer

tifi

cati

on

test

ing

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 fields)

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


028

Our socioeconomic environment is undergoing major

changes, owing to the advent of the information-oriented

society, reforms to the social security system, diversifi cation

of fi nancial products and a demographic shift to an older

population. In these circumstances, it is vital for individuals

to conduct comprehensive asset planning and risk man-

agement—or fi nancial planning—geared to their specifi c life

plans. Financial planners are professionals qualifi ed to meet

the fi nancial planning needs of customers. A large number

of Lifeplanner sales employees study fi nancial 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 fi scal 2003

to train its branch general managers, the heads of its inde-

pendent Agency Sales Division and head offi ce general

managers. In April 2007, we also launched a course called

“Life Insurance Basics” for unit managers, Independent

Agency Sales Group offi ce managers and head offi ce man-

agers. As of March 31, 2014, 347 people had undergone

SLA training. Course instructors include university profes-

sors 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 independently learn to grow into

higher quality insurance professionals.

SLA helps Sony Life’s managers brush up their own guidance,

leadership and personal skills.

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

CERTIFIED FINANCIAL PLANNER® (CFP®)

AFFILIATED FINANCIAL PLANNER (AFP)

Our branch general managers, unit managers and other managers who oversee sales staff have an important responsibility

to carefully nurture selected individuals into Lifeplanner sales employees. To help managers fulfi ll this responsibility, Sony Life

continues to upgrade its educational system, which includes training to deepen understanding of the essence of life insur-

ance, develop character and acquire leadership skills.

People with 1st Grade Credential: 116People with 2nd Grade Credential: 2,824

(As of June 1, 2014)

Through the Human Resources Development

Promotion Law, the Japanese government has intro-

duced a profi ciency certifi cation system to certify

levels of expertise in various fi elds, including 1st,

2nd and 3rd grade Certifi ed Skilled Worker of

Financial Planning Credentials.

People with AFP credential: 831(As of June 1, 2014)

The Japan Association for Financial Planners is the

sole issuing authority for the AFP license. This quali-

fi cation certifi es that the licensee possesses the

knowledge required of a fi nancial planner and is

competent to offer advice and make proposals in

response to client needs.

People with CFP® credential: 76(As of June 1, 2014)

The CFP license is an international qualifi cation

conferred by the CFP Board of Standards, Inc., of

the United States. This is an authoritative qualifi ca-

tion given only to fi nancial planners who demon-

strate advanced fi nancial planning abilities and

sound work ethics.


029

Reciprocal Studies

MDRT is an international

association of the world’s lead-

ing life insurance and fi nance

professionals. The organization

has 38,000 members in 74

countries and regions (as of

August 2013).

Each year, leading insurance

and fi nancial 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 pro-

viding 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 branch general managers participate in JAIFA events, and as of April 1,

2014, 34 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 JAIFA

in 2002. Certifi ed in April 2012 by the Cabinet Offi ce 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 an everyday basis.

regional community leaders are recognized worldwide as

life insurance and fi nancial service specialists.

As of June 1, 2014, 716 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 (Miyazaki, October 2013)

JAIFA All Sony liaison meetings and workshops

(Tokyo, April 2014)


030


Securing the Future for Our Customers

Consulting-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-

cifi c 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 rationally fi ts 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 a potential customer’s plans,

dreams and timeline, 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.

031


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 benefi t 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.

The Sony Life Letter, available on the Web, outlines coverage in easy-to-understand terms.

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 an email magazine containing the latest information in medical treatment and nursing care.

Note: Customers need to register for Web service before using the consultation desk.

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

032

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)


Our LiPPS software connects specifi c 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 fi rst 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


033

Next we run simulations to factor in the unexpected. We clarify the shortfall in the amount of money that would be

suffi cient to allow the bereaved family to live comfortably in the case of untimely death.

At Life Planning SQUARE, the showroom Sony Life operates in the Sony

Building in Ginza, Tokyo, the Company aims to share the importance of the

life planning process with as many people as possible in an enjoyable manner.

A wealth of content is available at Life Planning SQUARE to help cus-

tomers experience the life planning process. Sony Life’s Lifeplanner sales

employees are also on hand to perform life planning with customers fi rsthand.

Furthermore, we conduct banking agency business on behalf of Sony Bank,

setting up ordinary yen deposit accounts and delivering applications for Sony

Bank’s mortgage loan products.

Life Planning SQUARE, Our Life Planning Showroom

Note: This facility does not write new life

insurance policies or perform policy

content change procedures.

<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 confi rm whether the life plan is viable fi nancially.

• 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 case of 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 Coverage

To 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


034

Sony Life introduced the C-SAAF* follow-up consulting system in

FY2012. In addition to serving as a renovated sales support system

that centers on our pioneering LiPPS simulation system (see page 30)

for life planning, the new customer management system eliminates

the need for paper in life insurance application procedures.

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. The result is 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 custom-

er’s policy information simply by tapping on the customer’s communi-

cation 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 confi rm 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 notifi cation 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



035

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 search customers

by name, defi ne specifi c customer attributes such as their communi-

cations provider, refer to policy content and conduct various trial

calculations, refer to the Sony Life Letter (see page 36) and conduct a

host of other processes. The system also automatically drafts neces-

sary documentation for changes in coverage, policyholder loans and

the payment of insurance claims and benefi ts.

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 fi rst 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 specifi c to their

current needs and conduct more closely tailored follow-up activities.

SLIM

Sony Life’s C-SAAF was a winner of Best Mobile Application at the 2013

Asia Insurance Technology Awards. These awards are presented jointly

by Celent, a global consulting fi rm that concentrates on fi nancial institu-

tions’ business and technology strategies, and Asia Insurance Review,

an insurance-industry periodical. The “Best Mobile Application” award

recognizes the insurer who has exhibited true innovation in the use of

mobile technology and has developed a unique and compelling applica-

tion not seen elsewhere in the industry. C-SAAF earned high marks for its

contributions to technological innovation and business process effi ciency,

as well as to the benefi ts it provides customers.

Winner of the 2013 Asia Insurance Technology Awards

Award reception ceremony


036

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 fl uctuations in the social environment. Each year we send out the

“Sony Life Letter” to help customers confi rm 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, money 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 benefi ts.

Confi rming Policy Content, Handling Various ProceduresCustomers can use personal computers, smartphones and other

mobile phones to confi rm policy content and handle various

procedures.

Consultation in the Event of Illness, Nursing Care or Other Diffi cultyHealth, Medical Treatment and Nursing Care Consultation DeskPolicyholders who register with our Customer Web Service can

access our Health, Medical Treatment and Nursing Care Consultation

Desk, giving them telephone access to specialist physicians, health

nurses and clinical nurses.

The policy is only the fi rst step. As customers’ lifestyles and the environment that surrounds them is in constant fl ux, 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


037

System of Claim Payment Operations

Status of PaymentsThe following information represents the status of payments made against requests for payment received in FY2013. The

cases described below were recorded in accordance with standards drawn up by the Life Insurance Association of Japan.

Policies on Which Payments Were Made in FY2013 (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 policyhold-

ers 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 opera-

tions, 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 appropriate-

ness, which are verifi ed 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

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

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 benefi t payment

requests, as well as these payments. The guidebook

contains information on the procedures for making a

claim and includes specifi c examples of cases in which

claim payments can and cannot be made.

(Instances)

Claims

Death Disaster

Severe

Injury Other Total

Number paid 4,678 47 196 1,799 6,720

(Instances)

Benefi ts

Death

Hospital-

ization Surgery

Severe

Injury Other Total

Number paid 2,452 124,418 79,057 55 11,619 217,601

(Instances)

Claims

Death Disaster

Severe

Injury Other Total

Invalid, as fraudulent 0 0 0 0 0Invalid, as acquired for illegal purchases 0 0 0 0 0Cancelled for nondisclosure reasons 2 0 0 13 15Cancelled for grave reason 0 0 0 0 0Justifi ed exclusion 67 2 0 0 69Outside scope of reasons for payment 4 0 95 10 109Other 0 0 0 0 0

Total 73 2 95 23 193

(Instances)

Benefi ts

Death

Hospital-

ization Surgery

Severe

Injury Other Total

Invalid, as fraudulent 0 0 0 0 0 0Invalid, as acquired for illegal purchases 0 0 0 0 0 0Cancelled for nondisclosure reasons 1 327 180 0 13 521Cancelled for grave reason 0 0 0 0 0 0Justifi ed exclusion 31 42 19 0 0 92Outside scope of reasons for payment 0 161 9,957 22 25 10,165Other 0 8 6 0 26 40

Total 32 538 10,162 22 64 10,818

Payment Operations Structure

Fundamental Policy on Payment Operations


038

Service Improvements That Begin with

Customer Input

Implementation, reporting

Requests for improvement

Headquarters divisions

Business Administration Control Division

Legal Division

Agency Office Sales Planning Division

Customer center

Sales Administration Division

Agency Office Planning & Promotion Division, Independent Agents

Planning Division, Operations

Planning Division

Supervisory departments

MCC Committee

VOC Committee

Reporting, assignment




Disclose improvement status

Supervisory body, Life Insurance Association

of Japan, other

Life Planning SQUARE

Co-Creation Planning Division

Corporate Planning Division

Lifeplanner Promotion Division

Executive Officers Board

VOC Division

Gather, analyze, evaluate, propose improvements

and determine progress on customer feedback (VOC)

*Voice Of Customer = many different types of customer feedback

Customer satisfaction surveys

Contacts

Customer center

Website

[Agency offices]

Branches, independent agents and clerical offices

Cus

tom

er in

put

Pro

vid

e hi

gh-

qua

lity

serv

ices

Rai

se c

usto

mer

sat

isfa

ctio

n

Improvement planningImprovement implementationResult verification

Sony Life takes customer input seriously, paying careful attention to customer satisfaction and using customer input as a

starting point for improving services. By gathering and accumulating the customer input 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 input 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 Input in Management

Initiatives to Refl ect Customer Input (VOC*) in Management (As of July 1, 2014)


039

Defi nition 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 ResurfacingWe 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

FY2011 FY2012 FY2013

Number Percentage Number Percentage Number Percentage

Subscribing to

insurance policy 3,660 17.5 4,388 16.7 4,793 13.2

Premium payments 2,631 12.6 3,328 12.7 5,098 14.0

Processes and

dividends after

joining policy 8,662 41.4 11,453 43.6 16,347 45.0

Payment of claims

and benefi ts 2,067 9.9 2,455 9.3 3,573 9.8

Other 3,889 18.6 4,651 17.7 6,526 18.0

Total 20,909 100.0 26,275 100.0 36,337 100.0

Note: Numbers of complaints and percentages are as of the annual report

publication date for each fi scal year.

Financial Alternative Dispute Resolution (ADR) System

A fi nancial 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 fi nancial 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 fi nancial 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 Input 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

FY2011 FY2012 FY2013

Number Percentage Number Percentage Number Percentage

New policies,

requests for

materials 80,181 20.3 68,616 18.4 53,579 13.8

Loans, surrender

cash referrals 61,731 15.6 63,639 17.0 66,255 17.0

Receipt-related 11,571 2.9 12,794 3.4 12,723 3.3

Claims and benefi ts 17,575 4.4 19,331 5.2 24,520 6.3

Other maintenance 190,000 48.0 166,207 44.5 163,476 42.0

Taxes, exemption

certifi cation 5,969 1.5 5,451 1.5 10,243 2.6

Other 28,659 7.3 37,243 10.0 58,297 15.0

Total 395,686 100.0 373,281 100.0 389,093 100.0

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.


040

Risk Management System

The environment in which life insurance companies operate

is growing increasingly diverse and complex, owing to such

factors as fi nancial market fl uctuations, changes in the

population structure and advances in healthcare and infor-

mation technologies. Against this backdrop, managing the

various types of risk that we face—such as market-related

risk, insurance underwriting risk, operational risks and legal

risk—as well as appraising the overall risk situation and

managing accordingly, has become an increasingly impor-

tant part of our efforts to grow and remain true to our mis-

sion. We must also ensure appropriate returns that are

commensurate to the related risks, while putting in place

systems to ensure that we respond appropriately if risks

materialize.

Sony Life recognizes that measures to enhance its risk

management organization are an important way to ensure

its fi nancial soundness and enhance corporate value, as

well as to manage risk, profi ts and capital in an integrated

fashion, and pursues such initiatives to this end. As part of

these efforts, Sony Life formulated Enterprise Risk

Management (ERM) Guidelines that clarify risk preferences

based on its management direction and strategic objec-

tives. We are also working to reinforce our risk manage-

ment through ongoing initiatives to manage risks on the

basis of economic value.

Specifi cally, we manage risk on an economic basis, seek

to appropriately control risk amounts based on economic

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

fi nancial 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, 2014)

General Meeting of Shareholders

Board of Directors Board of Auditors

Internal Audit Division


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


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

DivisionCompliance Division

Liquidity risks ALM Division

Reinsurance riskMarket risk

Credit risk

Real estateinvestment risk

Market-related risksALM Division

Business Offices

value and are enhancing our risk management. We have

also assigned divisions to each of the risks the Company

faces, and the Risk Management Committee, which

includes the general managers of the divisions responsible

for the Company’s risk management, meets to discuss

various companywide risk management issues.

Furthermore, Sony Life performs stress tests in order to

evaluate the possible impact on its fi nancial soundness of

future unprofi tability and conducts additional management

and/or fi nancial measures. The Company conducts stress

tests based on a worst-case scenario whereby interest

rates, share prices and currency exchange rates all fall sub-

stantially 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.

In its fundamental regulations on risk management, Sony

Life sets forth its fundamental risk management approach

and methods.


041

Specifi c Risk Management Defi nitions and Procedures

Market-related risksMarket-related risks refer to the risk of suffering losses

due to fl uctuations in the values of assets and liabilities.

Specifi cally, 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

adequate levels of 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 fl uctuations 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 risk and exchange

rate risks. In addition, Sony Life establishes risk and other

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 fi nancial conditions of parties pro-

viding credit facilities. When investing overseas, investments

are subject to country risk, which refers to the potential

diffi culty 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 fl uctuations 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 fulfi ll specifi ed 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

fl uctuations 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 benefi t 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 offi cers, 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 and undertakes periodic audits 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.


042

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

service providers, Sony Life has developed internal regula-

tions regarding the monitoring of third-party service provid-

ers 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 stems from the worsening of cash fl ow in

the event that deteriorating fi nancial conditions cause

a decrease in new policies, resulting in lower premium

income; an increase in surrender payments due to cancel-

lations in a large number of or a large-scale cancellation; or

cash outfl ows resulting from a massive disaster. Liquidity

risk is classifi ed into “fund fl ow risk” and “market liquidity

risk.” Fund fl ow risk refers to the risk of suffering losses if

assets must be sold in adverse conditions 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, rules or 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, defa-

mation and other forms of criticism related to anti-social

infl uences. 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 fl uctuations 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 confi rms 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 consideration recent changes in

the expected accident rate related to certain types of third-

sector insurance, and this reserve stood at ¥4,577 million

as of March 31, 2014.

Stress Test and Liability Adequacy Test for Third-Sector InsuranceUsing various settings for each product, the stress test

confi rms risk coverage given the expected rate of accident

occurrence and computes the contingency reserve on this

basis. We confi rm that the level of the expected rate of

accident occurrence covers the amount of future benefi ts

(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 profi t are suffi -

cient to cover the amount of future benefi ts in the event

that the results of the stress test indicate insuffi cient cover-

age of the amount of future benefi ts (10 years) using the

insured accident rate (hazard rate B), which is equivalent to

the risk that exceeds the normally expected scope. If fi nan-

cial resources, including additional sources of income and

profi t, are insuffi cient to cover the benefi t, that amount

corresponding to that shortfall need be accumulated as

policy reserves.

