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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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
(Years ended March 31)
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
(%)
(Years ended March 31)
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
Income
Income from Insurance Premiums and Insurance Claims and Other Payments
Ordinary Profi t and Net Income
¥960.9 billion/¥327.2 billion
¥69.2 billion/¥37.0 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)
(Years ended March 31)
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)
(Years ended March 31)
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
¥212.3 billion/¥8.5 billion
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
¥369.2 billion/¥70.0 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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Value of existing business
019
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
As of March 31 2013 2014 Change
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
Value of existing business
(As of March 31)
(Billions of yen)
Previous fiscal year
Current fiscal year
One year later
Two years later
Use of “discount rate” to determine present value
........
Adjusted net worth
Value of existing business
020
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
As of March 31 2013 2014 Change
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)
As of March 31 2013 2014 Change
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 Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
023
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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
BTP 12 2nd to 12th month after joining
BTP 24 2nd to 24th month after joining
OJT (process meetings, role playing, joint work)
BTP 36 2nd to 36th month after joining
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
030
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Consulting-Based Sales
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Consulting-Based Sales
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Reporting, assignment
Reporting, assignment
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)
Sony Life Insurance Co., Ltd. Annual Report 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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Executive Officers Board
Risk Management Committee
Chief Actuary
Integrated Risk ManagementCorporate Planning Division
Other managerial risksOperational risksInsurance underwriting riskALM Division
Going concern riskOperations Administration Division
Office riskGeneral Affairs Division
Sales Administration Division
Personnel riskHuman Resources Division
Sales Administration 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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Executive Officers Board
Protection of Personal Information Promotion Committee
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Executive Officers Board
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
049
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
Sony Life Insurance Co., Ltd. Annual Report 2014
059
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
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%
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
061
(Millions of yen)
2013 2014
Amount
Composition
(%) AmountComposition
(%)
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%
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
(Continued on next page)
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
065
Statements of Changes in Net AssetsSony Life Insurance Co., Ltd.
For the years ended March 31, 2013 and 2014
(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
Changes during the period
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
(Continued on next page)
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Balance at the beginning of the current
period ¥70,000 ¥5,865 ¥5,865 ¥15,478 ¥172,219 ¥187,698 ¥263,563
Changes during the period
Dividends from surplus 2,660 (15,960) (13,300) (13,300)
Net income 37,063 37,063 37,063
Net changes of items other than shareholders’ equity
Total changes during the period 2,660 21,103 23,763 23,763
Balance at the end of the 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
Changes during the period
Dividends from surplus (13,300)
Net income 37,063
Net changes of items other than shareholders’ equity 3,133 3,133 3,133
Total changes during the period 3,133 3,133 26,897
Balance at the end of the current period ¥83,416 ¥(1,513) ¥81,903 ¥369,230
Statements of Changes in Net Assets (Continued)
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
067
Statements of Cash FlowsSony Life Insurance Co., Ltd.
For the years ended March 31, 2013 and 2014
(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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Balance at the beginning of the current
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 life insurance
Group annuities
Asset-formation insurance,
asset-formation annuities Others Total
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
For the years ended March 31, Total
Individual life insurance
Individual annuities
Group life insurance
Group annuities
Asset-formation insurance,
asset-formation annuities Others Total
Annuity payments ¥9,571 ¥ ¥8,659 ¥11 ¥2,097 ¥ ¥ ¥10,768
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
072
3- 11 Insurance benefi ts(Millions of yen)
2013 2014
For the years ended March 31, Total
Individual life insurance
Individual annuities
Group life insurance
Group annuities
Asset-formation insurance,
asset-formation annuities Others Total
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
For the years ended March 31, Total
Individual life insurance
Individual annuities
Group life insurance
Group annuities
Asset-formation insurance,
asset-formation annuities Others Total
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)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
Life Insurance Policyholders Protection Corporation of Japan ¥840 ¥846
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
073
4 Reconciliation to Core Profi t and Non-consolidated Ordinary Profi t(Millions of yen)
For the years ended March 31, 2013 2014
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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
074
(Reference) Reconciliation to core profi t(Millions of yen)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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%
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Policy reserve matching bonds
Stocks of subsidiaries and affiliated companies
Available-for-sale securities 1,065,514 1,189,899 124,384 124,420 35
Japanese government and corporate bonds 1,035,912 1,146,757 110,844 110,866 22
Japanese stocks 12,236 21,205 8,968 8,972 3
Foreign securities 15,891 19,403 3,511 3,521 10
Bonds 15,891 19,403 3,511 3,521 10
Stocks, etc. Other securities 1,474 2,533 1,059 1,059 Monetary claims purchased Certificates of deposit Others
Total ¥5,475,177 ¥6,029,882 ¥554,705 ¥554,814 ¥109
Japanese government and corporate bonds ¥5,385,143 ¥5,913,448 ¥528,305 ¥528,327 ¥ 22
Japanese stocks 12,236 21,205 8,968 8,972 3
Foreign securities 76,323 92,695 16,371 16,455 84
Bonds 76,323 92,695 16,371 16,455 84
Stocks, etc.
