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2 0 1 7Annual Report

This is an English-language version of the original Japanese-language disclosure of AEGON Sony Life Insurance Co., Ltd. published in July 2017.

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AEGON Sony Life Insurance Co., Ltd.

OUR CREDO“The SPIRIT of AEGON Sony Life”

Our pledge to customers

By providing high-quality consulting services we place our customers’ needs fi rst, while always staying loyal to the central purpose of life enriching annuities. In order to earn our customers’ trust we will adhere to the clear guidelines outlined in our compliance programs. We vow to continuously improve our operations to ensure that we are creating long-term value, while also supporting our growth ambitions as a company.

Our pledge to business partners

We will do our utmost to invest in our relationships and develop trust and sustainable alliances with our business partners. We vow to create ideal partnerships that allow us to think, synergize and progress together.

Our pledge to ourselves

We will pursue our shared ambi-tions and ideals in the spirit of mutual respect. We take great pride in and are committed to our open and dynamic corporate culture. Most importantly, we vow to constantly remain agile and passionate about fostering a culture of innovation andentrepreneurship in order to realize our full potential.

We are determined to achieve our dream of broadly sharing “life enriching annuities” with all.

Current and future employees of AEGON Sony Life Insurance Co., Ltd.

“We aspire to help create a society in which people can feel really happy about living a long life.”

We are one team motivated to realize this common dream. Our mission is to assist our customers in

achieving fi nancial security, comfort and ultimately peace of mind. We endeavor to do this with the help

of our business partners who share our same core values and determined spirit. In keeping our long-term

promises to every customer, and by fi lling the gap between what social pension systems provide and what

people truly need to retire with dignity, we enable people to live long and happy lives.

“Starting today, we commit ourselves to transforming the traditional annuity into a truly life enriching annuity.”

In order to fulfi ll our mission, we are committed to transforming the traditional annuity into a life

enriching annuity. A “life enriching annuity” is one that meets our customers’ expectations throughout

their lifetime. Moreover, it has the potential to help our customers reach their fi nancial goals at diff erent

stages of life, enabling them to achieve their dreams while having a sense of security about their future.

We are confi dent that by making available life enriching annuities we are helping to create a stronger

sense of fi nancial security for society; making it possible for those who rely on us to experience greater

peace of mind.

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1AEGON Sony Life Insurance Co., Ltd.

Message from Management

Shareholders

Internal Control System

Risk Management Structure

Social Contribution Activities

Corporate Governance

Establishment of Customer Oriented

Business Conduct Policy

Initiatives to Improve Customer Satisfaction

Status of New Product Development and

Product Lineup

Information Disclosure

Status of Distributors

Customer Satisfaction

Contents

FY2016 Overview

Summary of Selected Performance Indices

FY2016 Results

Business Results

Corporate and

Financial Data

4

5

6

10

10

12

14

15

16

16

18

19

8

2

Corporate and Financial Data

Note: This is an English-language version of the original Japanese-language disclosure of AEGON Sony Life Insurance Co., Ltd. published in July 2017. This condensed

English-language version was prepared by AEGON Sony Life Insurance Co., Ltd. solely for the convenience of non-Japanese readers. If there are any discrepancies

with the Japanese version please note the original Japanese version is the offi cial disclosure of AEGON Sony Life Insurance Co., Ltd.

Published October 2017 (Note: Original Japanese version published July 2017)

AEGON Sony Life Insurance Co., Ltd.

Corporate Planning Division, Executive Offi ce

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2 AEGON Sony Life Insurance Co., Ltd.

Thank you very much for your continued choice and

patronage of Aegon Sony Life. Aegon Sony Life is a

life insurance company founded in December 2009 as

a joint venture between Sony Life and Aegon. Both

companies share comparable values and the aim to

leverage each other’s know-how in order to provide

solutions that can help to secure the fi nancial needs

of Japanese customers in retirement.

Aegon is a global enterprise, operating in more

than 20 countries including the Americas, Europe

and Asia, with its core businesses centered on life

insurance, pensions and asset management. Aegon

Sony Life works closely with each of its parent

companies in order to achieve its goals. Aegon

Sony Life leverages Aegon’s sophisticated know-

how of retirement products and bancassurance and

the quality services of Sony Life, which have been

obtained through consulting-based sales focusing

on the life plans of customers. This knowledge and

experience enables the Company to provide

innovative, high-quality products and services to its

customers in Japan.

“We commit ourselves to transforming

the traditional annuity into a truly life

enriching annuity.”

Japanese society is facing pension challenges,

with a rapidly aging society, declining birth rate,

increased longevity and declining government

pension subsidies. These factors place a strain on

the country’s resources and particularly infl uence

postretirement fi nancial needs making it all the

more important for individuals to prepare their own

fi nancial protection for their post-retirement lives.

Frans F. F. de Beaufort Executive Chairman,

Representative Director

Akira NishinoPresident,

Representative Director

Message from Management

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Aegon Sony Life is committed to help

people take responsibility for their

fi nancial future and this has never

been more important than today.

People are living longer than ever, which is a case

for celebration. We aspire to help create a society in

which people can feel really happy about living a

long life. We are devoted to being an expert in

annuity products and, as mentioned in its Credo

since Aegon Sony Life started its business in 2009,

“Transforming the traditional annuity into a truly life

enriching annuity”. Aegon Sony Life intends to do

this by providing customers with high-quality

fi nancial products and services that can help them

realize their dreams. Aegon Sony Life strives to

contribute to a society where as many customers

as possible can be freed of post-retirement-related

anxieties and can feel the joy in living a long life.

We appreciate your business and ask for your

continued support.

July 2017

Management PhilosophyAegon Sony Life values its customers, business partners, employees, shareholders and the society in

which it operates and offers high-quality annuities and services as an expert in annuities, with the aim of

becoming the company most trusted by customers

Management Policy▶ Develop expertise in the retirement benefi ts market by offering annuities and services that address

customers’ various pension needs.

▶ Manage with the innovation to address newly emerging customer needs by understanding changes in

the environment and by continually and aggressively tackling the challenge of providing high-quality

services that satisfy customers.

▶ Respect employees’ individual characteristics and maintain a resilient and vigorous organization in which

they can optimize their capabilities and aptitudes.

▶ Fulfi ll the Company’s corporate social responsibilities by accurately managing various risks and conducting

sound management in compliance with laws and regulations.

Akira NishinoPresident, Representative Director

Frans F. F. de Beaufort Executive Chairman, Representative Director

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FY2016 Overview

Economic Environment

The fi rst half of the fi scal year 2016 can be characterized by low interest rates. The Bank of Japan introduced a

negative policy rate in January of 2016 and in addition, the UK decided on leaving the European Union, leading to

new risk-off attitudes. Interest rates, however, recovered slowly mainly due rising interest rates in the US as well

as due to a rise of the stock market in Japan. As a result, the long term interest rate (10 year JGB yield),

recovered into the positive at the end of the fi scal year and the Nikkei index increased compared to the end of

FY2015.