The methods for the stress test and liability test are

stipulated by law, but the hazard rate and other factors

used in these tests are based on Ministry of Finance Offi cial

Notifi cation No. 231.

Liability adequacy test assumptions are based on

Financial Supervisory Agency, Ministry of Finance Offi cial

Notifi cation No. 22.

Stress Test and Liability Adequacy Test ResultsThe stress test and liability adequacy test results as of

March 31, 2014, are given below.

Accumulating Policy Reserves for Third-Sector Insurance

Stress test

(accumulated contingency reserve) ¥16 million

Liability adequacy test

(accumulated premium reserve) Not insuffi cient

Note: Policy reserves are segmented into accumulated premium reserve, prepaid

insurance premiums and contingency reserves.


043

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 defi ning appropriate actions with regard to per-

sonal information. We also conduct internal information

security training 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 managers to each department that handles

personal customer information. We have also created

a fl ow of operations that ensures effective protection of

personal information and upgrade regularly our training

system for employees. In addition, we have established

the Committee to Promote the Security of Personal

Information as a subcommittee to the Executive Offi cers

Board 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 diversifi ed. Companies can now use sophisticated networks to store and handle

important data. Protecting private information is thus becoming more important than ever.

To conduct their business properly, life insurance companies need confi dential information about their individual custom-

ers. To enhance convenience for customers, Sony Life uses networks as part of its policy of delivering the most advanced

services. 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 diversifi cation 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 benefi t 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 benefi ts 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 benefi ts 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

Lifeplanner SalesGroup agency

offices

Information Manager(Branch General Manager)

Security Administrator

Independent AgencySales Group

sales divisions

Information Manager(Sales General Manager)Security Administrator

Headquarterdivisions

Information Manager(General Manager)

Security Administrator

Board of Directors


Protection of Personal Information Promotion Committee


044

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.

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 in handling

personal information.

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 benefi ciaries of insurance policies, and to pay

claims and other benefi ts

(2) To enable Sony Life and its affi liated 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, modifi cation, 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 confi rming suffi cient 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 or 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 or

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 certifi cation 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 Property

To 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.

Offi ce Security Measures Only authorized employees are allowed access to offi ce

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


045

First Company in Industry to Obtain Information Security Management System (ISMS) Certifi cationOn June 27, 2003, Sony Life became the fi rst company

in Japan’s life insurance industry to obtain BS7799–Part 2

and ISMS certifi cations. The certifi cations were bestowed

on the Company’s administrative departments. As

BS7799–Part 2 certifi cation content was adopted by

ISO certifi cations and Japanese ISMS standards were

enhanced on a par with ISO standards, on June 22, 2006,

we shifted our certifi cation to ISO/IEC 27001: 2005 (JIS Q

2007: 2006). 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 falsifi cation affecting all of our informa-

tion assets, including customer information, and formulate

and take measures designed to minimize such dangers.

To earn certifi cation, we implemented those measures

on schedule, regularly confi rmed that the measures had

the desired effect and built and operate frameworks for

enforcing all of the improvements required for certifi cation.

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 falsifi cation 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 specifi c 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


046

Sony Life has established the Compliance Committee,

which reports to the Executive Offi cers Board 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 compa-

nywide compliance programs and draft measures needed

to address individual issues and conduct operations. In

each division, we have placed compliance supervisors,

who conduct routine checks of compliance status and

create compliance systems, and compliance offi cers, who

offer advice on creating compliance systems and check the

status of their creation.

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 fulfi lls 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

confi rm the status of solicitation and internal management

and expand these activities, conducting and promoting

these efforts in cooperation with related departments.

Compliance

To fulfi ll 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 defi nes our basic stance for ensuring

appropriate compliance. In addition to laws and regula-

tions, this declaration defi nes 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 offi cers 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 crucial issue for companies seeking to fulfi ll their social responsibilities. Life insurance companies 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 confi dence.

Compliance Structure Basic Stance on Compliance and Code of Conduct

Basic Principles Compliance with laws, internal policies and

regulations, business operations conducted

ethically and in good faith; appropriate risk

management, customer-fi rst 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, confl icts of

interest, etc.

Each fi scal year, we formulate a compliance program

containing specifi c 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 specifi c to their tasks.

Board of Directors


Compliance Committee(Secretariat: Compliance Division)

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

Lifeplanner SalesGroup agency

offices

Independent AgencySales Group

sales divisions

Headquarters divisions

Compliance Officers


047

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 a Professional As life insurance professionals, we provide thoroughly

high-quality service that includes compliance with laws

and regulations, broad-ranging expertise that covers

economics, fi nance, 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. Confi rming 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 confi rming the

purpose of application, the customer’s level of under-

standing of and experience with fi nancial products, and

fi nancial 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 misidentifi cation of fi nancial products We clearly explain life insurance products to avoid their

confusion with non-life insurance products, investment

trusts, deposits or other fi nancial 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 misidentifi cation with life

insurance products.

7. Handling of notifi cation 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 fulfi ll this duty can

result in policy cancellation or be disadvantageous to the

customer’s interest.

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

confi rm their identify 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, confi rming 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, benefi ts and other

items. Furthermore, we take customers’ situations and

policy content into consideration when responding

to inquiries about decision on whether to pay claims,

benefi ts 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 fi nancial security throughout the customer’s life. In these ways, we endeavor to fulfi ll our social responsibilities and public mission as a fi nancial institution.

MCC Guidelines (Policies on Marketing Activities)

Sony Life has formulated the MCC Guidelines to indicate its

policy on sales activities and ensure thorough compliance

when performing these activities. The MCC Guidelines out-

line basic items for attention to protect customers’ interests

when Sony Life’s Lifeplanner sales employees and Partners

(independent agencies) conduct marketing activities,

including insurance solicitation and maintenance.

Market Conduct Compliance (MCC) Guidelines


048

management 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 Confl icts of

Interest is provided below.

1. Sony Life Group CompaniesConflicts of interest are managed for the companies indicated

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 companies

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 subsid-

iary financial institutions that are the targets of protection by the

Company’s conflict of interest management.

3. Types of transactions involving potential confl icts of interestSubject 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 confl icts of interestTo ensure that conflicts of interest are managed appropriately,

the director in charge of the Compliance Division has been

given overall responsibility for managing conflicts of inter-

est. 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 measures that have been selected appropriately, or in some

combination of these.

(1) Separating of the department conducting the Subject

Transactions from the customer (isolating information)

(2) Changing the Subject Transaction or customer conditions

or methods (changing conditions or methods)

(3) Discontinuing Subject 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. RecordingThe division that has the overall responsibility for managing

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 Confl icts of Interest

In accordance with the Insurance Business Law and the

Financial Instruments and Exchange Law, the Company

has established a Policy on Managing Confl icts of Interest

to ensure that transactions by Sony Life Group companies

with regard to business by the Company or its subsidiary

fi nancial institutions do not cause unjustifi able harm to their

customers. The policy outlines the appropriate

Policy on Managing Confl icts of Interest

unequivocally. Sony Life’s Basic Policy on Internal Control

System Structure establishes a basic policy for eliminating

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 preparations accordingly.

We are duly aware of the importance of isolating ourselves from relationships with anti-social forces from the perspectives of social responsibility, compliance and corporate defense. We have in place systems to isolate ourselves from relationships with anti-social forces, and we reject all inappropriate demands from anti-social forces. We have strengthened our communications with police and other outside organizations to ensure that we are able to coordinate our actions and cooperate appropriately should we receive an inappropriate demand from anti-social forces. In such ways, we maintain a firm organizational resolve to extirpate inappropriate demands.

Basic Policy on Eliminating Anti-Social Forces

Companies are to maintain a high regard for compliance

and manage themselves in a manner that includes no

involvement with anti-social forces. At the same time, if a

company receives an inappropriate demand from such

forces, the company must reject that demand

Basic Policy on Eliminating Anti-Social Forces


049


050

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 Certifi cationIn March 2001, Sony Life acquired ISO 14001 certifi cation,

the international standard for environmental management

systems, for its head offi ce, and has since kept its

certifi cation 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.

Refl ecting 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). Certifi cation is given to

entities that review their environmental management systems

annually, take action to address diffi cult 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 certifi cate verifi es Sony Life’s

purchase of 250,000 kWh of

electricity generated from Noshiro

Biomass Power Plant

FY2013 Green Power Certifi cate

Sony Life’s Environmental Conservation Activities

Green Power Certifi cation SystemsIn FY2005, Sony Life introduced a green power certifi ca-

tion 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 FY2007, Sony Life has been purchasing certifi -

cates for energy generated from wood-chip biomass,

rather than wind-powered generation.


051

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-profi t organization engaged in global

warming prevention. The Sorabear Foundation uses the

Environmental Preservation Activities with Customers

Ceremony to commemorate the donation of a Sorabear power

generator at the Shiun Nursery School in Shiga 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 FY2012. 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.

donations from Sony Life to install solar power generation

equipment at nursery schools and preschools throughout

Japan. In FY2013, our third such installation went into

place at a nursery school in Shiga Prefecture. Sony Life will

continue to participate in environmental conservation

activities and support the Sorabear Smile Project.


052

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 locations

Great East Japan Earthquake reconstruction support• Otsuchi-cho festival

• Yamada-cho festival

• Summer festival at temporary

housing in Kessennnuma

• Summer festival at Midorigaoka/

Tomita-cho

• Debris removal and fi eld preparation

in Onagawa-cho

• Year-end soba noodles at temporary

housing in Kessennuma

• Aquamarine Fukushima aquarium tour

Tohoku

• Relay for Life, eight locations

• Rooting for J-League in sign language

• Clean-up volunteers, blood donation

• Kobo Aijien/Shunko Gakuen barbecue

• Social event at St. Francis children’s

dormitory

• A Yokohama tennis competition for people

with disabilities

Kanto

• Relay for Life, fi ve locations

• Kinjo Rokkaen support

Tokai

• Relay for Life, three locations

• Support for Matsuyama care

facilities

Shikoku• Relay for Life, fi ve locations

• Oita International Wheelchair

Marathon

Kyushu

Sony Life Volunteer Club

• Relay for Life, one location

Hokkaido

• Relay for Life, two locations

Koshinetsu/Hokuriku

• Relay for Life, four locations

Emotional support for victims of the Great Hanshin/Awaji Earthquake• Kobe Fureai spring festival

• Kobe Fureai onsen 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.


053

Volunteer Day ActivitiesSony Life designates August 10, the anniversary of its

founding, as Volunteer Day. This is a special day when all

employees are encouraged to consider and implement

activities that benefi t their communities, such as area

cleanups and blood donations. August has been declared

Volunteer Enrichment Month, in which all employees

throughout Japan implement social benefi t activities in their

respective communities.

Clean-up volunteers

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

19 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 Christmas parties

to deepen mutual relations.

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 FY2013, more than 2,400 people took part in the relay,

mainly branch employees at 32 locations throughout

Japan, as well as family members and customers. 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 clean-up 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


054

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-fi nish

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 a 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 fl ower-fi lled planters including

support messages from Sony Life branches and

headquarters offi ces 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

qualifi cations.

Preparing mealsSummer festival

Cleaning windows

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

A Yokohama tennis competition for people with disabilities


055

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

disabilities gain independence and participate in society.

Our support of Special Olympics Nippon is based on this

conviction.

In 2014, numerous employee volunteers participated in

the Special Olympics Nippon Summer National Games

Fukuoka. In addition to competitions such as these, vol-

unteers are active in helping to establish regional organi-

zations and serving as coaches during daily sports

training sessions.

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

Special Olympics Nippon is a public-interest incorporated

foundation that provides people with intellectual disabilities

with ongoing year-round sports training opportunities and

holds athletic competitions to demonstrate their accomplish-

ments and give them an opportunity to participate in society.

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

Since its introduction of the fi rst 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.

Volunteers help manage the games.

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 FY2013,

¥12.12 million in employee donations and matching funds

was given to Eye Mate, Inc. This fi gure brings cumulative

donations to Eye Mate to ¥171.37 million (¥191.69 million

including other organizations), making Sony Life one of the

largest among corporate and other organizations. This

year’s donation provides the equivalent of 28 “Eye Mate”

seeing-eye dogs.

Regional and Community Contributions

Employee’s child experiences walking with a

seeing-eye dog.

Teaching a seeing-eye

dog to open and close

doors.

Seeing-eye dogs learning to wait at his

master’s feet.


056

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 36th staging of this traditional event, which has

attracted a cumulative total of more than 370,000 players.

At tournament qualifi ers 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.

Opening ceremony

The national fi nals

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 head-

quarters, 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)


057

Consulting by Lifeplanner sales employees to help realize

those dreams

Award for Excellence in the Fourth Career Education AwardsSony Life won a Top Award for Excellence (Minister of Economy, Trade and Industry Award) at the FY2013 Fourth Career

Education Awards*, sponsored by the Ministry of Economy, Trade and Industry, in the large company division for its

“courses about life planning.” As one aspect of its social contribution activities, the Company proactively promotes

ongoing education about life planning.

Life-Planning Courses by Lifeplanner Sales EmployeesSince FY2005, 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

fi rst asks customers about their dreams and future goals.

Based on this information, we work with each customer to

map out a specifi c 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. Childbirth necessitates

plans for education, buying a house and helps them

imagine other future events that might require planning.

Next, the course takes on an economic focus, looking at

the fi nancial resources that are needed. Lifeplanner sales

employees offer advice, using Sony Life’s proprietary

Contributing to the growth of students and youth

Students dreaming up their futures as they participate in

life planning

T O P I C S

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, 2014, Sony Life had held life-planning courses at 614 schools throughout Japan.

(Schools)

Private Public Total

Junior High Schools 21 86 107

High Schools 116 312 428

Colleges and Vocational Schools 28 1 29

Universities 39 3 42

Others 4 4 8

Total 208 406 614

(Schools)

Activities by Fiscal Year Schools (Continuing)

FY2006 3 —

FY2007 21 3

FY2008 56 9

FY2009 97 31

FY2010 100 31

FY2011 93 56

FY2012 100 54

FY2013 134 67

FY2014 (As of July 1) 10 5

Schools 614

Students attending 58,500

As of July 1, 2014

Life-Planning Courses to Date

* The Career Education Awards are an award system that the Ministry of

Economy, Trade and Industry introduced in 2010 to encourage and promote

educational support efforts by companies and economic organizations.


058

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 FY1996 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 fi scal 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 FY2002, Sony Life became the fi rst 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

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 fl exible 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

separate from their regular holidays, for the period

necessary to donate bone marrow for transplants.

Fostering Pleasant Workplaces

As of April 31, 2014, 29 people with visual disabilities

were employed in 16 locations throughout Japan, also

contributing to employee health through their massage

services.



059


059

Sony Life Financial Data (Non-consolidated)

060 Balance Sheets

062 Statements of Income

065 Statements of Changes in Net Assets

067 Statements of Cash Flows

068 1. Loans by Borrower Category

068 2. Risk-monitored Loans

068 3. Accounting Indicators

073 4. Reconciliation to Core Profi t and

Non-consolidated Ordinary Profi t

075 5. Fair Value Information on Securities

(General Account)

079 6. Fair Value Information on Securities

(Company Total)

Performance Indicators of Sony Life (Non-consolidated)

085 1. Key Performance Indicators for Past Five Years

086 2. Key Performance Indicators

093 3. Indicators for Insurance Policies

094 4. Indicators Related to Asset Management

(General Account)

102 5. Status of Insurance Claims Paying Ability

103 6. Balance of Separate Account Assets

103 7. Status of Individual Variable Life Insurance and

Individual Variable Annuities

104 8. Number of Agencies

104 9. Number of Employees and Recruits

105 10. Average Salary

Financial Data

Sony Life

Financial Data (Non-consolidated)


060

Balance SheetsSony Life Insurance Co., Ltd.