Other securities 1,474 2,533 1,059 1,059
Monetary claims purchased
Certificates of deposit
Others 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
Policy reserve matching bonds
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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
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 12,607 12,607 Available-for-sale securities 976,372 1,103,708 127,335 128,555 1,219
Japanese government and corporate bonds 925,308 1,036,956 111,648 111,648 Japanese stocks 14,765 20,998 6,233 6,281 47
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
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 ¥ 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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
As of March 31,Balance sheet
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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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 Others Total
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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
080
Fair value information on securities
a. 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
(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 ¥ 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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
081
O Held-to-maturity securities
(Millions of yen)
2013 2014
As of March 31,Balance sheet
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
As of March 31,Carrying
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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
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 12,607 12,607 Available-for-sale securities 976,372 1,103,708 127,335 128,555 1,219
Japanese government and corporate bonds 925,308 1,036,956 111,648 111,648 Japanese stocks 14,765 20,998 6,233 6,281 47
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
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 ¥ 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
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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 (losses)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
As of March 31,Carrying
amount Fair value
Net
unrealized
gains (losses)
Carrying amount Fair value
Net unrealized
gains (losses)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.
Sony Life Financial Data (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
derivatives Others Total
Interestrate
derivativesCurrency
derivativesEquity
derivativesBond
derivatives Others Total
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.).
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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 [ ].
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
For the years ended March 31, Number Amount Number Amount
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
092
Group 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 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
For the years ended March 31, Number Amount Number Amount
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
For the years ended March 31, 2013 2014
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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%
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
096
4- 02 Investment yield by type of asset (general account)(%)
For the years ended March 31, 2013 2014
Cash and deposits, call loans 0.06% 0.05%
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
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)
For the years ended March 31, 2013 2014
Cash and deposits, call loans ¥ 57,825 ¥ 54,814
Securities repurchased under resale agreements
Pledged money for bond borrowing transaction
Monetary claims purchased
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)
For the years ended March 31, 2013 2014
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
097
4- 05 Investment expenses (general account)(Millions of yen)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
Devaluation losses on Japanese bonds (including JGBs) ¥ ¥Devaluation losses on Japanese stocks, etc. 327 Devaluation losses on foreign securities Total ¥327 ¥
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
098
4- 10 Securities (general account)(Millions of yen)
2013 2014As of March 31, Amount % of total Amount % of total
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
Due after 5 years through
7 years
Due after 7 years through
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
099
4- 13 Japanese stock holdings by industry (general account)(Millions of yen)
2013 2014
As of March 31, Amount
Composition
(%) AmountComposition
(%)
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
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)
2013 2014As of March 31, Amount % of total Amount % of total
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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)(%)
For the years ended March 31, 2013 2014
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
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%
Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
104
7- 03 Net investment gains (losses) of separate account assets in individual variable life insurance and individual variable annuities
(Millions of yen)
For the years ended March 31, 2013 2014
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
Note: Assets relating to individual variable life insurance and individual variable annuities are jointly invested at Sony Life.
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
As of March 31,Balance sheet
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.
Sony Life Performance Indicators (Non-consolidated)
Sony Life Insurance Co., Ltd. Annual Report 2014
105
9- 02 Number of recruits
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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)
For the years ended March 31, 2013 2014
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.
Sony Life Insurance Co., Ltd. Annual Report 2014
106
OrganizationAs of July 1, 2014
General Meeting of Shareholders
Board of Directors Board of Auditors
Office of the Auditor
Chief ActuaryCompensation Advisory Committee
Executive Officers Board
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
Sales Administration 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
Sony Life Insurance Co., Ltd. Annual Report 2014
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
Sony Life Insurance Co., Ltd. Annual Report 2014
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 Sony Assurance Inc.
Director of Sony Bank Inc.
Director of AEGON Sony Life Insurance Co. ,Ltd.
Director Yutaka Ito Managing Director of Sony Financial Holdings Inc.
Director of Sony Assurance Inc.
Director of Sony Bank 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
Senior Executive Vice President
Tomoo Hagimoto
Senior Executive Vice President
Tohru Hanatsuya
Executive Vice President
Hideki Yamada
Executive Vice President
Taketoshi Nonaka
Executive Vice President
Yoshihiko Kaiya
Executive Vice President
Kiyoshi Watanabe
Executive Vice President
Hiroaki Kiyomiya
Executive Vice President
Kazuhiro Wakayama
Executive Vice President
Jun Shirai
Senior Vice President
Iwao Nakanouchi
Senior Vice President
Katsuhiko Oka
Senior Vice President
So Sato
Senior Vice President
Nobuhiro Sakurai
Senior Vice President
Tatsuo Hasegawa
Senior Vice President
Kazuhiro Yamada
Senior Vice President
Noboru Mitsui
Senior Vice President
Offi cers
Sony Life Insurance Co., Ltd. Annual Report 2014
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