Operating Results

Aegon Sony Life has been working to provide customer-centric services, improve its fi nancial strength and its

internal control management in order to achieve the sustainable growth as a trusted company that customers

choose. The Company successfully developed and launched its fi rst foreign currency (USD and AUD)

denominated product with minimum guarantee of the single premium amount in May 2016. In addition, the

Company successfully released its second foreign currency (USD) denominated product with guaranteed

withdrawal benefi t in October of 2016. The Company increased its product line-up to better match customer

needs and Aegon Sony Life is also working towards developing a variety of annuity products in FY2017. The

Company is committed to provide a wider range of solutions in the future that the customer can chose from. At

last, the company is focusing on digitization in order to improve the service provided to its customers and

business partners and to improve its internal effi ciency.

Regarding marketing, the Company extended its detailed training activities for agencies in the area of sales,

products and after-sale follow up. As a result, partnerships with new fi nancial institutions increased to 29 partners

by the end of FY2016. Aegon Sony Life will continue to establish new partnerships in order to provide people with

fi nancial security all over Japan.

In a challenging market environment, the Company continued to operate under the slogan of “Transforming

the traditional annuity into a truly life enriching annuity”. In combination with the focus on consulting sales, in force

annuities increased 12.9 percent to ¥501,784 million representing 85,942 policies. The Solvency Margin Ratio of

the company ended at 986.7%, exceeding the regulatory criteria for fi nancial soundness which is set at 200%,

demonstrating the company’s stability and ability to stay solvent.

With the FSA communicating its principles of Fiduciary Duty to the public, Aegon Sony Life feels encouraged

to continue its current path. The customer has always been in the heart of everything the Company does. In order

to further promote customer centricity, the Company established its customer oriented business conduct policy,

which is a refl ection of the Company`s management philosophy and Credo. With initiatives in FY2016 such as

releasing movies that explain products and increasingly making customers aware of the internet service, the

Company is dedicated and committed to fulfi ll its fi duciary duty to its customers.

Business Results

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(Millions of yen, unless otherwise noted)

FY2012 FY2013 FY2014 FY2015 FY2016

New business –

individual annuities (Note 1) 51,175 167,547 163,254 71,593 70,814

Ordinary revenues 58,689 175,987 332,614 136,411 124,700

Ordinary profi t (loss) (2,407) (3,418) (5,107) (2,901) (4,797)

Fundamental profi t (loss) (1,947) (1,908) (3,612) (2,875) (4,996)

Net income (loss) (2,509) (3,495) (5,495) (3,292) (4,497)

Share capital 10,000 12,000 13,000 13,250 15,000

Outstanding shares (thousand shares) 20,000 24,000 26,000 26,500 30,000

Total assets 93,470 250,603 403,246 432,925 478,199

Assets in separate account (Note 2) 75,054 227,173 378,763 416,707 464,242

Policy reserves 77,789 232,526 387,934 423,186 469,388

Loans — — — — —

Securities 73,514 224,659 375,020 407,611 458,628

Solvency margin ratio 8,034.5% 4,789.7% 3,033.5% 1,111.7% 986.7%

Number of employees 123 139 161 166 172

Insurance in force (Note 3) 76,155 236,482 390,423 444,280 501,784

Individual life insurance — — — — —

Individual annuities 76,155 236,482 390,423 444,280 501,784

Group life insurance — — — — —

Group pension in force — — — — —

Notes: 1. New business – individual annuities represents annuity resources at the start of annuity payments.

2. Assets in separate account: net amount after deducting receivables coming from the general account based on the

Insurance Business Law of Japan.

3. Insurance in force is the total of the following:

(i) Policies during accumulation period: the present value of the annuities at the time of annuity payment

(ii) Policies in payout status: policy reserves

Summary of Selected Performance Indices

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Definition Overview of FY2016

Ordinary profi t (loss)

¥(4,797) million

Fundamental profi t (loss)

¥(4,996) million

Net income (loss)

¥(4,497) million

Definition Overview of FY2016 Face Amount Number of New Policies

FY2016 Results

Policy Performance Indices

Ordinary revenues (recurring revenues generated by

operating activities) less ordinary expenses. Loss occurs

when ordinary expenses exceed ordinary revenues.

Indicates core earnings. Corresponds to operating income

for non-fi nancial corporations. The sum of income and

expenses from insurance operations, such as premium

income, claims and benefi ts, and operating expenses,

plus investment income, primarily interest and dividends.

Income before income taxes less current and deferred

income taxes. Indicates net income or loss resulting

from all corporate activity.

Aegon Sony Life Insurance

began operating in

FY2009. Insuffi cient

insurance in force has

resulted in an ordinary

loss, fundamental loss and

net loss.

Insurance in force

¥501,784 million

85,942 policies

2014 2015 2016(FY)

63,593

26,834

85,942

73,403

163,254

71,593 11,851

Policies sold during

the fi scal year.

New business

amount was 98.9%

and new number of

policies was 120.3%

compared to

FY2015.

Total policies in

force at the end of

the fi scal year.

Insurance in force

was 112.9% and

total number of

policies was

117.1% compared

to FY2015.

New business

¥70,814 million

14,261 policies

2014 2016

(Millions of yen)

(FY)

70,814

2015

26,834163,254163,254163,254

71,59371,59371,593 11,851

2014 2016(FY)

2015

26,83426,83426,834

14,261

163,254

71,593 11,85111,85111,851

2014 2016

(Millions of yen)

(FY)2015

390,423

501,784

26,834

444,280

163,254

71,593 11,851

Profitability Indices

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Definition

Definition

Overview of FY2016 3-Year Graph

Solvency margin ratio

986.7%

Share capital (including capital reserves)

30,000 million

An index used by regulators to judge the ability of an insurance company to pay claims

in the event of risks that exceed typical assumptions. Calculated as total solvency

margin (internal reserves such as net assets plus items including net unrealized gains

on available-for-sale securities) divided by total quantifi ed risks.

A solvency margin of 200 percent or higher is one standard for soundness.

An index of funding for operations. The Insurance Business Law stipulates that an

insurance company must have share capital of ¥1,000 million or more.

Assets in

separate account

¥464,242 million

Policy reserves

¥469,388 million

Securities

¥458,628 million

Total assets

¥478,199 million

The total of cash and

deposits, call loans, mon-

etary trusts, securities,

tangible and intangible

fi xed assets, and other

assets.

Total assets as of March 31,

2017 increased ¥45,273

million compared with

FY2015, largely because of

the increase in insurance in

force.

An account managed

separately for individual

variable annuities in order

to refl ect investment

results directly in claim

payments.

Assets in separate

account as of March 31,



FY2015 largely because of

the increase in insurance

in force.

Reserves required by the

Insurance Business Law

for each type of insurance

to provide for future pay-

ments of claims, annuities

and other benefi ts to

customers.

Policy reserves as of

March 31, 2017 increased

¥46,201 million compared

with FY2015 largely

because of the increase in

insurance in force.