As of March 31, 2013 and 2014

(Millions of yen)

2013 2014

Amount

Composition

(%) AmountComposition

(%)

Assets:

　Cash and deposits ¥ 27,373 0.5% ¥ 15,827 0.2%

　　Cash 28 4

　　Deposits 27,344 15,823

　Call loans 97,088 1.6 34,628 0.5

　Monetary trusts 306,122 5.1 305,346 4.6

　Securities 5,211,535 87.5 5,954,716 89.9

　　Japanese government bonds 4,669,003 5,316,110

　　Japanese municipal bonds 10,208 3,869

　　Japanese corporate bonds 41,092 38,746

　　Japanese stocks 61,884 70,442

　　Foreign securities 275,439 342,187

　　Other securities 153,906 183,359

　Loans 145,104 2.4 154,219 2.3

　　Policy loans 145,019 154,180

　　Commercial loans 85 38

　Tangible fixed assets 70,969 1.2 67,100 1.0

　　Land 31,089 30,103

　　Buildings 39,212 36,429

　　Leased assets 185 19

　　Other tangible fixed assets 482 548

　Intangible fixed assets 26,102 0.4 23,869 0.4

　　Software 26,092 23,859

　　Other intangible fixed assets 9 9

　Due from reinsurers 100 0.0 138 0.0

　Other assets 53,023 0.9 53,787 0.8

　　Other receivables 31,358 30,954

　　Prepaid expenses 1,543 1,532

　　Accrued income 15,377 16,600

　　Money on deposits 4,185 4,182

　　Advance payments 379 400

　　Others 179 117

　Prepaid pension costs 1,841 0.0 1,867 0.0

　Deferred tax assets 13,724 0.2 13,643 0.2

　Reserve for possible loan losses (235) (0.0) (242) (0.0)

Total Assets ¥5,952,750 100.0% ¥6,624,903 100.0%



061

(Millions of yen)

2013 2014

Amount

Composition


(%)

Liabilities:

　Policy reserves and others ¥5,501,850 92.4% ¥6,152,574 92.9%

　　Reserve for outstanding claims 24,646 24,702

　　Policy reserves 5,472,930 6,123,633

　　Reserve for policyholders’ dividends 4,273 4,237

　Due to agencies 2,431 0.0 2,169 0.0

　Due to reinsurers 547 0.0 567 0.0

　Other liabilities 49,844 0.8 32,812 0.5

　　Accrued income tax 15,586 8,702

　　Other payables 1,222 1,213

　　Accrued expenses 14,079 13,566

　　Unearned income 907 939

　　Deposits received 1,090 823

　　Deposits received for guarantee 5,307 5,058

　　Derivative liabilities 172 　　Lease obligations 243 21

　　Asset retirement obligations 656 654

　　Policy suspense and other suspense 10,577 1,832

　Reserve for employees’ retirement benefits 22,770 0.4 25,389 0.4

　Reserve for directors’ retirement benefits 171 0.0 66 0.0

　Reserve for price fluctuations 32,264 0.5 41,556 0.6

　　Reserve for price fluctuations 32,264 41,556

　Deferred tax liabilities on land revaluation 536 0.0 536 0.0

　Total Liabilities 5,610,417 94.2 6,255,673 94.4

Net Assets:

　Common stock 70,000 1.2 70,000 1.1

　Capital surplus 5,865 0.1 5,865 0.1

　　Capital reserve 5,865 5,865

　Retained earnings 187,698 3.2 211,461 3.2

　　Earned reserve 15,478 18,138

　　Other retained earnings 172,219 193,323

　　　Unappropriated retained earnings for the period 172,219 193,323

　Total shareholders’ equity 263,563 4.4 287,327 4.3

　Net unrealized gains on other securities, net of taxes 80,283 1.3 83,416 1.3

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

　Total valuation and translation adjustments 78,769 1.3 81,903 1.2

　Total Net Assets 342,333 5.8 369,230 5.6

Total Liabilities and Net Assets ¥5,952,750 100.0% ¥6,624,903 100.0%



062

Statements of IncomeSony Life Insurance Co., Ltd.

For the years ended March 31, 2013 and 2014

(Millions of yen)

2013 2014

Ordinary Revenues ¥1,142,274 ¥1,197,109

　Income from insurance premiums 925,874 960,986

　　Insurance premiums 924,472 959,660

　　Ceded reinsurance commissions 1,402 1,325

　Investment income 199,833 212,323

　　Interest income and dividends 108,539 122,160

　　　Interest income from deposits 0 0

　　　Interest income and dividends from securities 92,167 106,187

　　　Interest income from loans 5,450 5,691

　　　Rent revenue from real estate 10,854 10,250

　　　Other interest income and dividends 67 31

　　Income from monetary trusts, net 5,259 5,311

　　Gains on sale of securities 2,420 773

　　Gains on redemption of securities 2

　　Gains on derivatives, net 172

　　Foreign exchange gains, net 1,183

　　Other investment income 13 47

　　Gains on separate accounts, net 83,601 82,670

　Other ordinary income 16,566 23,799

　　Income for annuity riders 2,087 2,151

　　Income for deferred payment of claims 11,861 17,197

　　Other ordinary income 2,618 4,451

(Continued on next page)



063

(Millions of yen)

2013 2014

Ordinary Expenses ¥1,067,614 ¥1,127,904

　Insurance claims and other payments 293,929 327,257

　　Insurance claims 71,060 77,413

　　Annuity payments 9,571 10,768

　　Insurance benefits 46,809 55,510

　　Surrender payments 161,872 178,402

　　Refund to policyholders 2,649 3,203

　　Reinsurance premiums 1,965 1,959

　Provision for policy reserves and others 630,529 650,764

　　Provision for reserve for outstanding claims 607 55

　　Provision for policy reserves 629,909 650,703

　　Interest on policyholders’ dividend reserve 12 5

　Investment expenses 11,686 8,506

　　Interest expenses 43 48

　　Losses on sale of securities 1,587 528

　　Devaluation losses on securities 327 　　Losses on derivatives, net 226 　　Foreign exchange losses, net 1,176 　　Provision for reserve for possible loan losses 21 6

　　Depreciation of real estate for rent and others 2,115 2,077

　　Other investment expenses 6,188 5,845

　Operating expenses 109,060 113,868

　Other ordinary expenses 22,408 27,507

　　Payments of deferred claims 7,078 10,884

　　Taxes 7,929 7,981

　　Depreciation and amortization 4,150 5,064

　　Provision for reserve for employees’ retirement benefits 3,141 3,532

　　Provision for reserve for directors’ retirement benefits 3 　　Others 105 44

Ordinary Profit 74,659 69,205




064

(Millions of yen)

2013 2014

Extraordinary Losses ¥ 8,961 ¥ 9,389

　　Losses on disposal of fixed assets 21 41

　　Impairment losses 962 36

　　Provision for reserve for price fluctuations 6,945 9,291

　　　Provision for reserve for price fluctuations 6,945 9,291

　　Losses on sale of shares of subsidiaries and affiliates 1,031 　　Others 19

Provision for Reserve for Policyholders’ Dividends 2,104 2,232

Income Before Income Taxes 63,594 57,583

Income Taxescurrent 28,774 21,953

Income Taxesdeferred (7,624) (1,433)

Total Income Taxes 21,149 20,519

Net Income ¥42,444 ¥37,063

Statements of Income (Continued)



065

Statements of Changes in Net AssetsSony Life Insurance Co., Ltd.


(Millions of yen)

2013

Shareholders’ Equity

Common

stock

Capital surplus Retained earnings

Total

shareholders’

equity

Capital

reserve

Total

capital

surplus

Earned

reserve

Other

retained

earnings

Total

retained

earnings

Unappropri-

ated retained

earnings

Balance at the beginning of the current

period

¥70,000 ¥5,865 ¥5,865 ¥13,238 ¥143,096 ¥156,335 ¥232,200

Changes during the period

　Dividends from surplus 2,240 (13,440) (11,200) (11,200)

　Net income 42,444 42,444 42,444

　Reversal of land revaluation 118 118 118

　Net changes of items other than 　 shareholders’ equity

Total changes during the period 2,240 29,123 31,363 31,363

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

(Millions of yen)

2013

Valuation and Translation Adjustments

Total

Net Assets

Net unrealized

gains on other

securities,

net of taxes

Land

revaluation,

net of taxes

Total

valuation and

translation

adjustments

Balance at the beginning of the current period ¥34,032 ¥(1,395) ¥32,636 ¥264,836


　Dividends from surplus (11,200)

　Net income 42,444

　Reversal of land revaluation 118

　Net changes of items other than shareholders’ equity 46,251 (118) 46,133 46,133

Total changes during the period 46,251 (118) 46,133 77,496

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




066

(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


period ¥70,000 ¥5,865 ¥5,865 ¥15,478 ¥172,219 ¥187,698 ¥263,563


　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 current period ¥70,000 ¥5,865 ¥5,865 ¥18,138 ¥193,323 ¥211,461 ¥287,327

(Millions of yen)

2014

Valuation and Translation Adjustments

Total Net Assets

Net unrealized gains on other

securities, net of taxes

Land revaluation, net of taxes

Total valuation and

translation adjustments

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


　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 current period ¥83,416 ¥(1,513) ¥81,903 ¥369,230

Statements of Changes in Net Assets (Continued)



067

Statements of Cash FlowsSony Life Insurance Co., Ltd.


(Millions of yen)

2013 2014

Cash flows from operating activities

　Income before income taxes ¥ 63,594 ¥ 57,583　Depreciation of real estate for rent and others 2,115 2,077　Depreciation and amortization 4,150 5,064　Impairment losses 962 36　Increase in reserve for outstanding claims 607 55　Increase in policy reserves 629,909 650,703　Increase in interest of reserve for policyholders’ dividends 12 5　Increase in reserve for policyholders’ dividends 2,104 2,232　Increase in reserve for possible loan losses 21 6　Increase in reserve for employees’ retirement benefits 2,702 2,645　Increase (decrease) in reserve for directors’ retirement benefits 3 (104)　Increase in reserve for price fluctuations 6,945 9,291　Interest income and dividends (108,539) (122,160)　Gains on securities (84,465) (77,861)　Interest expenses 43 48　Foreign exchange (gains) losses 1,176 (1,183)　Losses on disposal of tangible fixed assets 14 40　Increase in due from reinsurers (34) (37)　Decrease in other assets (excluding those related to investing and financing activities) 18,110 18,143　Increase (decrease) in due to agencies 766 (262)　Increase (decrease) in due to reinsurers (33) 20　Increase (decrease) in other liabilities (excluding those related to investing and financing activities) 9,697 (9,774)　Others, net 2,531 (4,722)　Subtotal 552,398 531,845　Interest and dividends received 115,520 129,633　Interest paid (43) (48)　Policyholders’ dividends paid (1,966) (2,273)　Others, net (5,821) (5,392)　Income taxes paid (23,443) (28,837)　Net cash provided by operating activities 636,642 624,926Cash flows from investing activities

　Proceeds from sale of monetary trusts 5,300 5,100　Purchases of securities (666,251) (770,519)　Proceeds from sale and redemption of securities 116,492 113,909　Investments in loans (47,922) (54,102)　Proceeds from collections of loans 21,142 25,405　Others, net (53) 　Total of net cash used in investment transactions (571,293) (680,205)　[Total of net cash provided by (used in) operating activities and investment transactions] [65,349] [(55,279)]　Purchases of tangible fixed assets (481) (682)　Proceeds from sale of tangible fixed assets 2,021　Proceeds from sales of investments in subsidiaries 2,016 　Purchase of securities of a subsidiary (30) 　Purchase of securities of affiliates (3,500)　Others, net (7,282) (3,255)　Net cash used in investing activities (577,071) (685,622)Cash flows from financing activities

　Cash dividends paid (11,200) (13,300)　Others, net (18) (12)　Net cash used in financing activities (11,218) (13,312)Effect of exchange rate changes on cash and cash equivalents (0) 2Net increase (decrease) in cash and cash equivalents 48,352 (74,006)Cash and cash equivalents at the beginning of the fiscal year 76,108 124,461Cash and cash equivalents at the end of the fiscal year ¥ 124,461 ¥ 50,455



068

1 Loans by Borrower Category(Millions of yen)

As of March 31, 2013 2014

Bankrupt and quasi-bankrupt loans ¥ ¥

Doubtful loans

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

Normal loans 147,608 156,815

Total ¥147,608 ¥156,815

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

proceedings and other borrowers in serious fi nancial diffi culties.

2. Doubtful loans are loans to borrowers (other than bankrupt and quasi-bankrupt borrowers) with deteriorated fi nancial 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 fi nancial diffi culties (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, 2013 2014

Insurance claims

　Death benefits ¥ 6,897 ¥ 6,702

　Accidental benefits 209 595

　Disability payments 1,158 1,405

　Maturity benefits 1,402 1,272

　Others 1,299 1,556

　Subtotal 10,966 11,532

Annuity payments 514 163

Insurance benefits 4,982 5,323

Surrender payments 7,969 7,437

Deferred insurance benefits 76 134

Total, including others ¥24,646 ¥24,702



069

3- 02 Policy reserves(Millions of yen)

As of March 31, 2013 2014Policy reserves (excluding contingency reserve)

　Individual life insurance ¥5,207,101 ¥5,840,272　　General accounts 4,707,813 5,257,428　　Separate accounts 499,288 582,844　Individual annuities 149,711 164,451　　General accounts 106,528 115,818　　Separate accounts 43,182 48,632　Group life insurance 52 41　　General accounts 52 41　　Separate accounts 　Group annuities 56,503 55,196　　General accounts 56,503 55,196　　Separate accounts 　Others 　　General accounts 　　Separate accounts 　Subtotal 5,413,369 6,059,962　　General accounts 4,870,898 5,428,484　　Separate accounts 542,471 631,477Contingency reserve 59,561 63,671Total ¥5,472,930 ¥6,123,633　　General accounts ¥4,930,459 ¥5,492,156　　Separate accounts 542,471 631,477

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

As of March 31, 2013 2014Premium reserve ¥5,204,625 ¥5,859,446Unearned premiums 208,743 200,515Refund reserve Contingency reserve 59,561 63,671Total ¥5,472,930 ¥6,123,633

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, 2013 2014Calculation 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.



070

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 32,084 6.00–6.25

FY1986 to FY1990 51,722 6.00–6.25

FY1991 to FY1995 547,386 2.75–6.25

FY1996 to FY2000 1,172,099 1.90–4.00

FY2001 to FY2005 1,344,265 1.50

FY2006 to FY2010 1,387,668 1.50

FY2011 276,060 1.50

FY2012 294,114 1.50

FY2013 267,845 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 fi scal year.

