Profi le Sony Financial Holdings Inc. (SFH) is a fi nancial holding company with three core subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank). Corporate Vision The Sony Financial Group seeks to become the most highly trusted fi nancial services group by cus- tomers. To this end, the Group will combine many different fi nancial functions (savings, investment, borrowing and protection) to provide high-value-added products and high-quality fi nancial services that meet every customer’s fi nancial needs. Corporate Philosophy Put the Customer First We will provide fi nancial products and services that satisfy customers by embracing their individual views, to ensure that we help them lead prosperous lives with fi nancial security. Give Back to Society We believe that a special commitment to the public good is demanded of a fi nancial services company. Conscious of this, we will realize our vision by upholding the highest level of ethics and a strong sense of purpose, and thereby give back to society. In addition, we will fulfi ll our responsibilities as a good corporate citizen and member of society. Strive for Originality We will constantly strive to come up with fresh ideas from basic principles as we pursue creativity and innovation, instead of merely following custom and convention. Foster an Open Corporate Culture We believe that every employee’s contribution is important to develop our ideal of a fi nancial services company. We will thus foster an open corporate culture where employees can freely express their individuality and demonstrate their abilities to the fullest. Disclaimer This annual report contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Any statements contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials released to the public. These statements are based on assumptions, decisions and judgments made by the management of Sony Financial Group companies, and are based on information that is currently available to them. As such, they are sub- ject to various risks and uncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements in light of new information, future events or other fi ndings. The information contained in this annual report does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever in Japan or abroad. • “Lifeplanner” is a registered trademark of Sony Life. • “SURE” is a registered trademark of Sony Assurance. • “MONEYKit” and “Foreign Currency World” are registered trademarks of Sony Bank. “Carbon Offset Bank” is a trademark of Sony Bank. • In this annual report, currency amounts shown in the tables and graphs have been truncated to the nearest indicated unit. Contents Sony Financial Group’s Financial Highlights 2 Sony Financial Group’s Growth Trajectory 4 A Message from the President 6 Vision and Strategies Today and Tomorrow 7 Sony Financial Group’s Growth Strategies 18 Review of Operations 28 Segment Performance Highlights 29 Life Insurance Business 30 Non-life Insurance Business 32 Banking Business 34 Fiscal 2013 Analysis of Operating Performance 36 SFH (Consolidated) 37 Life Insurance Business 39 Non-life Insurance Business 46 Banking Business 49 Contributions to Sustainable Development 55 Corporate Governance Executive Profi les 56 Basic Stance on Corporate Governance 60 Management System 62 Internal Control 65 Compliance 65 Risk Management 68 Internal Audit 70 Corporate Social Responsibility Stance on Corporate Social Responsibility (CSR) 71 Activity Profi les 72 Environmental Protection Activities 79 Corporate Section 81 Corporate Data 82 Profi les of Group Companies 83 Stock Information 85 Financial Section 87 SFH Consolidated Financial Statements 88 MCEV Results for Sony Life as of March 31, 2014 116 Glossary 122 SFH’s Website Information 127 Please visit SFH’s website to view the Financial Data Book. Detailed fi nancial data for each operating company is presented in a separate publication called the Financial Data Book. The Financial Data Book is available only on SFH’s website. http://www.sonyfh.co.jp/en/financial_info/annualreport.html