Securities as of March 31,



FY2015 largely because of

the increase in insurance

in force.

Core part of the insurance

company’s investment

assets. This includes

government bonds, corpo-

rate bonds, stocks, foreign

securities, investment

trusts and other securities.

2014 2015 2016

(Millions of yen)

(FY)

26,834

403,246

478,199432,925

163,254

71,593 11,851

2014 2016

(Millions of yen)

2015(FY)

464,242416,707

378,763

26,834163,254

71,593 11,851

2014 2016

(Millions of yen)

2015(FY)

469,388423,186

387,934

26,834163,254

71,593 11,851

2014 2015 2016

(Millions of yen)

375,020

(FY)

26,834

458,628407,611

163,254

71,593 11,851

Asset and Liability Indices

Soundness Indices

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Sony Life

100% owned

100% owned

100% owned

100% owned

100% owned

50% owned

50% owned

Lifecare Design

57% owned

100% owned

AEGON Sony Life Insurance

SA Reinsurance

Sony Payment Services

Consolidated subsidiaries

Equity-method subsidiaries

SmartLink Network Hong Kong

Life Insurance Business

Non-Life Insurance Business

Banking Business

Nursing Care Business

The Sony Financial Group is a comprehensive financial services group comprising Sony Financial

Holdings Inc. and subsidiaries Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony Bank Inc. and

other Group companies.

Sony Financial Group

Sony Life’s mission is to work for customers’ fi nancial security and stability by offering optimal life insurance

products and high-quality services. Its lifeplanners and partners (soliciting agencies) consult with each

customer individually to optimize fi nancial security. As a member of the Sony Financial Holdings Group, Sony

Life aims to use strong synergies with Group companies to provide fi nancial services of the highest quality. In

the annuity market, Sony Life and Aegon of the Netherlands each provided 50 percent of the equity capital to

establish Aegon Sony Life as a company specializing in individual annuities. Lifeplanners began selling the

Company’s variable annuities in December 2009, which broadened their product line-up, thus enabling them

to provide greater service and fi nancial security throughout their customers’ lives.

Corporate Profi le (As of March 31, 2017)

Common stock: ¥70 billion

Number of employees: 7,865 (including 4,933 Lifeplanners)

Total assets: ¥8,873.6 billion

Aegon Sony Life is a joint venture between Sony Life and Aegon.

Shareholders

(As of July, 2017)

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Aegon

Headquartered in The Hague, the Netherlands, Aegon is one of the world’s leading fi nancial services organizations,

providing life insurance, pensions and asset management. Aegon’s history dates back to the mid-1800s,

when two civil servants helped provide funds for people to bury their loved ones with dignity. More than 170

years on, the customers remain at the heart of everything we do.

Corporate Profi le (As of December 31, 2016)

Established Capital: € 8.193 billion

Number of Employees: over 29,000

Total Assets: € 426 billion

Managed Assets: € 743 billion

Headquarters: The Hague, The Netherlands

Creating Meaningful Connections2016 was a year full of achievements and change for Aegon. The operational and fi nancial successes are

ultimately the result of customers placing their trust in Aegon, and Aegon is proud that it’s helping millions

of people achieve a lifetime of fi nancial security.

Aegon focuses on developing a life-long relationship with its customers so that it can serve their fi nancial

needs at all the major fi nancial junctures in their lives; rather than on a one-off basis. In order to accomplish

this, Aegon needs to get much closer to its customers and connect with them how and when they wish. To

this end, Aegon will step up its work to provide guidance and advice to customers and accelerate investments

in digital solutions.

Aegon is well-positioned to take advantage of the many opportunities in its markets by connecting with

ever more customers and meeting their needs in a smooth and seamless way across their lifetime. This

gives Aegon confi dence it will achieve its strategic and fi nancial objectives, and also create long-term value

for customers and therefore shareholders alike.

Raising AwarenessIn developed countries, the proportion of the population aged 60-plus has increased from 12% in 1950 to

22% in 2010, and will increase to 32% by 2050. Children born in high-income countries today can expect

to live to see their 100th birthday, and life expectancy in low and middle-income countries is on the rise

thanks to poverty alleviation, improved nutrition and medical science. As a result, the need for long-term

fi nancial security across the world can only grow.

This key demographic trend of aging, frequently cited by global researchers, is attributed to healthcare

advancements, birth rate decline, and poverty alleviation. For over a decade, Aegon has highlighted the

impact longevity will have on society and individuals who, without adequate preparation, will outlive their

money. In addition to publishing its annual Aegon Retirement Readiness Survey and a number of other

consumer and healthcare studies, research and pulse checks, Aegon draws together research on aging

and retirement from Europe, the Americas, and Asia through the

Aegon Center for Longevity and Retirement (ACLR). The Center

collaborates with the US-based Transamerica* Institute, a

non-profit private foundation, which includes the

Transamerica Center for Retirement Studies and the

Transamerica Center for Health Studies, based in Los

Angeles, California.

* In the United States, Aegon mainly operates under the Transamerica brand

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Aegon Sony Life defi nes customer comments, complaints, requests for assistance, opinions and disputes as follows:

● Customer comments are requests made to the Company on products, service content, sales activities and so on concerning annuities, etc. (Life insurance duties provided in Article 2 of the Insurance Business Law.)

● Complaints are expressions of dissatisfaction among customer comments received.

● Requests for assistance and opinions are comments without expressions of dissatisfaction among customer comments received.

● Disputes are, among complaints, those which have not been resolved in spite of the fact that the Company has responded and taken actions based on facts in good faith and are elevated to an external body, etc. [i.e. A body such as a designated ADR (Alternative Dispute Resolution) body that resolves complaints and disputes or other third-party organizations for resolution]. (Operational Policy)

Ever since the business inception of December 2009, the Company aims to facilitate a lifetime of fi nancial security

under the slogan of “Transforming the traditional annuity into a truly life enriching annuity” and through stating that

“We aspire to help create a society in which people can feel really happy about living a long life”. In order to truly

commit to these words, the Company has established its Credo (“The Spirit of AEGON Sony Life”) with all its

employees in 2012.

In order to clarify and further promote ASLIC’s customer centricity, which is also embedded into the Company`s

management philosophy and Credo, the Company established its “Customer Oriented Business Conduct Policy”.

This was inspired by “The principle on Customer Oriented Business Conduct”, which was published by the FSA in

March of 2017.

The details of the “Customer Oriented Business Conduct Policy” and the initiatives that the Company takes in

the context of this policy are published on the corporate homepage.

Customer Feedback System

Under the management philosophy of aiming to become the company most trusted by customers, Aegon Sony

Life has formulated an operational policy for handling customer feedback that involves sincerely listening and

making every effort to improve services.

The Company collects and analyzes customer feedback at its Customer Relation Management Section under

the Sales Management Division and promotes operational improvements to strengthen relations with customers

and raise their overall satisfaction.

For issues with a particularly high degree of urgency or importance, information is shared and deliberations on

improvement measures are held by the Customer Relations Committee, which was established to make

appropriate and strategic management decisions. The results of the discussions are either reported to or

discussed in the Management Committee.