3- 05 Balance, calculating method, and coeffi cient 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, 2013 2014

Balance of policy reserves (general account) ¥30,991 ¥35,270Notes: 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 coeffi cient1. 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. Coefficients used in the calculations are stipulated in Article 5, Paragraph 1-4 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)

2013

For the year ended March 31,Individual life

insurance

Individual

annuities

Group life

insurance

Group

annuities

Asset-formation

insurance,

asset-formation

annuities Others Total

At the beginning of the current fiscal year ¥ 2,179 ¥ 266 ¥1,675 ¥ 1 ¥ ¥ ¥ 4,122

Increase due to interest 11 1 0 12

Decrease due to dividend payment 91 30 1,843 1 1,966

Provision for the current fiscal year (161) 4 2,233 28 2,104

At the end of the current fiscal year 1,938 241 2,064 28 4,273

[1,468] [131] [0] [] [] [] [1,599]

(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 current fiscal year ¥ 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 current fiscal year (27) 14 2,178 67 2,232At the end of the current fiscal year 1,783 226 2,160 67 4,237

[1,412] [131] [0] [] [] [] [1,544]Note: Figures in [ ] are accumulated dividends.



071

3- 07 Other reserves(Millions of yen)

2013 2014

For the years ended March 31,

Balance at

the beginning

of the current

period

Balance at

the end of

the current

period

Increase

(decrease)


period

Balance at the end of the current

periodIncrease

(decrease)

Reserve for possible loan losses

　General reserve for possible loan losses ¥ 0 ¥ 0 ¥ (0) ¥ 0 ¥ 0 ¥ 0

　Specific reserve for possible loan losses 214 235 21 235 242 6

　Reserve for loan losses from borrowers 　 in specific foreign countries

Reserve for employees’ retirement benefits 20,310 22,770 2,459 22,770 25,389 2,619

Reserve for directors’ retirement benefits 168 171 3 171 66 (104)

Reserve for price fluctuations 25,319 32,264 6,945 32,264 41,556 9,291

3- 08 Insurance premiums(Millions of yen)

For the years ended March 31, 2013 2014

Individual life insurance ¥905,514 ¥936,009

　Lump-sum payment 117,473 162,027

　Annual payment 261,534 220,465

　Semi-annual payment 9,485 9,986

　Monthly payment 517,021 543,530

Individual annuities 12,045 16,469

　Lump-sum payment 957 3,504

　Annual payment 3,428 3,990

　Semi-annual payment 190 216

　Monthly payment 7,469 8,757

Group life insurance 4,206 4,523

Group annuities 2,705 2,658

Total, including others ¥924,472 ¥959,660

3- 09 Insurance claims(Millions of yen)

2013 2014

For the years ended March 31, Total

Individual life insurance

Individual annuities


Group annuities



Death benefits ¥42,178 ¥43,716 ¥ ¥1,391 ¥ ¥ ¥ ¥45,108

Accidental benefits 775 674 0 674

Disability payments 2,490 2,539 127 2,666

Maturity benefits 19,593 21,930 21,930

Others 6,021 6,850 183 7,034

Total ¥71,060 ¥75,711 ¥ ¥1,702 ¥ ¥ ¥ ¥77,413

3- 10 Annuity payments(Millions of yen)

2013 2014





Group annuities



Annuity payments ¥9,571 ¥ ¥8,659 ¥11 ¥2,097 ¥ ¥ ¥10,768



072

3- 11 Insurance benefi ts(Millions of yen)

2013 2014





Group annuities



Death benefits ¥ 1,699 ¥ 2,131 ¥ 79 ¥ ¥ ¥ ¥ ¥ 2,210

Hospitalization benefits 8,745 8,992 0 8,992

Surgery benefits 8,258 8,604 8,604

Disability benefits 80 169 0 169

Living benefits 15,775 23,070 23,070

Others 12,250 9,806 454 2,201 12,462

Total ¥46,809 ¥52,774 ¥533 ¥ 0 ¥2,201 ¥ ¥ ¥55,510

3- 12 Surrender payments(Millions of yen)

2013 2014





Group annuities



Surrender payments ¥161,872 ¥170,178 ¥8,223 ¥ ¥ ¥ ¥ ¥178,402

3- 13 Depreciation and amortization(Millions of yen)

2013 2014

For the years ended March 31,Acquisition

cost

Depreciation

expenses

Accumulated

depreciation

Balance

at the end

of the current

period

Ratio of

depreciation

(%)

Acquisition cost

Depreciation expenses

Accumulated depreciation

Balance at the end

of the current period

Ratio of depreciation

(%)

Tangible fixed assets ¥ 4,637 ¥ 235 ¥ 2,304 ¥ 2,333 49.7% ¥ 4,807 ¥ 262 ¥ 2,446 ¥ 2,361 50.9%

　Buildings 3,442 163 1,399 2,043 40.7 3,528 176 1,490 2,037 42.3

　Leased assets 20 0 0 19 1.7

　Other tangible fixed assets 1,194 72 905 289 75.7 1,259 86 955 304 75.8

Intangible fixed assets 37,262 3,911 11,169 26,092 30.0 38,095 4,799 14,235 23,859 37.4

Others 15 3 8 6 55.6 11 2 6 5 52.6

Total ¥41,915 ¥4,150 ¥13,482 ¥28,432 32.2% ¥42,915 ¥5,064 ¥16,688 ¥26,226 38.9%

3- 14 Operating expenses(Millions of yen)


Sales and marketing expenses ¥ 53,837 ¥ 56,713

Sales administrative expenses 14,181 14,887

General administrative expenses 41,041 42,267

Total ¥109,060 ¥113,868

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 ¥840 ¥846



073

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


Core profit (A) ¥80,045 ¥72,365

　Capital gains 2,420 2,130

　　Income from monetary trusts, net 　　Income from trading securities, net 　　Gains on sale of securities 2,420 773

　　Gains on derivatives, net 172

　　Foreign exchange gains, net 1,183

　　Other capital gains 　Capital losses 3,351 949

　　Losses on monetary trusts, net 　　Losses on trading securities, net 　　Losses on sale of securities 1,587 528

　　Devaluation losses on securities 327 　　Losses on derivatives, net 226 　　Foreign exchange losses, net 1,176 　　Other capital losses 34 420

　Net capital gains (losses) (B) (931) 1,180

Core profit plus net capital gains (losses) (A) + (B) 79,114 73,545

　Other one-time gains 　　Gains from reinsurance 　　Reversal of contingency reserve 　　Reversal of specific reserve for possible loan losses 　　Others 　Other one-time losses 4,454 4,340

　　Losses from reinsurance 　　Provision for contingency reserve 4,223 4,110

　　Provision for specific reserve for possible loan losses 21 6

　　Provision for reserve for loan losses from borrowers in specific foreign countries 　　Write-off of loans 　　Others 209 223

　Net other one-time gains (losses) (C) (4,454) (4,340)

Ordinary profit (A) + (B) + (C) ¥74,659 ¥69,205Notes: 1. Core profi t for the fi scal year ended March 31, 2013 (A) includes income gains of ¥5,259 million in income from monetary trusts; other capital losses

include impairment losses of ¥34 million from investment partnership; “Others” of other one-time losses includes provision of additional policy reserve

of ¥209 million.

2. Core profi t for the fi scal year ended March 31, 2014 (A) includes income gains of ¥5,311 million in income from monetary trusts; other capital losses

include the total amount of provision for policy reserve and others of ¥227 million, subject to foreign exchange fl uctuations for foreign currency-

denominated products, and impairment losses of ¥193 million from investment partnerships; “Others” of other one-time losses includes provision

for additional policy reserve of ¥223 million.



074

(Reference) Reconciliation to core profi t(Millions of yen)


Core Revenues ¥1,139,854 ¥1,194,979

　Income from insurance premiums 925,874 960,986

　　Insurance premiums 924,472 959,660

　　Ceded reinsurance commissions 1,402 1,325

　Investment income 192,154 204,881

　　Interest income and dividends 108,539 122,160

　　Gain on redemption of securities 2

　　Reversal of general reserve for possible loan losses 0 　　Other investment income 13 47

　　Gains on separate accounts, net 83,601 82,670

　Other ordinary income 16,566 23,799

　　Income for annuity riders 2,087 2,151

　　Income for deferred payment of claims 11,861 17,197

　　Other ordinary income 2,618 4,451

　Other core revenues 5,259 5,311

Core Expenses 1,059,808 1,122,613

　Insurance claims and other payments 293,929 327,257

　　Insurance claims 71,060 77,413

　　Annuity payments 9,571 10,768

　　Insurance benefits 46,809 55,510

　　Surrender payments 161,872 178,402

　　Refund to policyholders 2,649 3,203

　　Reinsurance premiums 1,965 1,959

　Provision for policy reserves and others 626,096 646,203

　Investment expenses 8,313 7,777

　　Interest expenses 43 48

　　Provision for general reserve for possible loan losses 0

　　Depreciation of real estate for rent and others 2,115 2,077

　　Other investment expenses 6,153 5,652

　Operating expenses 109,060 113,868

　Other ordinary expenses 22,408 27,507

　　Payments of deferred claims 7,078 10,884

　　Taxes 7,929 7,981

　　Depreciation and amortization 4,150 5,064

　　Provision for reserve for employees’ retirement benefits 3,141 3,532

　　Provision for reserve for directors’ retirement benefits 3 　　Others 105 44

　Other core expenses

Core Profit ¥ 80,045 ¥ 72,365

(Reference) Positive spread and yields(Billions of yen)


Positive spread ¥2.1 ¥8.4

　Investment yield for core profit 2.31% 2.35%

　Investment yield (general account) 2.12% 2.20%

　Average assumed interest rate 2.27% 2.18%



075

5 Fair Value Information on Securities (General Account)

5- 01 Fair value information on securitiesValuation gains (losses) on trading-purpose securitiesNot applicable

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

(Millions of yen)

2013

As of March 31,Carrying

amount Fair value

Net unrealized

gains (losses)

Unrealized

gains

Unrealized

losses

Held-to-maturity securities ¥3,874,232 ¥4,425,970 ¥551,737 ¥551,737 ¥

Policy reserve matching bonds

Stocks of subsidiaries and affiliated companies

Available-for-sale securities 955,999 1,079,296 123,296 123,344 47

　Japanese government and corporate bonds 925,308 1,036,956 111,648 111,648 　Japanese stocks 14,760 20,994 6,233 6,281 47

　Foreign securities 14,454 18,681 4,226 4,226 　　Bonds 14,454 18,681 4,226 4,226 　　Stocks, etc. 　Other securities 1,476 2,664 1,188 1,188 　Monetary claims purchased 　Certificates of deposit 　Others

Total ¥4,830,232 ¥5,505,267 ¥675,034 ¥675,082 ¥47

Japanese government and corporate bonds ¥4,756,200 ¥5,410,686 ¥654,486 ¥654,486 ¥

Japanese stocks 14,760 20,994 6,233 6,281 47

Foreign securities 57,795 70,922 13,126 13,126 　Bonds 57,795 70,922 13,126 13,126 　Stocks, etc.

Other securities 1,476 2,664 1,188 1,188

Monetary claims purchased

Certificates of deposit

Others



076

(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


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


Certificates of deposit

Others Notes: 1. The above table includes assets which are permitted to be treated as equivalent to securities defi ned in the Financial Instruments and Exchange Act

of Japan.

2. The above table includes monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as of

March 31, 2014 amounted to ¥268,668 million and ¥37,253 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, 2013 2014

Held-to-maturity securities ¥ ¥ 　Unlisted foreign bonds 　Others


Stocks of subsidiaries and affiliated companies 12,607 16,000

Available-for-sale securities 20,372 17,289

　Unlisted domestic stocks (except OTC stocks) 4 　Unlisted foreign stocks (except OTC stocks) 948 823

　Unlisted foreign bonds 　Others 19,419 16,466

Total ¥32,980 ¥33,289



077

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)

2013


amount Fair value

Net unrealized

gains (losses)

Unrealized

gains

Unrealized

losses

Held-to-maturity securities ¥3,874,232 ¥4,425,970 ¥551,737 ¥551,737 ¥ Policy reserve matching bonds Stocks of subsidiaries and affiliated companies 12,607 12,607 Available-for-sale securities 976,372 1,103,708 127,335 128,555 1,219


　Foreign securities 15,403 20,083 4,679 4,679 　　Bonds 14,454 18,681 4,226 4,226 　　Stocks, etc. 948 1,401 452 452 　Other securities 20,895 25,669 4,774 5,946 1,171

　Monetary claims purchased 　Certificates of deposit 　Others Total ¥4,863,212 ¥5,542,285 ¥679,073 ¥680,292 ¥1,219

Japanese government and corporate bonds ¥4,756,200 ¥5,410,686 ¥654,486 ¥654,486 ¥ Japanese stocks 24,872 31,106 6,233 6,281 47

Foreign securities 61,244 74,823 13,578 13,578 　Bonds 57,795 70,922 13,126 13,126 　Stocks, etc. 3,448 3,901 452 452 Other securities 20,895 25,669 4,774 5,946 1,171

Monetary claims purchased Certificates of deposit Others

(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



078

5- 02 Fair value information on monetary trusts (general account)(Millions of yen)

2013

As of March 31,Balance sheet

amount Fair value

Net unrealized

gains (losses) Unrealized gains Unrealized losses

Monetary trusts ¥306,122 ¥306,122 ¥ ¥ ¥

(Millions of yen)

2014


amount Fair valueNet unrealized gains (losses) Unrealized gains Unrealized losses

Monetary trusts ¥305,346 ¥305,346 ¥ ¥ ¥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)

2013

As of March 31, Carrying amount Fair value

Net unrealized

gains (losses) Unrealized gains Unrealized losses

Monetary trusts for held-to-maturity ¥ ¥ ¥ ¥ ¥Monetary trusts for policy reserve matching Other monetary trusts 267,865 306,071 38,206 38,206

(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

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)

Qualitative Information1. Transaction details: The main derivative transactions used by Sony Life are as follows: Currency derivatives: Forward foreign exchange transactions2. Transaction policy: Sony Life’s policy is to conduct derivative transactions for the purpose of reducing the risk associated with the held

assets and liabilities. Sony Life does not engage in speculative derivatives trading.3. Purpose of use: Sony Life uses derivatives for the purpose of reducing the risk associated with the held assets and liabilities. Sony Life

does not apply hedge accounting to derivatives.4. Risk details: The derivative transactions used by Sony Life are subject to the risk of fluctuations in market prices. However, given that

Sony Life uses derivatives mainly to reduce the risk associated with the held assets and liabilities, the sum of the risk associated with derivative transactions and the underlying risk of assets and liabilities is limited.

The act of trading in derivatives is intrinsically subject to credit risk. However, Sony Life selects counterparties who are highly unlikely to default on agreements related to these transactions.

5. 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.

6. Supplemental information regarding quantitative information: Forward foreign exchange transactions are undertaken for the purpose of reducing the risk of foreign exchange movements associated with foreign currency-denominated receivables and payables, etc. The underlying assets held and gains and losses on derivatives are recognized on a cumulative basis. Sony Life has confirmed that derivative transactions have the effect of offsetting foreign exchange movements to a certain extent.



079

Quantitative Information1. 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)

2013 2014

As of March 31,

Interest rate

derivativesCurrency

derivativesEquity

derivativesBond

derivatives Others Total

Interest rate

derivativesCurrency

derivativesEquity

derivativesBond


Derivatives to which hedge accounting is applied ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥Derivatives to which hedge accounting is not applied (172) (172) Total ¥ ¥(172) ¥ ¥ ¥ ¥(172) ¥ ¥ ¥ ¥ ¥ ¥

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

Not applicable

3. Currency derivatives(Millions of yen)

2013 2014

As of March 31,

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

total Fair value

Valuationgains

(losses)

Notionalamount

over 1 year

Notionalamount

over 1 year

Over-the-counter transactions

　Forward foreign exchanges

　　Sold ¥1,206 ¥ ¥(172) ¥(172) ¥ ¥ ¥ ¥　　　U.S. dollars 1,206 (172) (172) Total ¥(172) ¥

Note: The forward rate of exchange is used to value forward foreign exchange transactions at the end of the fi scal year.