Sony Financial Holdings Inc. Annual Report 2014 1 Sony Financial Group’s Financial Highlights Sony Financial Holdings (Consolidated) Millions of yen For the years ended March 31, 2009 2010 2011 2012 2013 2014 Ordinary revenues ¥ 860,323 ¥ 978,991 ¥1,002,201 ¥1,078,070 ¥1,259,041 ¥1,319,766 Ordinary profi t 34,253 84,373 76,860 74,625 79,252 76,136 Net income 30,722 48,126 41,716 32,812 45,064 40,504 Comprehensive income — 71,066 31,963 60,376 96,225 44,794 As of March 31, Total assets 5,313,677 6,001,088 6,597,140 7,241,414 8,096,164 8,841,382 Net assets 204,897 269,439 294,877 347,800 435,444 467,050 Consolidated capital adequacy ratio (Domestic criteria) (Note 2) 13.32% 12.05% 10.96% 10.14% 9.88% 12.02% Consolidated solvency margin ratio (Note 3) — — — 1,380.3% 1,520.6% 1,563.8% Sony Life (Non-consolidated) For the years ended March 31, Ordinary revenues ¥ 765,910 ¥ 881,798 ¥ 900,091 ¥ 967,400 ¥1,142,274 ¥1,197,109 Ordinary profi t 32,409 80,099 73,176 69,436 74,659 69,205 Net income 33,783 46,138 40,220 31,426 42,444 37,063 As of March 31, Total assets 3,810,929 4,286,540 4,723,332 5,222,846 5,952,750 6,624,903 Net assets 140,730 191,312 215,387 264,836 342,333 369,230 Non-consolidated solvency margin ratio (Note 4) 2,060.5% 2,637.3% 2,900.1% 1,980.4% 2,281.8% 2,358.7% Sony Assurance For the years ended March 31, Ordinary revenues ¥ 61,882 ¥ 68,174 ¥ 74,166 ¥ 80,096 ¥ 84,711 ¥ 89,864 Ordinary profi t 2,178 2,565 2,144 2,859 2,371 3,003 Net income (loss) (1,556) 1,604 1,297 1,299 1,454 1,664 As of March 31, Total assets 86,698 98,340 109,382 118,612 127,421 142,714 Net assets 13,678 15,482 16,772 18,009 19,934 21,418 Non-consolidated solvency margin ratio (Note 4) 993.0% 1,018.5% 981.4% 557.8% 504.2% 527.6% Sony Bank (Non-consolidated) For the years ended March 31, Ordinary revenues ¥ 33,361 ¥ 30,500 ¥ 29,521 ¥ 30,075 ¥ 31,351 ¥ 33,303 Ordinary profi t 414 2,930 3,377 4,033 4,282 5,845 Net income (loss) (710) 1,646 2,054 2,340 879 3,585 As of March 31, Total assets 1,411,956 1,612,186 1,761,830 1,890,503 2,005,081 2,056,704 Net assets 46,264 58,989 59,971 62,796 67,811 72,774 Non-consolidated capital adequacy ratio (Domestic criteria) (Note 5) 13.37% 12.09% 10.84% 11.58% 11.98% 11.72% Notes: 1. All fi gures have been truncated to the nearest million yen. 2. SFH has calculated the consolidated capital adequacy ratio (domestic criteria) based on formulas stipulated in FSA Notifi cation No. 20 (2006), which is based on Article 52-25 of the Banking Act of Japan. Calculations do not include Sony Life, Sony Life Insurance (Philippines), Sony Assurance, AEGON Sony Life Insurance, or SA Reinsurance within the scope of consolidation until March 31, 2012. From March 31, 2013, the scope of consolidation for calculation purposes does not include Sony Life, Sony Assurance, AEGON Sony Life Insurance or SA Reinsurance. SFH applied FSA Notifi cation No. 79 (2008) until March 31, 2012, and applied FSA Notifi cation No. 56 (2012) on March 31, 2013. From March 31, 2014, SFH applied FSA Notifi cation No. 6 (2013) and FSA Notifi cation No. 7 (2014). 3. SFH has calculated the consolidated solvency margin ratio based on the stipulations of Article 210, Paragraph 11-3 and Paragraph 11-4 of the Ordinance of Enforcement of the Insurance Business Act of Japan, and FSA Notifi cation No. 23 (2011). 4. Sony Life and Sony Assurance have applied the previous standards to the calculation of the non-consolidated solvency margin ratio until March 31, 2011, while applying the current standards from March 31, 2012. 5. Sony Bank has calculated the non-consolidated capital adequacy ratio (domestic criteria) based on FSA Notifi cation No. 19 (2006), which establishes stan- dards based on Article 14-2 of the Banking Act of Japan for determining the capital adequacy of a bank in light of the assets held by the bank. Until March 31, 2012, the Bank applied FSA Notifi cation No. 79 (2008), and applied FSA Notifi cation No. 56 (2012) on March 31, 2013. From March 31, 2014, the Bank applied FSA Notifi cation No. 6 (2013) and FSA Notifi cation No.