The Customer Relations Forum, established under the Customer Relations Committee, coordinates initiatives

to improve operations with and between departments.

The Customer Complaints Offi ce is dedicated to appropriately and promptly respond to complaints. It strives

to understand the customer, to analyze the complaint the Company receives and to prevent recurrence.

Initiatives to Improve Customer Satisfaction

Establishment of Customer Oriented Business Conduct Policy

Customer Satisfaction

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Cu

sto

me

r S

atis

fac

tion

Operational Policy for Handling Customer Comments● The Company shall strive to listen and swiftly respond to customer comments in good faith and with integrity to resolve

any issues in a manner that is satisfactory to customers and improve the Company’s business practices based on customer comments.

● The Company shall conclude a basic contract for executing procedures with a designated ADR body pertinent to Article 105-2 of the Insurance Business Law and observe the regulations provided by a designated ADR body and various rules set forth in such regulations.

● The Company shall pay attention to the characteristics of customers in handling customer comments, provide explanation on how the comments are handled where necessary and introduce a body for resolving complaints and disputes, such as a designated ADR body, when requested by a customer.

Third-party Organizations

Solicitation Agencies

Improved operations/Increased customer satisfaction

Customer feedback

Compliance CommitteeManagement Committee,

Board of DirectorsCustomer Relations Committee

Relevant Divisions

Customer Complaints Office

Customer Relations Center

Customer Relations Forum

Sales Management DivisionCustomer Relation Management Section

Sales Promotion East DivisionSales Promotion West Division

Sales Support DivisionSales Strategy Division

Compliance and Risk Management DivisionCompliance Section

Customer Relations Center

Consultation/Opinions, etc. Complaints

Customer Feedback System (As of July, 2017)

Initiatives to Incorporate Customer Feedback

Aegon Sony Life has periodically conducted customer satisfaction

surveys since its establishment in December 2009.

The Company sincerely responds to all customer feedback,

including complaints, requests for assistance and opinions that are

noted in satisfaction surveys. The Customer Relations Center then

analyzes and refl ects customer feedback in on-going improvement

initiatives.

ComplaintsWe received approx. 9,500 cases of customer feedback during FY2016, of which 868 were categorized as complaints.

A breakdown is shown in the chart below. (Cases, %)

Type

FY2014 FY2015 FY2016

Number of cases

% of totalNumber of

cases% of total

Number of cases

% of total

Insurance policy purchasing issues 316 37.7 282 24.5 238 27.3

Premium payment issues 0 0.0 0 0.0 0 0.0

Policyholder processes and dividends 288 34.3 554 48.0 437 50.2

Payment of claims and benefi ts 30 3.6 24 2.1 37 4.6

Other 205 24.4 293 25.4 156 17.9

Total 839 100.0 1,153 100.0 868 100.0

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Operational Improvement Examples

Aegon Sony Life implemented the following operational improvements based on customer feedback.

Customer Feedback Improvement

FY2015

It is unclear how the fund works and how the performance increases.

Uploaded the FAQ with answers on our homepage.

Unclear how tax regulation work during investment gain or surrender procedure.

Revised initial document and clarifi ed these items as part of information we send to customers.

FY2016

No clear image of Sony Life Aegon.Not knowing the availability of the internet service.

Executed a gift campaign in order to make customers familiar with the internet service and to increase interaction with the Company. (Campaign from October 2016 - March 2017)

Details of the product unclear as time passes and customers tend to not remember the details clearly

Released a product movie on the foreign dominated "Double Account Global" product. In the movie, several characters interact in order to clarify the specifi cs of the product.

Introduction of Net Promoter Score (NPS)

We introduced the measurement of NPS to improve customer loyalty we are working hard to engage our customers

with relevant information, advice, and products and services to improve their familiarity and their experience with us.

NPS is part of our customer loyalty efforts and is measured through our annually customer survey. We aim for high

customer satisfaction and recommendation as part of our life-enriching annuity concept.

Note: Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

Alternative Dispute Resolution Body

Aegon Sony Life handles complaints and disputes that may arise in the customer relationship in accordance with

Article 105-2 of the Insurance Business Law. It has concluded a Basic Contract for the Implementation of Dispute

Resolution Procedures with The Life Insurance Association of Japan, a designated alternative dispute resolution (ADR)

body as defi ned by Article 2-28 of the Insurance Business Law.

The Life Insurance Consultation Center of The Life Insurance Association of Japan handles various consultations,

inquiries and complaints regarding life insurance via phone, mail and visits (not via e-mail or facsimile). Moreover, the

Center maintains offi ces throughout Japan to handle communication by phone.

The Life Insurance Consultation Center

communicates complaints to the relevant life insurance

companies. In principle, if the policyholder and

insurance company are unable to resolve the

complaint within one month, the Center acts as an

ADR body that provides an arbitration committee at

the Life Insurance Consultation Center to protect the

legitimate interests of policyholders.

Contact: Life Insurance Consultation Center,

The Life Insurance Association of Japan

Shin Kokusai Building 3F, 3-4-1 MarunouchiChiyoda-ku, Tokyo 100-0005 JapanTel: +81-3-3268-2648 (overseas)Hours of operation: 9:00 – 17:00, Mon.-Fri. (Closed holidays)Website: http://www.seiho.or.jp/

Status of New Product Development

Status of New Product Development and Product Lineup

Aegon Sony Life energetically develops new products in order to

respond to various customer needs for annuities.

The Company has several types of products in its portfolio. One is a

type of insurance in which assets are managed in a separate account

during the accumulation and payout periods, and annuities are paid

throughout the life of the insured. The other is a type of insurance in which

assets are managed in a separate account during the accumulation period

and in the general account during the payout period, as payments are

made according to the type of annuity.

171006_01_SLA_2017e前半.indd 12 2017/10/10 9:31


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Product Lineup (As of July, 2017)

Variable Annuities

• • Guaranteed Lifetime Withdrawal Benefit 2011

• • Guaranteed Lifetime Withdrawal Benefit (Foreign Currency Denominated 2016)

• Guaranteed Lifetime Withdrawal Benefi t 2011 is JPY denominated while the

Guaranteed Lifetime Withdrawal Benefi t (Foreign Currency Denominated

2016 ) is USD denominated

• Guarantees a minimum lifetime withdrawal benefi t and a minimum death

benefi t equal to the single premium.

• Has a function that refl ects the results of management of the separate

account in the annuity amount and a function that increases the annuity

amount by a fi xed percentage during the accumulation period regardless of

asset management results.

Guaranteed Lifetime Withdrawal Benefi t (GLWB)A type of insurance in which assets are managed in a separate account during the accumulation and payout periods, and annuities are paid throughout the life of the insured, starting as early as one year after the contract date.

• • Guaranteed Minimum Accumulation Benefit 2015 / Guaranteed Minimum Accumulation Benefit 2015 (Foreign Currency Denominated)

• Guaranteed Minimum Accumulation Benefi t is a JPY denominated product

and the Foreign Currency Denominated product is in USD or AUD .