4. Equity derivatives

Not applicable

5. Bond derivatives

Not applicable

6. Others

Not applicable

<Reference> Holdings of securitized papers and other sub-prime related investments(Billions of yen)

2013 2014

As of March 31, Fair Value

Unrealizedgains

(losses)

Realizedgains

(losses) Fair Value

Unrealizedgains

(losses)

Realizedgains

(losses)As of March

31, 2012As of March

31, 2013

SPEs ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥CDO Other sub-prime or Alt-A exposure CMBSs Leveraged finance RMBS Credit link note/loan

Notes: Other than the investments in the above table, Sony Life held:

1. As of March 31, 2013, principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair value of ¥52.2 billion and unrealized gain of ¥8.8

billion as of March 31, 2013).

2. As of March 31, 2014, principal protected 30-year notes with NIKKEI 225 index-linked coupons (fair value of ¥56.0 billion and unrealized gain of ¥12.2

billion as of March 31, 2014).

6 Fair Value Information on Securities (Company Total)

6- 01 Fair value information on securitiesValuation gains (losses) on trading-purpose securities

(Millions of yen)

2013 2014

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 ¥527,787 ¥70,801 ¥620,666 ¥50,776Note: The above chart includes trading-purpose securities included in “monetary trusts,” etc.



080

Fair value information on securities

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

2013


amount Fair value

Net unrealized

gains (losses)

Unrealized

gains

Unrealized

losses

Held-to-maturity securities ¥3,874,232 ¥4,425,970 ¥551,737 ¥551,737 ¥Policy reserve matching bonds Stocks of subsidiaries and affiliated companies Available-for-sale securities 955,999 1,079,296 123,296 123,344 47


　Foreign securities 14,454 18,681 4,226 4,226 　　Bonds 14,454 18,681 4,226 4,226 　　Stocks, etc. 　Other securities 1,476 2,664 1,188 1,188 　Monetary claims purchased 　Certificates of deposit 　Others Total ¥4,830,232 ¥5,505,267 ¥675,034 ¥675,082 ¥47

Japanese government and corporate bonds ¥4,756,200 ¥5,410,686 ¥654,486 ¥654,486 ¥Japanese stocks 14,760 20,994 6,233 6,281 47

Foreign securities 57,795 70,922 13,126 13,126 　Bonds 57,795 70,922 13,126 13,126 　Stocks, etc. Other securities 1,476 2,664 1,188 1,188 Monetary claims purchased Certificates of deposit Others

(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

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. The above table includes monetary trusts other than trading-purpose securities, and their carrying amount and net unrealized gains (losses) as of

March 31, 2014 amounted to ¥268,668 million and ¥37,253 million, respectively.

3. Carrying amount represents the amount after deductions for depreciable costs and impairment losses, before mark-to-market.



081

O Held-to-maturity securities

(Millions of yen)

2013 2014


amount Fair value Difference

Balance sheetamount Fair value Difference

Held-to-maturity securities whose fair value

exceeds balance sheet amount ¥3,874,232 ¥4,425,970 ¥551,737 ¥4,404,321 ¥4,834,716 ¥430,394　Japanese government and corporate bonds 3,830,891 4,373,729 542,837 4,349,230 4,766,691 417,460　Foreign securities 43,341 52,240 8,899 55,090 68,024 12,933　Other securities Held-to-maturity securities whose fair value

does not exceed balance sheet amount 5,341 5,267 (73)　Japanese government and corporate bonds 　Foreign securities 5,341 5,267 (73)　Other securities

O Policy reserve matching bondsNot applicable

O Available-for-sale securities(Millions of yen)

2013 2014


amount

Balance sheet

amount Difference

Carryingamount

Balance sheetamount Difference

Available-for-sale securities whose

balance sheet amount exceeds

carrying amount ¥952,101 ¥1,075,445 ¥123,344 ¥1,017,996 ¥1,142,416 ¥124,420　Japanese government and corporate bonds 925,308 1,036,956 111,648 989,552 1,100,419 110,866　Japanese stocks 10,862 17,143 6,281 12,041 21,013 8,972　Foreign securities 14,454 18,681 4,226 14,928 18,450 3,521　Other securities 1,476 2,664 1,188 1,474 2,533 1,059　Monetary claims purchased 　Certificates of deposit 　Others Available-for-sale securities whose

balance sheet amount does not exceed

carrying amount 3,898 3,850 (47) 47,518 47,482 (35)　Japanese government and corporate bonds 46,360 46,338 (22)　Japanese stocks 3,898 3,850 (47) 195 191 (3)　Foreign securities 962 952 (10)　Other securities 　Monetary claims purchased 　Certificates of deposit 　Others

b. Carrying amounts of securities without market value

(Millions of yen)

As of March 31, 2013 2014

Held-to-maturity securities ¥ ¥ 　Unlisted foreign bonds 　Others Policy reserve matching bonds Stocks of subsidiaries and affiliated companies 12,607 16,000Available-for-sale securities 20,372 17,289　Unlisted domestic stocks (except OTC stocks) 4 　Unlisted foreign stocks (except OTC stocks) 948 823　Unlisted foreign bonds 　Others 19,419 16,466Total ¥32,980 ¥33,289



082

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)

2013


amount Fair value

Net unrealized

gains (losses)Unrealized

gains

Unrealized

losses

Held-to-maturity securities ¥3,874,232 ¥4,425,970 ¥551,737 ¥551,737 ¥ Policy reserve matching bonds Stocks of subsidiaries and affiliated companies 12,607 12,607 Available-for-sale securities 976,372 1,103,708 127,335 128,555 1,219


　Foreign securities 15,403 20,083 4,679 4,679 　　Bonds 14,454 18,681 4,226 4,226 　　Stocks, etc. 948 1,401 452 452 　Other securities 20,895 25,669 4,774 5,946 1,171

　Monetary claims purchased 　Certificates of deposit 　Others Total ¥4,863,212 ¥5,542,285 ¥679,073 ¥680,292 ¥1,219

Japanese government and corporate bonds ¥4,756,200 ¥5,410,686 ¥654,486 ¥654,486 ¥ Japanese stocks 24,872 31,106 6,233 6,281 47

Foreign securities 61,244 74,823 13,578 13,578 　Bonds 57,795 70,922 13,126 13,126 　Stocks, etc. 3,448 3,901 452 452 Other securities 20,895 25,669 4,774 5,946 1,171

Monetary claims purchased Certificates of deposit Others

(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



083

6- 02 Fair value information on monetary trusts (company total)(Millions of yen)

2013 2014

As of March 31,Balance

sheet amount Fair value

Net

unrealized

gains (losses)

Balance sheet amount Fair value

Net unrealized


gains

Unrealized

losses

Unrealized gains

Unrealized losses

Monetary trusts ¥306,122 ¥306,122 ¥ ¥ ¥ ¥305,346 ¥305,346 ¥ ¥ ¥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)

2013 2014


amount Fair value

Net

unrealized

gains (losses)

Carrying amount Fair value

Net unrealized


gains

Unrealized

losses

Unrealized gains

Unrealized losses

Monetary trusts for

held-to-maturity ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥

Monetary trusts

for policy reserve

matching

Other monetary

trusts 267,865 306,071 38,206 38,206 268,042 305,296 37,253 37,253

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:

Currency derivatives: Forward foreign exchange transactions

2. Transaction policy: Sony Life’s policy is to conduct derivative transactions for the purpose of reducing the risk associated with the held

assets and liabilities. Sony Life does not engage in speculative derivatives trading.

3. Purpose of use: Sony Life uses derivatives for the purpose of reducing the risk associated with the held assets and liabilities. Sony Life

does not apply hedge accounting to derivatives.

4. Risk details: The derivative transactions used by Sony Life are subject to the risk of fluctuations in market prices. However, given that

Sony Life uses derivatives mainly to reduce the risk associated with the held assets and liabilities, the sum of the risk associated with

derivative transactions and the underlying risk of assets and liabilities is limited.

The act of trading in derivatives is intrinsically subject to credit risk. However, Sony Life selects counterparties who are highly unlikely to

default on agreements related to these transactions.

5. Risk management systems: Sony Life’s balance of derivative transactions is within the limits that Sony Life has set in-house. On transac-

tions conducted by the division in charge of investment, the administrative division receives reports directly from the transaction counter-

party. 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 depart-

ment 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.

6. Supplemental information regarding quantitative information: Forward foreign exchange transactions are undertaken for the purpose of

reducing the risk of foreign exchange movements associated with foreign currency-denominated receivables and payables, etc. The

underlying assets held and gains and losses on derivatives are recognized on a cumulative basis. Sony Life has confirmed that derivative

transactions have the effect of offsetting foreign exchange movements to a certain extent.



084

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)

2013 2014

As of March 31,

Interest

rate

derivatives

Currency

derivatives

Equity

derivatives

Bond


Interestrate

derivativesCurrency

derivativesEquity

derivativesBond


Derivatives to which

hedge accounting

is applied

¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥

Derivatives to which

hedge accounting

is not applied

(172) (172)

Total ¥ ¥(172) ¥ ¥ ¥ ¥(172) ¥ ¥ ¥ ¥ ¥ ¥

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

Not applicable

Currency derivatives(Millions of yen)

2013 2014

As of March 31,

Notional

amount

total Fair value

Valuation

gains

(losses)

Notionalamount

total Fair value

Valuationgains

(losses)

Notional

amount

over 1 year

Notionalamount

over 1 year

Over-the-counter transactions

　Forward foreign exchanges

　　Sold ¥1,206 ¥ ¥(172) ¥(172) ¥ ¥ ¥ ¥　　　U.S. dollars 1,206 (172) (172)

Total ¥(172) ¥

Note: The forward rate of exchange is used to value forward foreign exchange transactions at the end of the fiscal year.

Equity derivatives

Not applicable

Bond derivatives

Not applicable

Others

Not 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

Others

Not applicable

Sony Life

Performance Indicators (Non-consolidated)


085

1 Key Performance Indicators for Past Five Years(Millions of yen)

For the years ended March 31, 2010 2011 2012 2013 2014

Policy amount in force ¥34,598,244 ¥35,947,326 ¥37,345,780 ¥39,124,675 ¥40,500,241

　Individual life insurance 33,164,100 34,421,831 35,707,301 37,366,333 38,628,089

　Individual annuities 306,661 326,699 369,759 412,709 466,915

　Group life insurance 1,127,481 1,198,794 1,268,718 1,345,632 1,405,237

Policy amount in force for group annuities 72,348 58,937 57,811 56,503 55,196

Annualized premiums from insurance in force 573,331 604,793 635,401 669,937 696,986

　Of which, medical protection, living benefit 　 protection and other products

133,023 140,776 148,954 158,686 167,075

New policy amount 4,056,495 4,213,996 4,207,045 4,460,210 3,894,484

　Individual life insurance 4,017,527 4,166,278 4,145,663 4,396,676 3,814,291

　Individual annuities 31,709 32,746 57,664 57,931 75,088

　Group life insurance 7,258 14,971 3,717 5,602 5,104

Annualized premiums from new policies 68,780 71,230 70,854 73,263 63,992

　Of which, medical protection, living benefit 　 protection and other products

16,264 16,679 17,101 18,397 13,486

Ordinary revenues 881,798 900,091 967,400 1,142,274 1,197,109

　Of which, income from insurance 　 premiums

700,101 770,330 816,106 925,874 960,986

　Of which, investment income 175,397 119,500 133,945 199,833 212,323

Ordinary expenses 801,698 826,914 897,964 1,067,614 1,127,904

　Of which, insurance claims and 　 other payments

274,278 297,966 287,431 293,929 327,257

　Of which, investment expenses 20,584 19,303 14,370 11,686 8,506

　Of which, operating expenses 96,860 99,374 105,492 109,060 113,868

Ordinary profit 80,099 73,176 69,436 74,659 69,205

Net income 46,138 40,220 31,426 42,444 37,063

Core profit 64,517 56,295 71,685 80,045 72,365

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 4,286,540 4,723,332 5,222,846 5,952,750 6,624,903

　Of which, separate account assets 373,604 398,124 444,289 550,624 640,562

Policy reserves 3,985,610 4,371,484 4,843,020 5,472,930 6,123,633

Loans 127,599 134,419 138,909 145,104 154,219

Securities 3,539,114 4,017,583 4,545,019 5,211,535 5,954,716

Solvency margin ratio 2,637.3% 2,900.1%

[1,720.0%]

1,980.4% 2,281.8% 2,358.7%

Number of employees 5,835 5,921 6,060 6,323 6,553Notes: 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 coeffi cient corresponding to the premium payment method. (For lump-sum payment policies, premiums are divided by the

number of coverage years.)

5. “Medical protection, living benefi t protection and other products” is the portion of the annualized premium for medical protection benefi ts (hospitalization

benefi ts, surgical benefi ts, etc.) and living benefi t protection (benefi ts for specifi c diseases, nursing care benefi ts, etc.).

6. Cabinet Offi ce 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 fi gures for the years ended March 31, 2010 and 2011 and the fi gures for the years ended March 31, 2012 to 2014 are calculated based

on different methods. The above-stated fi gure 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 fi gure is also included in disclosures for the fi scal year ended March 31, 2011.

Sony Life Performance Indicators (Non-consolidated)


086

2 Key Performance Indicators

2- 01 Policy amount in force and new policy amountPolicy amount in force

(Millions of yen)

2013 2014

As of March 31, Number

Change from

March 31,

2012 (%) Amount

Change from

March 31,

2012 (%) Number

Change fromMarch 31,2013 (%) Amount

Change fromMarch 31,2013 (%)

Individual life insurance 5,958,963 106.4% ¥37,366,333 104.6% 6,236,000 104.6% ¥38,628,089 103.4%Individual annuities 82,261 115.0 412,709 111.6 94,413 114.8 466,915 113.1Group life insurance 1,345,632 106.1 1,405,237 104.4Group annuities 56,503 97.7 55,196 97.7

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)

2013

For the year ended March 31, Number Amount

YoY

change

(%)

YoY

change

(%)

Amount,

of which,

new policies

Amount,

of which,

increase from

conversion

Individual life insurance 607,184 105.1% ¥4,396,676 106.1% ¥4,396,676 ¥Individual annuities 13,343 98.5 57,931 100.5 57,931 Group life insurance 5,602 150.7 5,602 Group annuities

(Millions of yen)

2014

For the year ended March 31, Number Amount

YoYchange

(%)

YoYchange

(%)

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

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

(Millions of yen)

2013 2014

As of March 31, Amount

Change from

March 31, 2012 (%) AmountChange from

March 31, 2013 (%)Individual life insurance ¥654,723 105.3% ¥680,005 103.9%Individual annuities 15,214 110.6 16,980 111.6Total ¥669,937 105.4% ¥696,986 104.0%　Of which, medical protection, living benefit 　 protection and other products 158,686 106.5 167,075 105.3

New policies(Millions of yen)

2013 2014For the years ended March 31, Amount YoY change (%) Amount YoY change (%)Individual life insurance ¥71,069 103.5% ¥61,269 86.2%Individual annuities 2,193 99.6 2,723 124.1Total ¥73,263 103.4% ¥63,992 87.3%　Of which, medical protection, living benefit 　 protection and other products 18,397 107.6 13,486 73.3

Notes: 1. Annualized premiums refer to an amount that is calculated by multiplying individual premium amounts by a coeffi cient that differs depending on the premium payment methods, thereby converting the fi gure to a per-year premium. (For lump-sum payment policies, premiums are divided by the number of coverage years.)