• Guarantees a minimum accumulation benefi t and a minimum death benefi t

equal to the single premium.

• Between the contract date and three months prior to the start of payments,

when the value of the accumulated fund exceeds the single premium by 5

percent, customers may choose either to receive the asset management

results in cash or to continue management in another separate account.

• • Variable Annuity with Currency Choices (Guaranteed Minimum Death Benefit 2016) Type I

• The Variable Annuity with Currency Choices (Guaranteed Minimum Death Benefi t

2016) Type I allows customers to select a currency (JPY, USD, AUD).

• The equivalent amount of basic benefi t (single premium) is guaranteed as a

death benefi t during the deferral period.

Guaranteed Minimum Accumulation Benefi t (GMAB) A type of insurance in which assets are managed in a separate account during the accumulation period and in the general account during the payout period, as payments are made according to the type of annuity. Guarantees a fi xed minimum accumulation benefi t and death benefi t regardless of the results of management of the separate account.

Survivor Annuity Payment Policy This rider adds the payment of a death benefi t or lump-sum death payment as an annuity.

Authorized Claim PolicyWhen annuity recipient cannot claim the annuity or lump-sum death benefi t due to company circumstances, a pre-

authorized claimant is allowed to receive the annuity or lump-sum death benefi t on behalf of the recipient.

JPY Premium Payment Policy Guaranteed Minimum Accumulation Benefi t 2015 (Foreign Currency Denominated) single premium can be paid in JPY.

JPY Payout PolicyGuaranteed Minimum Accumulation Benefi t 2015 (Foreign Currency Denominated) annuity or lump-sum death benefi t

can be received in JPY.

JPY Annuity Payout PolicyGuaranteed Lifetime Withdrawal Benefi t (Foreign Currency Denominated 2016) payouts and lump-sum death benefi t

can be received in JPY.

Exchange Rate Target Payment

Policy

When the contract of the Guaranteed Minimum Accumulation Benefi t 2015 (Foreign Currency Denominated) is option

1 and the value of the accumulated fund exceeds the single premium by 5 percent, the asset management result can

be received in cash in accordance with the exchange rate.

Changing Payout Date PolicyWhen Variable Annuity with Currency Choices (Guaranteed Minimum Death Benefi t 2016) Type I is USD or AUD

denominated, annuity payout date can be changed based on preferred currency rate.

Riders

Notes: 1. Product information is provided to explain Aegon Sony Life’s business, not as a solicitation to purchase the Company’s products. 2. Please confirm details in the product pamphlets, pre-contract documentation (policy provisions and policy guide), contract articles or other relevant

documentation. (Japanese language only.)

171006_01_SLA_2017e前半.indd 13 2017/10/10 9:31


Provision of Information on Products, Contract Details and Demerits

Company Information

When a customer is considering a contract, Aegon Sony Life provides information on its demerits as well as its merits,

in addition to the product’s structure and features. This is done so that the customer can make an informed purchase

decision based on an accurate understanding and their particular suitability. The Company also provides appropriate

information after the contract signing to offer value-add services.

Information Disclosure

● Product pamphlet

● Pre-contract documentation(Contract summary/Notifi cations)

● Product brochure

● Policy provisions/Policy guide

● Guide to separate account

● Confi rmation of intent and conformity, etc.

Before Contract Signing

Pursuant to Article 111 of the

Insurance Business Law, the

Company issues disclosure

materials (documents related

to operating results and the

current status of assets) once

a year to give customers a

broad understanding of

management conditions and

other matters. The materials

are available at major

agencies and elsewhere throughout Japan and on

the Company’s website.

In addition to introducing the

Company’s profi le, the website

contains annual reports, the Aegon

Retirement Readiness Survey and

other information.

(https://www.aegonsonylife.co.jp/

english/)

Contains a Company overview and other

information.

Disclosure Materials Website

Corporate Profi le

Notifi cation of Contract Status

A “Notifi cation of Contract Status” is

issued four times a year to confi rm

contract details, status of the separate

account and details of the annuity.

Current Status of Separate Account

(Account Statement)

The current status of the separate

account is issued once a year.

After Contract Signing

Internet Service

Details of the contract and status of the

separate account can be checked on

the Internet.

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Overview of Education and Training at Agencies

Since the start of operations in December 2009, Aegon Sony Life has been working to increase its distribution

agencies, and has alliances with 31 fi nancial institutions as of July 1, 2017. The products that are offered and the

fi nancial institutions that distribute them as agencies are as follows:

Products Offered and Financial Institution Agencies (As of July, 2017)

Offi cial Product Name Name of Product for Sale Financial Institution Agencies

Variable Annuity (Guaranteed

Minimum Accumulation Benefi t 2015)

“W Account IV”

Sony Life Insurance Co., Ltd.; Kansai Urban Banking

Corporation; The Chiba Kogyo Bank Ltd.; The Minato Bank,

Ltd.; The Tokyo Star Bank, Limited; The Ashikaga Bank,

Ltd.; Hokuto Bank, Ltd.; North Pacifi c Bank, Ltd.; The Mie

Bank, Ltd.; The Shizuoka Bank, Ltd.; Resona Bank, Ltd.;

Saitama Resona Bank, Ltd.; The Kinki Osaka Bank, Limited;

Michinoku Bank Co., Ltd.; Kirayaka Bank, Ltd.; The Toho

Bank, Ltd.; Amagasaki Shinkin Bank; The Bank of Kochi,Ltd.;

The Bank of Nagoya, Ltd.; Ogaki Kyoritsu bank Ltd.

Guaranteed MinimumAccumulation Benefi t

(2015 Foreign Currency Denominated)

“Catch Point IV” Sumitomo Mitsui Banking Corporation

“W Account Global”

Amagasaki Shinkin Bank; The Senshu Ikeda Bank, Ltd.;

Ogaki Kyoritsu bank. Ltd.; Kansai Urban Banking

Corporation; Kirayaka Bank, Ltd.; The Bank of Kochi,Ltd.;

The Shizuoka Bank, Ltd.; The Tajima Bank,Ltd.; The

Tokyo Star Bank, Limited; The Toho Bank, Ltd.; The Bank

of Nagoya, Ltd.; North Pacific Bank,Ltd.

“Global Gift” Sony Life Insurance Co., Ltd.

Variable Annuity (Guaranteed Lifetime

Withdrawal Benefi t 2011)

“Jinseinenkin

Sutekini Nagaiki”Japan Post Bank

"Winning Road V" Amagasaki Shinkin Bank; Sony Life Insurance Co., Ltd.

Guaranteed Lifetime Withdrawal Benefi t (Foreign

Currency Denominated 2016)

"Winning Road

Global"Sony Life Insurance Co., Ltd.

Variable Annuity with Currency Choices

(Guaranteed Minimum Death Benefi t 2016) Type I

"Fantastic Life" Sony Life Insurance Co., Ltd.