2. “Medical protection, living benefi t protection and other products” indicates the portion of annualized premiums for medical protection benefi ts (hospital-ization benefi ts, surgical procedure benefi ts, etc.) and products with living benefi t protection (benefi ts for specifi c illness, nursing care benefi ts, etc.).



087

2- 03 Policy amount in force and new policy amount by productPolicies and policy amount in force by product

(Millions of yen)

2013 2014As of March 31, Number Amount Number AmountIndividual life insurance products

Pure death-protection insurance 4,569,665 ¥34,556,341 4,743,523 ¥35,556,338Variable life insurance (whole life type) 577,454 3,039,828 610,296 3,188,877U.S. dollar-denominated whole life insurance 18,494 165,529Modified payment whole life insurance 15,557 147,918 15,090 140,607Limited payment whole life insurance 326,084 2,714,103 332,430 2,711,866Family insurance 1,274 11,823 1,245 11,522Interest rate-sensitive whole life insurance 561,924 3,189,482 564,387 3,179,370Whole life insurance (no selection type) 4,537 8,221 4,317 7,738Living benefit insurance (whole life type) 453,085 1,542,262 511,682 1,763,371Variable life insurance (term type) 1,398 45,078 1,352 44,305Family income insurance 203,903 5,376,396 221,528 5,764,089Living standard insurance 3,599 57,892 3,293 49,569Level premium plan term life insurance 90,312 1,881,168 86,423 1,783,849Decreasing term life insurance 66,044 1,246,725 68,650 1,297,123Living benefit insurance (term type) 48,994 435,942 58,577 534,460Level premium plan term life insurance (non-smoker preferred risk) 19,175 782,864 18,558 755,669Decreasing term life insurance (non-smoker preferred risk) 27,929 657,075 26,182 578,534Family income insurance (non-smoker preferred risk) 53,979 1,629,338 51,431 1,477,624Increasing term life insurance 106 8,159 71 6,110Long-term level premium plan term life insurance (with disability benefit) 29,897 1,328,486 35,922 1,619,192Increasing term life insurance (reduced surrender value) 3,614 124,883 3,349 116,349Level premium plan term life insurance (no surrender value) 38,192 698,601 42,747 789,873Income protection insurance to cover three major diseases 14,538 10,914 17,294 13,261Semi-participating whole life nursing-care insurance 121,882 461,963 130,595 492,393Whole life nursing-care insurance (reduced surrender value) 8,758 1,625 12,528 2,441Cancer insurance 219,666 30,277 214,595 29,251Whole-life cancer insurance (08) 56,009 5,264 61,918 5,713Cancer hospitalization insurance 33,387 31,867 Comprehensive medical insurance 1,575,595 694,977 1,586,695 675,752Long-term comprehensive medical insurance 12,708 5,301 11,946 5,025Semi-participating living standard insurance (joint type) 65 1,329 61 1,221Term riders and others [514,361] 8,418,435 [522,914] 8,345,638

Mixed insurance 316,092 1,115,467 378,275 1,315,664Variable life insurance (limited term type) 43,327 122,828 47,944 137,093U.S. dollar-denominated endowment insurance 1,842 8,058U.S. dollar-denominated specialty endowment insurance 2,242 9,485Endowment insurance 202,663 809,770 258,380 983,264Semi-participating endowment insurance 70,102 182,868 67,867 177,764

Pure endowment insurance 1,073,206 1,694,524 1,114,202 1,756,085Educational endowment insurance 13,317 15,680Semi-participating educational endowment insurance 1,073,206 1,694,524 1,100,885 1,740,405Living benefit rider [] []

Total individual life insurance products 5,958,963 37,366,333 6,236,000 38,628,089Individual annuity products

Semi-participating individual annuities 47,259 210,974 55,941 247,101Individual variable annuities 27,566 146,358 30,281 160,834Others 7,436 55,375 8,191 58,979Total individual annuity products 82,261 412,709 94,413 466,915

Group life insurance productsGroup term life insurance 119,023 240,853 95,087 233,526Group welfare term life insurance 127,330 74,381 134,103 75,088Group credit life insurance 1,881,666 1,030,367 1,729,468 1,096,603Annuity payment rider 57 29 45 18Total group life insurance products 2,128,076 1,345,632 1,958,703 1,405,237

Group annuity productsNew-type corporate annuities 25,944 4,071 25,437 3,872Defined contribution corporate annuities 165,990 52,431 159,268 51,324Total group annuity products 191,934 56,503 184,705 55,196

Medical protection insurance (group-type) Reinsurance recipients

Notes: 1. “Term riders and others” includes, in addition to “term riders,” “living benefi t whole life policy riders” and “semi-participating lump sum nursing-care riders every fi ve years.”

2. The total number of policies in force for “term riders and others” and “living benefi t 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 fi xed 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” refl ect 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 benefi ts for hospitalization.



088

New policies and new policy amount by product(Millions of yen)

2013 2014For the years ended March 31, Number Amount Number AmountIndividual life insurance products

Pure death-protection insurance 471,677 ¥4,118,758 369,707 ¥3,424,239Variable life insurance (whole life type) 42,542 175,568 48,549 213,026U.S. dollar-denominated whole life insurance 18,725 164,923Modified payment whole life insurance 85 1,580 1 10Limited payment whole life insurance 4 22 13,610 70,372Family insurance Interest rate-sensitive whole life insurance 71,004 420,177 21,388 121,846Whole life insurance (no selection type) 351 484 314 463Living benefit insurance (whole life type) 97,266 382,026 71,722 273,274Variable life insurance (term type) 72 2,266 28 1,547Family income insurance 34,840 1,065,331 28,617 868,575Living standard insurance Level premium plan term life insurance 4,020 97,588 4,107 89,827Decreasing term life insurance 9,275 233,433 7,430 190,682Living benefit insurance (term type) 12,238 125,213 13,035 129,636Level premium plan term life insurance (non-smoker preferred risk) 995 55,416 919 46,356Decreasing 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) 6,758 301,579 7,982 373,702Increasing term life insurance (reduced surrender value) 582 19,985 231 6,658Level premium plan term life insurance (no surrender value) 8,245 151,982 7,520 147,705Income protection insurance to cover three major diseases 3,928 3,164 3,786 3,067Semi-participating whole life nursing-care insurance 42,509 157,066 12,916 48,199Whole life nursing-care insurance (reduced surrender value) 3,642 698 4,369 928Cancer insurance 3,241 274 3,775 365Whole-life cancer insurance (08) 11,505 962 8,729 761Cancer hospitalization insurance 2,250 2,071 Comprehensive medical insurance 116,325 27,937 89,883 19,756Long-term comprehensive medical insurance Semi-participating living standard insurance (joint type) Term riders and others [56,941] 895,997 [36,234] 652,550

Mixed insurance 33,819 114,312 91,693 304,877Variable life insurance (limited term type) 2,993 8,424 8,095 23,461U.S. dollar-denominated endowment insurance 1,870 7,954U.S. dollar-denominated specialty endowment insurance 2,272 9,417Endowment insurance 18,516 78,964 76,511 254,597Semi-participating endowment insurance 12,310 26,923 2,945 9,446

Pure endowment insurance 101,688 163,604 56,546 85,174Educational endowment insurance 13,326 15,693Semi-participating educational endowment insurance 101,688 163,604 43,220 69,481Living benefit rider [] []

Total individual life insurance products 607,184 4,396,676 517,946 3,814,291Individual annuity products

Semi-participating individual annuities 11,816 49,516 10,486 45,780Individual variable annuities 1,527 8,414 5,233 29,308Others Total individual annuity products 13,343 57,931 15,719 75,088

Group life insurance products

Group term life insurance 9,903 1,796 828 6Group welfare term life insurance 2,822 3,805 14,997 5,098Group credit life insurance Annuity payment rider Total group life insurance products 12,725 5,602 15,825 5,104

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 benefi t whole life policy riders” and “semi-participating lump sum nursing-care

riders every fi ve years.”

2. The total number of policies in force for “term riders and others” and “living benefi t 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” refl ect 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 benefi ts for hospitalization.



089

2- 04 Policy amount in force by insurance function(Millions of yen)

As of March 31, 2013 2014Death protection

Ordinary death

Individual life insurance ¥35,671,808 ¥36,872,003Individual annuities [97,350] [108,424]Group life insurance 1,345,602 1,405,218Group annuities Total 37,017,411 38,277,222

Accidental death

Individual life insurance [7,054,856] [6,815,689]Individual annuities Group life insurance [1,779] [730]Group annuities Total [7,056,635] [6,816,420]

Death protection with other conditions

Individual life insurance [1,413,006] [1,345,860]Individual annuities Group life insurance Group annuities Total [1,413,006] [1,345,860]

Living protection

Maturity and living benefits

Individual life insurance 1,694,524 1,756,085Individual annuities 357,730 408,466Group life insurance Group annuities Total 2,052,255 2,164,552

Annuities

Individual life insurance Individual annuities [49,550] [55,275]Group life insurance [9] [7]Group annuities Total [49,559] [55,282]

Others

Individual life insurance Individual annuities 54,978 58,448Group life insurance 29 18Group annuities 56,503 55,196Total 111,511 113,664

Hospitalization protection

Accidental hospitalization

Individual life insurance [18,031] [18,095]Individual annuities Group life insurance [15] [12]Group annuities Total [18,047] [18,108]

Sickness hospitalization

Individual life insurance [18,031] [18,095]Individual annuities Group life insurance Group annuities Total [18,031] [18,095]

Hospitalization with other conditions

Individual life insurance [7,611] [7,419]Individual annuities Group life insurance Group annuities Total [7,611] [7,419]

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 benefi ts 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 benefi ts 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, fi gures for additional coverage are shown in [ ].



090

2- 05 Number of policies in force by insurance function(Number)

As of March 31, 2013 2014

Disability protection

　Individual life insurance 501,082 496,356

　Individual annuities 　Group life insurance 74,394 49,321

　Group annuities 　Total 575,476 545,677

Surgery protection

　Individual life insurance 1,670,518 1,677,071

　Individual annuities 　Group life insurance 　Group annuities 　Total 1,670,518 1,677,071

2- 06 Policy amount in force by type of individual life insurance and individual annuities(Millions of yen)

As of March 31, 2013 2014

Pure death-protection insurance

Whole life insurance ¥ 7,613,811 ¥ 7,980,007

Whole life insurance with term rider

Term life insurance 14,169,640 14,722,876

Total 34,556,341 35,556,338

Mixed insurance

Endowment insurance 992,639 1,169,086

Endowment insurance with term rider

Term life insurance with living benefits

Total 1,115,467 1,315,664

Pure endowment insurance 1,694,524 1,756,085

Annuity products

Individual annuities 412,709 466,915

Riders for disaster and disease

Rider to cover accidental death 3,632,540 3,484,766

Injury rider 3,422,316 3,330,923

Comprehensive protection riders covering hospitalization 513 489

Comprehensive protection riders covering hospitalization for family 23 21

Comprehensive protection riders covering lifestyle-related disease 55 52

Medical treatment rider for adults 1,340 1,295

Medical treatment rider for women 1,303 1,281

Lifestyle diseases medical treatment rider 17 16

New medical treatment rider for women 5 4

Cancer rider 241 241

Rider to cover initial period of hospitalization 6,376 6,514Notes: 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 benefi ts for hospitalization.



091

2- 07 Change in policy amount in forceIndividual life insurance

(Millions of yen)

2013 2014

For the years ended March 31, Number Amount Number Amount

Balance at the beginning of the fiscal year 5,602,189 ¥35,707,301 5,958,963 ¥37,366,333

New policy amount 607,184 4,396,676 517,946 3,814,291

Increase from renewal 15,449 53,978 15,013 55,283

Increase from reinstatement 19,216 111,453 19,558 111,830

Increase in policy amount [196] 1,639 [248] 2,523

Increase from conversion

Increase for other reasons 6,084 62,621 13,612 191,967

Decrease from death 8,945 56,515 9,719 60,056

Decrease for maturity 29,089 107,644 30,587 114,426

Decrease in policy amount [41,135] 197,491 [37,478] 171,793

Decrease from conversion

Surrender amount 202,965 1,652,869 193,104 1,495,343

Lapse amount 39,002 243,673 37,362 224,789

Decrease for other reasons 11,158 709,142 18,320 847,729

Balance at the end of the fiscal year 5,958,963 37,366,333 6,236,000 38,628,089

[Increase ratio (%)] [6.4%] [4.6%] [4.6%] [3.4%]

Net increase 356,774 1,659,032 277,037 1,261,755

[Increase ratio (%)] [12.0%] [29.1%] [(22.3%)] [(23.9%)]Note: Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance.

Individual annuities(Millions of yen)

2013 2014


Balance at the beginning of the fiscal year 71,560 ¥369,759 82,261 ¥412,709

New policy amount 13,343 57,931 15,719 75,088

Increase from reinstatement 134 657 141 632

Increase from conversion

Increase for other reasons 1,179 4,332 1,311 4,019

Decrease from death 40 188 61 317

Decrease for maturity 248 157 528 325

Decrease in annuity amount [208] 1,211 [401] 1,858

Decrease from conversion

Surrender amount 2,739 14,011 3,416 18,231

Lapse amount 281 1,381 245 1,122

Decrease for other reasons 647 3,020 769 3,679

Balance at the end of the fiscal year 82,261 412,709 94,413 466,915

[Increase ratio (%)] [15.0%] [11.6%] [14.8%] [13.1%]

Net increase 10,701 42,949 12,152 54,205

[Increase ratio (%)] [(3.8%)] [(0.3%)] [13.6%] [26.2%]Notes: 1. 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.

2. “Decrease for maturity” is presented separately in this data book.



092

Group life insurance(Millions of yen)

2013 2014


Balance at the beginning of the fiscal year 2,300,322 ¥1,268,718 2,128,076 ¥1,345,632New policy amount 12,725 5,602 15,825 5,104Increase from renewal 246,493 320,024 216,254 305,056Increase from reinstatement 59 226 Increase in policy amount (increase by additional purchase of riders) 92,916 211,370 77,269 181,637Increase in policy amount [1,826] 787 [1,392] 508Increase for other reasons 173 58 86 673Decrease from death 10,543 1,388 10,246 1,661Decrease for maturity 258,782 335,333 242,685 308,324Withdrawals 254,015 65,591 224,734 56,785Decrease in policy amount [424,221] 57,450 [489,465] 65,559Surrender amount 997 994 970 790Lapse amount 89 338 29 107Decrease for other reasons 186 60 143 149Balance at the end of the fiscal year 2,128,076 1,345,632 1,958,703 1,405,237[Increase ratio (%)] [(7.5%)] [6.1%] [(8.0%)] [4.4%]Net increase (172,246) 76,913 (169,373) 59,604[Increase ratio (%)] [] [10.0%] [] [(22.5%)]

Notes: 1. Each amount above is the total of pure death-protection insurance, mixed insurance and pure endowment insurance.

2. The number of policies refl ects the total number of insured parties.

Group annuities(Millions of yen)

2013 2014


Balance at the beginning of the fiscal year 181,316 ¥57,811 191,934 ¥56,503New policy amount Annuity payment 246,949 2,038 244,140 2,097Lump-sum payment 9,483 2,457 8,398 2,201Surrender amount Balance at the end of the fiscal year 191,934 56,503 184,705 55,196[Increase ratio (%)] [5.9%] [(2.3%)] [(3.8%)] [(2.3%)]Net increase 10,618 (1,308) (7,229) (1,306)[Increase ratio (%)] [] [] [] []

Notes: 1. The amounts at the beginning and end of the fi scal year 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 refl ects 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

fi ve 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 fi gures for the fi scal year ended March 31, 2014.