Aegon Sony Life is mindful of the importance of support for building relationships of trust between sales staff at

agencies and customers and therefore offers numerous training programs. Specifi cally, the Company has prepared

various training programs that have been developed based on K.A.S.H. (Knowledge, Attitude, Skill, Habit)

Training for sales agents covers not only instruction about products but also sales methods. Moreover, in

addition to gaining the skills necessary for process-based consulting sales and sales communication the

Company provides instruction on the usage of the newly developed public pension calculation tool (Nenkin-

kun) and the life planning tool (second life supporter).

Detailed support for these activities is provided by the Company's wholesales. The Company conducts

group training, one-on-one training for sales agents in the field at branch offices and elsewhere, and small-

group training sessions.

In addition to instruction on products, overall finance and the Japanese social security system, marketing

planners conduct various types of training for the acquisition of skills in presentation, coaching and facilitation.

171006_01_SLA_2017e前半.indd 15 2017/10/10 9:31


Aegon Sony Life employs an internal control system created to ensure appropriate operations. This system follows

the basic policies outlined by the Board of Directors for establishing such a system.

Internal Control System

Corporate Governance

Basic Policy


Aegon Sony Life has an interdivisional, company-wide risk management structure for dealing with operating and

management risks. The Company uses appropriate risk management to ensure that operations are solid and

reliable in order to protect the interests of policyholders and other stakeholders.

Aegon Sony Life strengthens its risk management structure each year in order to manage risks based on the above

policy. Insurance companies must meticulously control certain risks while also comprehensively managing all risks.

The Company employs the structure outlined below for appropriate risk management that is both specifi c and yet

still comprehensive.

The Company assigns divisions responsibility for managing specifi c types of risk in order to control them appropriately.

The Risk & Capital Committee, which advises the Management Committee, governs the information regarding each type

of risk. This committee engenders horizontal, company-wide risk management by centralizing jurisdiction over collecting

information and setting policy. The Risk & Capital Committee includes the President, the Chief Actuary and the general

managers of each division responsible for risk management. The auditors and the general manager of the Internal Audit

Division also attend committee meetings to provide an appropriate check and balance.

In addition, Aegon Sony Life is working on the enhancement of its crisis management capabilities. This includes

revising its business continuity plan based on experience garnered through the Great East Japan Earthquake that

occurred in March 2011.


Risk Management Structure (As of July, 2017)

General Meeting of Shareholders

Chief Actuary

Board of Directors

Board of Auditors

Internal Audit Division

Risk & Capital Committee

Management Committee

Compliance andRisk Management Division

(Risk Management Committee)

Underwriting risk

● Actuarial Division

Asset management risk

● Investment Division

Operational risk

● Accounting Division● HR & General Affairs Division● Corporate Planning Division

● Compliance and Risk Management Division● Information Systems Division

171006_01_SLA_2017e前半.indd 16 2017/10/10 9:31


Stress Tests

Policies for Addressing Risk

Risk Risk Management Policy

Asset management risk

Given the importance of integrated asset and liability management, the Company determines asset allocation after taking issues including liability characteristics and equity capital into account. In addition, it has upgraded system checks and balances in order to ensure its effectiveness.

Underwriting risk

Insurance underwriting has a profound, long-term impact on operations. The Company therefore appropriately manages underwriting risk based on the status of its policy reserves and equity capital. In addition, it regularly verifi es the profi tability of both new and existing products.

Use of reinsurance* The Company uses reinsurance as necessary to appropriately manage underwriting risk and employs rigorous criteria for credit ratings and other factors to select reinsurance companies. The Company also regularly reconfi rms the soundness of the reinsurance companies it uses. The Company does not underwrite reinsurance.

Aegon Sony Life manages and reduces the administrative risk inherent in corporate operations to ensure they are appropriate. The Company formulates and disseminates internal rules and prepares and disseminates manuals, while conducting regular inspections and internal audits to ensure their effectiveness.

Administrative risk

Systems riskThe Company implements various measures to achieve stable operation of computer systems and prevent accidents and other problems. It has also installed backup centers at remote locations and upgraded its contingency plan.

Liquidity riskTo the degree possible, the Company prepares for unforeseeable contingencies by limiting the use of non-liquid investments in asset management and by adequately managing cash requirements including overdraft protection as necessary.

Legal riskThe Company strives to understand, practice and improve legal matters in accordance with the compliance. When risk materializes, the Company takes various response measures in order to minimize the loss.

Reputational riskThe Company strives to constantly be aware that adverse information will not spread in Japan and abroad and corresponds to such events adequately with close cooperation of divisions.

Human riskThe Company carries out appropriate human resource and labor management and strives to educate employees in such a way accidents will not arise.

Tangibleasset risk

The company strives to facilitate smooth business operations through its tangible assets and when risks arise, response adequately while minimizing the losses.

* Reinsurance entails underwriting by an insurance company of a portion of the risk during the period of a contract entered into by

another insurance company. Reinsurance enables the appropriate dispersal of the risk involved in insurance underwriting.

The Company periodically subjects its assumptions for various contingencies to stress tests. The Risk & Capital

Committee uses the test results in confi rming fi nancial stability.

Operational risks

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The Company actively participated in events hosted by the Life Insurance

Association of Japan and Sony Sendai FC. Also, the monthly cleaning activities

in the office area continuously took place. In support of the Credo’s statement,

“We aspire to help create a society in which people can

feel really happy about living a long life,” the Company

has coordinated with Aegon to conduct a survey on

preparations for retirement and post-retirement life in over

15 countries with aging societies since 2012. The results

have been published in the yearly report A Retirement

Wake-Up Call: Aegon Retirement Readiness Survey. The

Company, in order to meet expectations as a corporate

citizen, intends to continue expanding its social

contribution activities in the future. *Our Credo, “The

SPIRIT of Aegon Sony Life,” is presented on

the inside front cover.

Social Contribution Activities

Sony Sendai FC Kids Project

Global Volunteer Day

Aegon Retirement

Readiness Survey

171006_01_SLA_2017e前半.indd 18 2017/10/10 9:31

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2 0 1 7Annual Report

Corporate and Financial Data

Contents

Corporate Data 20

Corporate History 20

Organization 20

Historical Data on Share Capital 21

Total Number of Shares 21

Shares 21

Status of Major Shareholders 21

Directors and Statutory Auditors 22

Financial Condition 23

Non-Consolidated Balance Sheets 23

Non-Consolidated Statements of Income 24

Non-Consolidated Statements of Cash Flows 25

Non-Consolidated Statements of Changes

in Net Assets 26

Audit by Independent Auditors of

the Financial Statements 26

Solvency Margin Ratio 30

Market Value of Securities (Company Total) 31

Details of Ordinary Profi t (Fundamental Profi t) 32

Performance Indices 33

Overview of Performance Indices 33

Insurance-Related Indices 35

Financial Indices 37

Asset Management Indices (General Account) 41

Market Value of Securities (General Account) 48

Status of Separate Account 49

Balance of Separate Account 49

Status of Separate Account Assets for

Individual Variable Insurance and Annuities 49

Status of Individual Variable Insurance

and Annuities 52

Note: This is an English-language version of the original Japanese-language disclosure of AEGON Sony Life Insurance Co., Ltd. published in July 2017. This

condensed English-language version was prepared by AEGON Sony Life Insurance Co., Ltd. solely for the convenience of non-Japanese readers. If there

are any discrepancies with the Japanese version please note the original Japanese version is the offi cial disclosure of AEGON Sony Life Insurance Co., Ltd.