<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



093

(Yen)

Contract Date Assumed interest rate Years elapsed Ongoing policyPolicies to which nursing care applies,

ending at death of policyholder

Nov. 2, 2013 1.00% 1 year ¥ ¥7,533

Nov. 2, 2012 1.50 2 0

Nov. 2, 2011 1.50 3 0

Nov. 2, 2010 1.50 4 0

Nov. 2, 2009 1.50 5 3,220 3,220

Nov. 2, 2008 1.50 6 0

Nov. 2, 2007 1.50 7 0

Nov. 2, 2006 1.50 8 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, 2014.

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, 2014 (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, 2014.

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, 2013 2014Individual life insurance 4.6% 3.4%Individual annuities 11.6 13.1Group life insurance 6.1 4.4Group annuities (2.3) (2.3)

3- 02 Average policy amount for new policies and policies in force (individual life insurance)(Thousands of yen)

For the years ended March 31, 2013 2014Average policy amount for new policies ¥7,241 ¥7,364Average policy amount for policies in force 6,270 6,194

Note: The above fi gures 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 fi scal year)(%)

For the years ended March 31, 2013 2014Individual life insurance 12.3% 10.2%Individual annuities 18.2 21.0Group life insurance 0.4 0.4

Note: The above fi gures do not include the increase from the conversion.

3- 04 Lapse and surrender rate (to policy amount in force at the beginning of the fi scal 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, 2013 2014Individual life insurance 5.55% 4.76%Individual annuities 5.00 5.75Subtotal 5.54 4.77Group life insurance 4.55 4.90

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, 2013 2014Individual life insurance + Individual annuities 5.31% 4.61%



094

3- 05 Average premium for new policies of individual life insurance (monthly payment contracts)(Yen)

For the years ended March 31, 2013 2014Average premiums for new policies ¥11,031 ¥11,311

Note: The above fi gures do not include increase from conversion.

3- 06 Mortality rate (individual life insurance: primary coverage)(‰)

For the years ended March 31, 2013 2014Based on number of policies 1.55‰ 1.59‰Based on policy amount 1.55 1.58

3- 07 Incidence rates of riders (individual life insurance)(‰)

2013 2014

For the years ended March 31,Number of

policies Policy amount

Number ofpolicies Policy amount

Accidental death protection 0.094‰ 0.110‰ 0.095‰ 0.101‰Disability protection 0.075 0.028 0.126 0.041Accidental hospitalization protection 3.576 83.789 3.543 86.717Sickness hospitalization protection 35.236 573.425 36.157 588.196Lifestyle-related disease hospitalization protection 13.580 379.866 14.166 399.877Sickness and accidental surgery protection 40.561 40.357Lifestyle-related disease surgery protection 8.458 9.465

3- 08 Operating expense ratio (to insurance premiums)(%)

For the years ended March 31, 2013 2014Operating expense ratio 11.8% 11.9%

4 Indicators Related to Asset Management (General Account)

4- 01 Overview of asset management (general account)Overview of the asset management for the fi scal year ended March 31, 2014(1) Investment EnvironmentDuring the fiscal year ended March 31, 2014, the Japanese economy continued to grow. In the first half, public investment as well as exports showed sizable growth thanks to the government’s economic stimulus package and the still depreciating yen. In addition, private consumption was solid thanks to the improvement in consumer confidence supported by the buoyant stock market. In the second half, there was a last-minute surge in demand in view of the coming consumption tax hike from April 2014, resulting in substantial increases in the sales of durable goods and private housing investment. While the real GDP growth rate temporarily stalled at one stage due to a decel-eration of the growth momentum in public investment and exports, which have been driving the economy, it proved to be generally solid throughout the fiscal year. The real GDP growth rate, year on year, was 2.9% for the April–June quarter of last year, 1.3% for the July–September quarter, 0.3% for the October–December quarter, and 6.7% in the January–March quarter. The Japanese bond market remained under the strong influence of the quantitative and qualitative monetary easing policy of the Bank of Japan (BoJ) implemented in April last year. As the BoJ announced that it would double in two years the monetary base, as well as its hold-ing of long-term Japanese government bonds (JGBs) and exchange traded funds (ETFs), while more than doubling the period of the aver-age remaining maturity of its long-term JGBs, concern grew over the potential decline of market liquidity immediately after the introduction of this new BoJ policy, triggering temporary interest rate volatility. On the other hand, since the BoJ announced “it would aim to realize the two percent consumer price stability target, and continue its quantitative and qualitative monetary easing until such time the Japanese economy can maintain a two percent inflation rate over the long term,” the interest rate rise in the short and mid-term maturity sector turned out to be limited thanks to the time axis effect, which in turn spread to the long-term maturity sector, slightly reducing interest rate volatility in the bond market. As the market settled down in the period up to the fiscal year-end, the interest rate was on a gradual decline trend. The yield on 10-year JGBs, which is the bellwether for the long-term interest rate, went down to 0.325% at one point in April 2013, then soared up to 0.996% at one point in May 2013, before it declined to 0.642% (up 0.082 of a percentage point year on year) at the end of March 2014. The Japanese stock markets soared. The Nikkei Stock Average went up from ¥12,397.91 at the end of March 2013 to ¥15,942.60 in the middle of May 2013, encouraged by the quantitative and qualitative monetary easing policy by the BoJ implemented in April last year, along with the government’s growth strategies. Then the index went down to a level below the ¥13,000 mark in a correction phase, discouraged by tapering quantitative easing in the U.S. and concern over emerging economies, before a recovery trend gradually prevailed on the back of solid domestic corporate earnings. As of March 31, 2014, the Nikkei stood at ¥14,827.83, up ¥2,429.92 from its level a year earlier. In foreign exchange markets, the yen further depreciated. The dollar to yen exchange rate soared from ¥94.22 against the U.S. dollar at the end of March 2013, to ¥103.74 against the U.S. dollar at one point in May 2013, encouraged by the quantitative and qualitative mone-tary easing policy of the BoJ implemented in April last year. Then investors bought back yen in a risk-off market sentiment, discouraged by tapering quantitative easing in the U.S. and growing geopolitical tension, resulting in the yen appreciating against the U.S. dollar to around



095

the ¥94 level at one point, before soaring again beyond ¥100 through the period into the second half, encouraged by developments in the U.S., including the economic recovery and the agreement between the ruling and opposition parties over the debt ceiling issues. This trend of a weak yen has generally prevailed to date, and the yen was trading at ¥103.23 against the U.S. dollar as of March 31, 2014, weakening ¥8.97 against the U.S. dollar from a year earlier.

(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 the concept of ALM (asset liability management, the comprehensive management of assets and liabilities). Specifically, Sony Life is investing primarily in ultra long-term JGBs 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. On the other hand, it is our policy to invest within certain limits in riskier assets including stocks.

(3) Results of InvestmentAs of March 31, 2014, general account assets totaled ¥5,984.3 billion, up 10.8%, or ¥582.2 billion, from a year earlier. Within general account assets, Japanese government and corporate bonds totaled ¥5,190.0 billion (accounting for 86.7% of total general account assets), foreign bonds ¥79.8 billion (1.3%), Japanese stocks ¥33.2 billion (0.6%), monetary trusts ¥305.3 billion (5.1%), policy loans ¥154.1 billion (2.6%), real estate ¥66.5 billion (1.1%) and cash and deposits and call loans ¥32.6 billion (0.5%).

Portfolio of general account assetsGeneral account assets

(Millions of yen)

2013 2014As of March 31, Amount % of total Amount % of total

Cash and deposits, call loans ¥ 103,321 1.9% ¥ 32,617 0.5%Securities repurchased under resale agreements Pledged money for bond borrowing transaction Monetary claims purchased Securities under proprietary accounts Monetary trusts 306,122 5.7 305,346 5.1Securities 4,683,747 86.7 5,334,049 89.1　Japanese government and corporate bonds 4,561,048 84.4 5,190,065 86.7　Japanese stocks 31,106 0.6 33,205 0.6　Foreign securities 87,428 1.6 106,752 1.8　　Bonds 62,022 1.1 79,835 1.3　　Stocks, etc. 25,406 0.5 26,916 0.4　Other securities 4,164 0.1 4,026 0.1Loans 145,104 2.7 154,219 2.6　Policy loans 145,019 2.7 154,180 2.6　Commercial loans 85 0.0 38 0.0Real estate 70,301 1.3 66,532 1.1Deferred tax assets 13,724 0.3 13,643 0.2Other assets 80,038 1.5 78,173 1.3Reserve for possible loan losses (235) (0.0) (242) (0.0)Total ¥5,402,126 100.0% ¥5,984,341 100.0%　Of which, foreign-currency-denominated assets 41,756 0.8 58,195 1.0

Changes in general account assets by categories(Millions of yen)

For the years ended March 31, 2013 2014Cash and deposits, call loans ¥ 38,452 ¥ (70,704)Securities repurchased under resale agreements Pledged money for bond borrowing transaction Monetary claims purchased Securities under proprietary accounts Monetary trusts 17,824 (775)Securities 569,218 650,301　Japanese government and corporate bonds 585,292 629,017　Japanese stocks (13,946) 2,099　Foreign securities (2,733) 19,323　　Bonds 2,389 17,812　　Stocks, etc. (5,123) 1,510　Other securities 606 (138)Loans 6,195 9,114　Policy loans 6,236 9,161　Commercial loans (41) (47)Real estate (2,658) (3,769)Deferred tax assets (13,261) (80)Other assets 7,819 (1,864)Reserve for possible loan losses (21) (6)Total ¥623,569 ¥582,215　Of which, foreign-currency-denominated assets (1,239) 16,438



096

4- 02 Investment yield by type of asset (general account)(%)


Cash and deposits, call loans 0.06% 0.05%

Securities repurchased under resale agreements

Pledged money for bond borrowing transaction


Securities under proprietary accounts

Monetary trusts 1.96 1.98

Securities 2.09 2.18　Japanese government and corporate bonds 2.09 2.06　Japanese stocks 5.98 2.22　Foreign securities 0.93 8.30

Loans 3.86 3.80　Commercial loans 0.71 0.64

Real estate 5.13 5.65

Total 2.12% 2.20%

Notes: 1. The denominator for the investment yield calculation is a daily averaged carrying amount, while the numerator is investment income minus investment

expenses.

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 ¥ 57,825 ¥ 54,814

Securities repurchased under resale agreements

Pledged money for bond borrowing transaction


Securities under proprietary accounts

Monetary trusts 268,616 268,611

Securities 4,319,240 4,900,002　Japanese government and corporate bonds 4,199,159 4,784,298　Japanese stocks 30,637 26,297　Foreign securities 86,275 86,600

Loans 141,034 149,675　Commercial loans 107 314

Real estate 69,071 64,367

Total ¥4,926,539 ¥5,512,218　Of which, overseas investment 86,281 87,825

4- 04 Investment income (general account)(Millions of yen)


Interest income and dividends ¥108,539 ¥122,160

Gains on securities under proprietary accounts

Income from monetary trusts, net 5,259 5,311

Income from trading securities, net

Gains on sale of securities 2,420 773

Gains on redemption of securities 2

Gains on derivatives, net 172

Foreign exchange gains, net 1,183

Reversal of reserve for possible loan losses

Other investment income 13 47

Total ¥116,232 ¥129,652



097

4- 05 Investment expenses (general account)(Millions of yen)


Interest expense ¥ 43 ¥ 48Losses on securities under proprietary accounts Losses on monetary trusts, net Losses on trading securities, net Losses on sale of securities 1,587 528Devaluation losses on securities 327 Losses on redemption of securities Losses on derivatives, net 226 Foreign exchange losses 1,176 Provision for reserve for possible loan losses 21 6Write-off of loans Depreciation of real estate for rent and others 2,115 2,077Other investment expenses 6,188 5,845Total ¥11,686 ¥8,506

4- 06 Interest income and dividends (general account)(Millions of yen)


Interest income from deposits ¥ 0 ¥ 0Interest income and dividends from securities 92,167 106,187　Interest income from Japanese bonds 87,634 98,588　Dividends from Japanese stocks 536 397　Interest income and dividends from foreign securities 3,746 6,740Interest income from loans 5,450 5,691Income from real estate for rent 10,854 10,250Total, including others ¥108,539 ¥122,160

4- 07 Gains on sale of securities (general account)(Millions of yen)


Gains on sale of Japanese bonds (including JGBs) ¥ 3 ¥ 1Gains on sale of Japanese stocks, etc. 2,066 673Gains on sale of foreign securities 349 98Total ¥2,420 ¥773

4- 08 Losses on sale of securities (general account)(Millions of yen)


Losses on sale of Japanese bonds (including JGBs) ¥ 0 ¥ Losses on sale of Japanese stocks, etc. 412 487Losses on sale of foreign securities 1,174 41Total ¥1,587 ¥528

4- 09 Devaluation losses on securities (general account)(Millions of yen)


Devaluation losses on Japanese bonds (including JGBs) ¥ ¥Devaluation losses on Japanese stocks, etc. 327 Devaluation losses on foreign securities Total ¥327 ¥



098

4- 10 Securities (general account)(Millions of yen)


Japanese government bonds ¥4,527,332 96.7% ¥5,158,972 96.7%Japanese municipal bonds 3,490 0.1 1,003 0.0Japanese corporate bonds 30,224 0.6 30,089 0.6　Of which, public corporation bonds 27,108 0.6 27,016 0.5Japanese stocks 31,106 0.7 33,205 0.6Foreign securities 87,428 1.9 106,752 2.0　Bonds 62,022 1.3 79,835 1.5　Stocks, etc. 25,406 0.5 26,916 0.5Other securities 4,164 0.1 4,026 0.1Total ¥4,683,747 100.0% ¥5,334,049 100.0%

4- 11 Balance of securities by remaining period (general account)(Millions of yen)

2013

As of March 31,Due in

1 year or less

Due after

1 year through

3 years

Due after

3 years through

5 years

Due after

5 years through

7 years

Due after

7 years through

10 years

Due after

10 years

(including no

fixed maturity) Total

Securities ¥7,840 ¥37,071 ¥29,686 ¥9,392 ¥29,531 ¥4,570,224 ¥4,683,747

　Japanese government bonds 3,631 23,197 15,528 16,115 4,468,860 4,527,332

　Japanese municipal bonds 2,472 1,018 3,490

　Japanese corporate bonds 8,373 637 21,213 30,224

　Japanese stocks 31,106 31,106

　Foreign securities 1,736 4,393 13,520 7,995 13,401 46,380 87,428

　　Bonds 4,338 2,318 12,024 43,341 62,022

　　Stocks, etc. 1,736 4,393 9,182 5,677 1,376 3,039 25,406

　Other securities 89 1,397 13 2,664 4,164

Monetary claims purchased Certificates of deposit Others Total ¥7,840 ¥37,071 ¥29,686 ¥9,392 ¥29,531 ¥4,570,224 ¥4,683,747

(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 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

4- 12 Fiscal year-end yields on bonds (general account)(%)

As of March 31, 2013 2014Japanese government and corporate bonds 2.11% 2.08%Foreign bonds 1.36 3.70



099

4- 13 Japanese stock holdings by industry (general account)(Millions of yen)

2013 2014

As of March 31, Amount

Composition


(%)

Fisheries, agriculture and forestry ¥ % ¥ %Mining 124 0.4 Construction 1,388 4.5 1,838 5.5Manufacturing industries

　Food products 326 1.1 554 1.7　Textiles and clothing 　Pulp and paper 　Chemicals 444 1.4 750 2.3　Medical products 645 2.1 736 2.2　Oil and coal products 　Rubber products 　Glass and stone products 　Steel 　Non-steel metals 270 0.9 357 1.1　Metal products 　Machinery 1,114 3.6 1,153 3.5　Electric appliances 3,416 11.0 4,150 12.5　Transportation vehicles 2,544 8.2 2,304 6.9　Precision machinery 131 0.4 241 0.7　Others 88 0.3Electric and gas utilities 631 2.0 631 1.9Transportation/information telecommunications

　Ground transportation 807 2.6 1,062 3.2　Water transportation 　Air transportation 　Warehouses/transportation 　Information/telecommunications 1,786 5.7 3,041 9.2Commerce

　Wholesalers 1,038 3.3 277 0.8　Retailers 4,613 14.8 1,482 4.5Financial services/insurance

　Banking 　Securities and commodity futures trading 　Insurance 10,107 32.5 12,000 36.1　Other financial services 363 1.2 846 2.6Real estate Service companies 1,349 4.3 1,685 5.1Total ¥31,106 100.0% ¥33,205 100.0%

Note: Categories of stock holdings by industry are based on the classifi cation by the Securities Identifi cation Code Committee of Japan.