170914_01_SLA17e_1C_19-54 2.indd 19 2017/10/10 9:32


Corporate Data

Corporate History

2007 August Established AEGON Sony Life Planning Co., Ltd.

2009 August Changed company name to AEGON Sony Life Insurance Co., Ltd. Obtained license from the Japanese prime minister to engage in the life insurance business December Began operations and launched “Winning Road” and “Victory Run”

2010 February Launched “My History”

2011 January Launched “Catch Point” and “W Account” August Launched “Winning Road Ⅱ” and “W Account Ⅱ” September Launched “Catch Point Ⅱ”

2012 August Launched “With Family” October Launched “Winning Road Ⅲ”

2013 January Launched “W Account Ⅱα” September Launched “W Account Ⅱs” October Launched “W Account Ⅱ Plus”

2014 October Awarded with “Deshima Business Award 2014”

2015 October Launched “W Account III” and “Catch Point IV”

2016 February Awarded with “Shibuya Beautiful and Clean City (CSR) Award” May Launched “Global Gift” July Launched “Jinseinenkin Sutekini Nagaiki” Launched “W Account Global” October Launched “Winning Road Global” Launched “W Account IV”

2017 February Launched “Catch Point V” May Launched “Fantastic Life”

Organization (As of July 1, 2017)

Sales Promotion East Division

Sales Promotion West Division

Sales Strategy Division

Policyholder Service Division

Information System Division

Investment Division

Actuarial Division

Accounting Division

Product Development Division

Corporate Planning Division

HR & General Affairs Division

Compliance and Risk management Division

Internal Audit Division

Customer Complaints Office

Shareholders’ Meeting

Board of Auditors

Board of Directors

Compensation & Remuneration Committee

Finance Committee

Information System Committee

Investment Committee

Commendation and Disciplinary Committee

Product Development Committee

Compliance Committee

Risk & Capital Committee

Customer Relations Committee

Product Strategy Committee

Sales Strategy Committee

Management Committee

Chief Actuary

Sales Support Division

170914_01_SLA17e_1C_19-54 2.indd 20 2017/10/10 9:32

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Historical Data on Share Capital (Millions of yen)

Increase (decrease)

Date in share capital

Share capital

August 29, 2007 ¥1,000 ¥ 1,000

April 3, 2008 ¥1,000 ¥ 2,000

October 6, 2008 ¥1,000 ¥ 3,000

May 13, 2009 ¥1,000 ¥ 4,000

August 5, 2009 ¥6,000 ¥10,000

August 28, 2013 ¥1,000 ¥11,000

March 24, 2014 ¥1,000 ¥12,000

October 31, 2014 ¥1,000 ¥13,000

March 14, 2016 ¥ 250 ¥13,250

April 28, 2016 ¥ 750 ¥14,000

February 24, 2017 ¥1,000 ¥15,000

Note: Excluding capital reserves.

Total Number of Shares

Total number of shares to be issued 100,000 thousand

Total number of shares issued 30,000 thousand

Number of shareholders at the end of the period 2

Shares

1. Details of shares issued

Class Number of shares issued

Shares issued

Common stock 30,000 thousand

2. Major shareholders

Shareholder’s investment in Company Company’s investment in shareholder

Number of Shareholding Number of Shareholding shares held ratio shares held ratio

Sony Life Insurance Co., Ltd. 15,000 thousand 50% — —

Aegon International B.V. 15,000 thousand 50% — —

Status of Major Shareholders

Location of Share Description Date of

Ratio of shares, etc.

Name head offi ce capital of business establishment

held to the total number

of shares, etc.

1-9-2 Otemachi,

¥70,000

Life August 10,

Sony Life Insurance Co., Ltd. Chiyoda-ku, Tokyo, Japan

million

insurance 1979

50% business

Aegonplein 50, Aegon International B.V. 2591 TV, The Hague,

€165 Investment October 1, 50%

The Netherlands million business 1936

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Directors and Statutory Auditors (As of July 1, 2017)

Title Name

Executive Chairman, Representative Director Frans F. F. de Beaufort

President, Representative Director Akira Nishino

Director Hiroaki Kiyomiya

Director Kazuhiro Yamada

Director Tatsuo Hasegawa

Director Andrew John Byrne

Director Tom Grondin

Director Dave Paulsen

Standing Statutory Auditor Shinichiro Kohashi

Statutory Auditor Taketoshi Nonaka

Statutory Auditor Guy Wai Kai Yeung

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Non-Consolidated Balance Sheets

Financial Condition

FY2015 and FY2016 (As of March 31, 2016 and 2017)

(Millions of yen)

Assets FY2015 FY2016

Cash and deposits

Bank deposits

Securities

Foreign securities

Other securities

Tangible fi xed assets

Buildings

Due from reinsurers

Other assets

Account receivables

Prepaid expenses

Accrued income

Money on deposits

Deferred expenses under Article 113 of the Insurance Business Law of Japan

Others

Total assets

(Millions of yen)

Liabilities and Net Assets FY2015 FY2016

Policy reserves and others

Reserve for outstanding claims

Policy reserves

Due to agencies

Due to reinsurers

Other liabilities

Accrued income taxes

Account payables

Accrued expenses

Deposits received

Asset retirement obligations

Policy suspension and other suspensions

Reserves for directors’ and auditors’ retirement benefi ts

Reserves for price fl uctuations

Deferred tax liabilities

Total liabilities

Share capital

Capital surplus

Capital reserves

Retained earnings

Other retained earnings

Unappropriated retained earnings for the period

Total shareholders’ equity

Total net assets

Total liabilities and net assets

¥ 13,272

13,272

407,611

—

407,611

14

14

3,647

8,378

729

59

—

72

7,516

1

¥432,925

¥423,464

277

423,186

457

667

739

3

105

319

20

43

245

40

—

819

426,188

13,250

13,250

13,250

(19,763)

(19,763)

(19,763)

6,736

6,736

¥432,925

¥ 10,740

10,740

458,628

39,422

419,205

12

12

3,118

5,699

550

59

0

77

5,011

0

¥478,199

¥469,701

312

469,388

468

782

938

3

261

491

21

44

115

55

1

513

472,460

15,000

15,000

15,000

(24,261)

(24,261)

(24,261)

5,738

5,738

¥478,199

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Non-Consolidated Statements of Income

(Millions of yen)