4- 14 Loans (general account)(Millions of yen)

As of March 31, 2013 2014Policy loans ¥145,019 ¥154,180　　Policyholder loans 129,523 138,236　　Automatic premium loans 15,495 15,944Commercial loans 85 38　[Of which, loans to borrowers located outside of Japan] [] []　　Corporate loans 　　　[Of which, corporate loansdomestic] [] []　　Loans to national, international and government-affiliated organizations 　　Loans to public entities 　　Mortgage loans 　　Consumer loans 　　Other loans 85 38Total ¥145,104 ¥154,219



100

4- 15 Tangible fi xed assets (general account)Tangible fixed assets (Millions of yen)

2013

For the year ended March 31,

Balance at the beginning of the

fiscal yearIncrease in the current period

Decrease in the current period

Amount of depreciation in

the current period

Balance at the end of the current period

Amount of accumulated depreciation

% of accumulated depreciation

Land ¥31,469 ¥ 55 ¥ 434 ¥ ¥31,089 ¥ %

[434]

Buildings 41,491 401 526 2,153 39,212 20,734 34.6

[512]

Leased assets 207 21 185 141 43.3

Construction in progress Other tangible assets 511 93 4 117 482 1,487 75.5

[3]

Total ¥73,678 ¥549 ¥ 965 ¥2,293 ¥70,969 ¥22,363 35.9%

[951]　Of which, investment 　 and rental properties 69,942 224 885 2,057 67,231 20,058 34.8

[877]

(Millions of yen)

2014

For the year ended March 31,

Balance at the beginning of the

fiscal yearIncrease in the current period

Decrease in the current period

Amount of depreciation in

the current period

Balance at the end of the current 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

Note: Figures in [ ] in the “Decrease in the current period” describe the amount of impairment losses.

Balance of real estate and number of buildings for rent (Millions of yen)

As of March 31, 2013 2014Real estate balance ¥70,301 ¥66,532　For corporate use 3,448 3,442　For rent 66,853 63,090Number of buildings for rent 4 3

4- 16 Overseas investment (general account)Details by assets (Millions of yen)


Assets denominated in foreign currency (yen amount not fixed)

　Foreign bonds ¥18,681 21.0% ¥ 36,015 33.6%　Foreign stocks 1,401 1.6 1,725 1.6　Cash, deposits and others 21,673 24.4 20,453 19.1　Subtotal 41,756 47.0 58,195 54.3Assets 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 47,169 53.0 49,059 45.7　Subtotal 47,169 53.0 49,059 45.7Total

　Overseas investment ¥88,926 100.0% ¥107,254 100.0%Note: Assets denominated in foreign currency (yen amount fi xed) are recorded under assets on the balance sheets at the fi xed yen value that was determined at

settlement with foreign exchange forward contracts.



101

Overseas investment by region(Millions of yen)

2013

Foreign securities

Loans to borrowers

located outside of Japan

Of which,

foreign bonds

Of which,

foreign stocks, etc.

As of March 31, Amount % of total Amount % of total Amount % of total Amount % of total

North America ¥18,757 21.5% ¥10,967 17.7% ¥ 7,790 30.7% ¥ %

Europe 50,441 57.7 43,341 69.9 7,100 27.9

Oceania 7,714 8.8 7,714 12.4

Asia

Latin America 10,515 12.0 10,515 41.4

Middle East

Africa

International organizations

Total ¥87,428 100.0% ¥62,022 100.0% ¥25,406 100.0% ¥ %

(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% ¥ %

Foreign-currency-denominated assets by currency(Millions of yen)

2013 2014

As of March 31, Amount % of total Amount % of total

U.S. dollar ¥27,360 65.5% ¥45,301 77.8%

Euro 5,992 14.4 9,148 15.7

Australian dollar 7,782 18.6 3,270 5.6

British pound 617 1.5 469 0.8

Offshore renminbi 2 0.0 3 0.0

New Taiwanese dollar 1 0.0 1 0.0

Total ¥41,756 100.0% ¥58,195 100.0%

4- 17 Yield on overseas investments (general account)(%)


Yield on overseas investments 0.93% 8.19%Note: Yield on overseas investments is a total of foreign-currency-denominated assets and yen-denominated assets.



102

5 Status of Insurance Claims Paying Ability

5- 01 Solvency margin ratio(Millions of yen)

As of March 31, 2013 2014(A) Total solvency margin ¥ 872,502 ¥ 954,157　Common stock, etc. 252,363 274,027　Reserve for price fluctuations 32,264 41,556　Contingency reserve 59,561 63,671　General reserve for possible loan losses 0 0　Net unrealized gains on other securities multiplied by 90% (100% if losses) 114,602 118,354　Net unrealized gains on real estate multiplied by 85% (100% if losses) (2,012) 75　Amount excluded from deferred tax assets 　Unallotted portion of reserve for policyholders’ dividends 464 174　Deferred tax assets 70,604 78,868　Excess amount of policy reserves based on Zillmer method 372,561 400,056　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 (27,907) (20,626)　Deductible items (2,000)(B) Total risk

　　(R1 + R8)2 + (R2 + R3 + R7)2 + R4 76,472 80,904　Insurance risk R1 21,871 22,512　Third-sector insurance risk R8 8,307 8,368　Assumed interest rate risk R2 29,054 29,616　Minimum guarantee risk R7 11,474 12,896　Asset management risk R3 27,592 30,023　Business management risk R4 1,966 2,068Solvency margin ratio　[(A)/{(1/2) × (B)}] × 100 2,281.8% 2,358.7%

Notes: 1. The fi gures 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, 2013 2014(1) Total amount to be recorded as assets (= + + + – ) ¥6,503.4 ¥7,056.2 Total assets on the balance sheet 5,952.7 6,624.9 Difference between fair value and balance sheet amount of securities 551.7 430.3 Unrealized gain or loss on tangible fixed assets (1.0) 1.0 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 (= – – – – ) 5,106.5 5,709.8 Total liabilities on the balance sheet 5,610.4 6,255.6 Reserve for price fluctuations 32.2 41.5 Contingency reserve 59.5 63.6 Part of reserves for future insurance claim payment 373.0 400.2 Excess of amount equivalent to surrender values ( (a)) 372.5 400.0 Unallocated amount in reserve for policyholders’ dividends ( (b)) 0.4 0.1 Deferred tax liabilities for available-for-sale securities 39.0 40.3Real net assets (A) (1)–(2) (including unrealized gains and losses on held-to-maturity securities) 1,396.8 1,346.4(3) Unrealized gains and losses on held-to-maturity securities 551.7 430.3Real net assets (B) (1)–(2)–(3) (excluding unrealized gains and losses on held-to-maturity securities) 845.1 916.1

Note: According to the “Comprehensive Guideline for Insurance Companies” defi ned 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.



103

6 Balance of Separate Account Assets(Millions of yen)

As of March 31, 2013 2014

Individual variable life insurance and individual variable annuities ¥550,624 ¥640,562

Group annuities

Total separate account ¥550,624 ¥640,562

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)

2013 2014

As of March 31, Number Amount Number Amount

Variable life insurance (whole life type) 577,454 ¥7,113,036 610,296 ¥7,302,062

Variable life insurance (limited term type) 43,327 146,778 47,944 164,508

Variable life insurance (term type) 1,398 46,810 1,352 45,807

Total 622,179 ¥7,306,626 659,592 ¥7,512,377

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

Individual variable annuities(Millions of yen)

2013 2014

As of March 31, Number Amount Number Amount

Individual variable annuities 27,677 ¥146,759 30,502 ¥161,758Note: 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

(Millions of yen)

2013 2014

As of March 31, Amount % of total Amount % of total

Cash and deposits, call loans ¥ 21,139 3.8% ¥ 17,838 2.8%

Securities 527,787 95.9 620,666 96.9

　Japanese government and corporate bonds 159,256 28.9 168,661 26.3

　Japanese stocks 30,778 5.6 37,237 5.8

　Foreign securities 188,010 34.1 235,435 36.8

　　Bonds 44,775 8.1 51,863 8.1

　　Stocks, etc. 143,235 26.0 183,571 28.7

　Other securities 149,741 27.2 179,332 28.0

Loans

Others 1,697 0.3 2,057 0.3

Reserve for possible loan losses

Total ¥550,624 100.0% ¥640,562 100.0%




104

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 ¥ 9,147 ¥ 11,773Gains on sale of securities 8,033 16,052Gains on redemption of securities 15 74Valuation gains on securities 103,039 143,031Foreign exchange gains, net 5,036Gains on derivatives, net Other investment income 0 0Losses on sale of securities 2,558 680Losses on redemption of securities 117 141Devaluation losses on securities 32,237 92,255Foreign exchange losses, net 1,390 Losses on derivatives, net Other investment expenses 331 221Net investment gains (losses) ¥ 83,601 ¥ 82,670


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)

2013 2014


amount

Net valuation

gains (losses)

recorded

in income

Balance sheetamount

Net valuationgains (losses)

recordedin income

Trading-purpose securities ¥527,787 ¥70,801 ¥620,666 ¥50,776Note: 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, 2013 2014

Number of agencies 1,973 1,974

9 Number of Employees and Recruits

9- 01 Number of employees

As of March 31, 2013 2014

Office employees 1,694 1,816 　[Male] [887] [902]　[Female] [807] [914]Sales employees 4,629 4,737*　[Male] [4,590] [4,678]　[Female] [39] [59]

* Number of Lifeplanner sales employees (including those rehired on a fi xed-term contract basis after retirement and contracted Lifeplanner sales employees) is

4,216 as of March 31, 2014.



105

9- 02 Number of recruits


Office employees 290 245

　[Male] [42] [48]

　[Female] [248] [197]

Sales employees 388 444

　[Male] [380] [422]

　[Female] [8] [22]

9- 03 Average age and years of service

2013 2014

As of March 31, Average age

Average years

of service Average ageAverage years

of service

Office employees 39.4 8.8 39.9 8.9

　[Male] [41.7] [11.0] [41.9] [11.4]

　[Female] [36.9] [6.5] [37.9] [6.4]

Sales employees 45.4 10.4 45.5 10.2

　[Male] [45.4] [10.5] [45.6] [10.3]

　[Female] [40.0] [5.0] [40.3] [2.4]

10 Average Salary

10- 01 Average salary (offi ce employees)(Thousands of yen)


Office employees ¥424 　¥399Note: The average monthly salary is the tax-inclusive standard salary in March for each fi scal year, excluding bonuses and overtime pay.

10- 02 Average compensation (sales employees)(Thousands of yen)


Sales employees ¥662 　¥594Note: The average monthly compensation is the tax-inclusive compensation in March for each fi scal year, excluding bonuses and commuting allowances.


106

OrganizationAs of July 1, 2014

General Meeting of Shareholders

Board of Directors Board of Auditors

Office of the Auditor

Chief ActuaryCompensation Advisory 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 OfficeAgency 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

Independent Agency Sales DivisionIndependent Agents Planning DivisionIndependent Agents Sales Promotion DivisionIndependent Agents Sales Support Division


Product Development Division

Business Administration Control DivisionCompliance DivisionLegal Division

Investment Division

Information System Planning DivisionInformation System Service Promotion DivisionInformation System Development 1Information System Development 2

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

Accounting Division

Investment Administration Division

Investment Planning Division

Sapporo Service Center

Customer Center

Voice of Customer Division

Operations Planning Division

Internal Audit Division

Human Resources Division

General Affairs Division


107

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 Head offi ce 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 defi cit 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 certifi cation 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 defi ned

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 certifi cation 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-Profi t) 2006 Jan Total assets exceeded ¥3 trillion Feb Commenced sales of Increasing Term Life Insurance (Low

Surrender Payments, Non-Profi t) Aug Introduction of cashless system for fi rst 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

head offi ce 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 Bank

2008 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 offi ce2009 April Sales of cancer hospitalization insurance Sales of advanced medical treatment rider Sales of hospitalization surgical benefi ts rider Added benefi ts for bone marrow donors July Opened Taipei representative offi ce Tie-up with Specifi ed Nonprofi t 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

Sep 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 Corporation

2013 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


108

Directors and Statutory AuditorsAs of July 1, 2014

Directors and Statutory Auditors

Title Name Other Concurrent Responsibilities*1

President, Representative Director Katsumi Ihara*2 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.

Representative Director Masamitsu Shimaoka*2 Director of Sony Financial Holdings Inc.

Director Yuichiro Sumimoto*2

Director Tomoo Hagimoto*2

Director Hirotoshi Watanabe Senior Managing Director of Sony Financial Holdings Inc.



Director of AEGON Sony Life Insurance Co. ,Ltd.

Director Yutaka Ito Managing Director of Sony Financial Holdings Inc.



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 Hiroshi Sano Standing Statutory Auditor of Sony Financial Holdings Inc.

Statutory Auditor of Sony Assurance Inc.

Statutory Auditor of Sony Bank Inc.

Statutory Auditor Nobuhiko Fujii 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 Offi cer

Katsumi Ihara

President

Masamitsu Shimaoka

Senior Executive Vice President

Yuichiro Sumimoto


Tomoo Hagimoto


Tohru Hanatsuya

Executive Vice President

Hideki Yamada


Taketoshi Nonaka


Yoshihiko Kaiya


Kiyoshi Watanabe


Hiroaki Kiyomiya


Kazuhiro Wakayama


Jun Shirai

Senior Vice President

Iwao Nakanouchi


Katsuhiko Oka


So Sato


Nobuhiro Sakurai


Tatsuo Hasegawa


Kazuhiro Yamada


Noboru Mitsui


Offi cers


109

Corporate DataAs of March 31, 2014

Global Network

Sony Life Insurance Co., Ltd.

Head Offi ce

1-1-1, Minami Aoyama, Minato-ku, Tokyo 107-8585, Japan

Established: August 1979

Common Stock: ¥70,000 million

Employees: 6,553 (including 4,216 Lifeplanner sales employees)

Total Assets: ¥6,624,903 million

Fiscal Year: April 1 to March 31

Taipei Representative Offi ce

28F, No.66, Sec. 1, Zhongxiao W. Rd. Zhongzheng District, Taipei, 10018, Taiwan

Tel: +886-02-7720-0606

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