FY2015 FY2016

Ordinary revenues

Premiums and others

Premiums

Reinsurance claims received

Investment income

Interest and dividends

Interest on bank deposits

Foreign exchange gain, net

Gains on separate accounts, net

Other ordinary income

Income for annuity riders

Reversal for reserves for outstanding claims

Others

Ordinary expenses

Claims and benefi ts

Annuity payments

Insurance benefi ts

Surrender payments

Other payments

Reinsurance premiums paid

Provision for policy reserves and others

Provision for reserve for outstanding claims

Provision for policy reserves

Investment expenses

Interest expenses

Losses on separate accounts, net

Operating expenses

Other ordinary expenses

Taxes other than income taxes

Depreciation

Amortization of deferred expenses under Article 113 of the Insurance Business Law of Japan

Provision for directors’ and auditors’ retirement benefi ts

Others

Ordinary profi t (loss)

Extraordinary gains

Extraordinary losses

Losses on disposal of fi xed assets

Impairment loss

Provision for reserves for price fl uctuations

Provision for reserves for policyholders’ dividends

Income (loss) before income taxes

Income taxes, current

Income taxes, deferred

Total income taxes

Net income (loss)

¥124,700

121,394

70,814

50,580

3,194

2

2

21

3,170

112

111

—

0

129,498

71,800

873

2,138

9,508

40

59,239

46,236

35

46,201

—

—

—

8,247

3,213

690

3

2,505

14

0

(4,797)

—

1

—

—

1

—

(4,799)

3

(305)

(301)

¥ (4,497)

¥136,411

136,245

71,383

64,861

0

0

0

—

—

165

25

140

0

139,312

87,122

791

2,436

12,100

126

71,667

35,252

—

35,252

6,827

0

6,827

6,649

3,461

653

287

2,505

14

0

(2,901)

—

661

0

660

—

—

(3,562)

3

(273)

(269)

¥ (3,292)

FY2015 and FY2016 (Years ended March 31, 2016 and 2017)

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Non-Consolidated Statements of Cash Flows

(Millions of yen)

FY2015 FY2016

Ⅰ Cash fl ows from operating activities:

Income (loss) before income taxes

Depreciation and amortization

Impairment loss

Increase (decrease) in reserve for outstanding claims

Increase (decrease) in policy reserve

Increase (decrease) in reserve for directors’ and auditors’ retirement benefi ts

Increase (decrease) in reserve for price fl uctuations

Interest, dividend and other income

Losses (gains) on securities

Interest expense

Losses (gains) on foreign exchange

Losses (gains) on disposal of tangible fi xed assets

Decrease (increase) in reinsurance credit

Decrease (increase) in other assets (excluding those related to investing and fi nancing activities)

Increase (decrease) due to agencies

Increase (decrease) due to reinsurance

Increase (decrease) in other liabilities (excluding those related to investing and fi nancing activities)

Other (amortization of deferred expenses under Article 113 of the Insurance Business Law of Japan)

Others

Subtotal

Interest and dividend received

Interest paid

Income taxes paid

Net cash provided by operating activities

Ⅱ Cash fl ows from investing activities:

Decrease from purchases of securities

Proceeds from sale and redemption of securities

Total of net cash used in investment transactions

[Total of net cash used in operating activities and investment transactions]

Purchases of tangible fi xed assets

Purchases of intangible fi xed assets

Net cash used in investing activities

Ⅲ Cash fl ows from fi nancing activities:

Proceeds from issuance of shares

Other

Net cash provided by fi nancing activities

Ⅳ Net increase (decrease) in cash and cash equivalents

Ⅴ Cash and cash equivalents at the beginning of the fi scal year

Ⅵ Cash and cash equivalents at the end of the fi scal year

¥ (4,799)

3

—

35

46,201

14

1

(1,388)

(1,780)

—

(21)

—

529

24

10

114

15

2,505

1,668

43,134

1,387

—

(3)

44,518

(70,708)

20,158

(50,550)

[(6,031)]

—

—

(50,550)

3,500

—

3,500

(2,531)

13,272

¥ 10,740

FY2015 and FY2016 (Years ended March 31, 2016 and 2017)

¥ (3,562)

287

660

(140)

35,252

14

—

(0)

6,827

0

—

0

(564)

(11)

(902)

99

(847)

2,505 —

39,618

0

(0)

(3)

39,614

(58,764)

18,135

(40,628)

[(1,014)]

(13)

(345)

(40,987)

500

(1)

498

(873)

14,145

¥ 13,272

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Non-Consolidated Statements of Changes in Net AssetsFY2015 and FY2016 (Years ended March 31, 2016 and 2017)

Audit by Independent Auditors of the Financial Statements

The non-consolidated balance sheets, statements of income and statements of changes in net assets, as well as the supporting

schedules of the Company, have been audited by PricewaterhouseCoopers Aarata, the independent auditors, in accordance with

Article 436, Paragraph 2, Item 1, of the Companies Act.

(Millions of yen)

FY2015

Shareholders’ equityValuation and translation

adjustments

Total net assetsShare

capital

Capital surplus Retained earnings

Total shareholders’

equity

Net unrealized gain (loss)

on available-for-sale

securities, net of taxes

Total valuation

and translation

adjust-ments

Capital reserves

Total capital surplus

Other retained earnings Total

retained earnings

Unappropri-ated retained earnings for the period

Balance at the beginning of the current period ¥13,000 ¥13,000 ¥13,000 ¥(16,470) ¥(16,470) ¥9,529 — — ¥9,529

Changes during the period

Issuance of common stock 250 250 250 500 500

Net income (loss) (3,292) (3,292) (3,292) (3,292)

Net changes of items other than shareholders’

equity — — —

Total changes during the period 250 250 250 (3,292) (3,292) (2,792) — — (2,792)

Balance at the end of the current period ¥13,250 ¥13,250 ¥13,250 ¥(19,763) ¥(19,763) ¥6,736 — — ¥6,736

(Millions of yen)

FY2016

Shareholders’ equityValuation and translation

adjustments

Total net assetsShare

capital

Capital surplus Retained earnings

Total shareholders’

equity

Net unrealized gain (loss)

on available-for-sale

securities, net of taxes

Total valuation

and translation

adjust-ments

Capital reserves

Total capital surplus

Other retained earnings Total

retained earnings

Unappropri-ated retained earnings for the period

Balance at the beginning of the current period ¥13,250 ¥13,250 ¥13,250 ¥(19,763) ¥(19,763) ¥ 6,736 — — ¥ 6,736

Changes during the period

Issuance of common stock 1,750 1,750 1,750 3,500 3,500

Net income (loss) (4,497) (4,497) (4,497) (4,497)

Net changes of items other than shareholders’

equity — — —

Total changes during the period 1,750 1,750 1,750 (4,497) (4,497) (997) — — (997)

Balance at the end of the current period ¥15,000 ¥15,000 ¥15,000 ¥(24,261) ¥(24,261) ¥ 5,738 — — ¥ 5,738

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Signifi cant Accounting Policies

1. Valuation of securities (including cash and deposits that are treated as securities and securities managed as trust assets in

monetary trusts) is as follows. Trading securities are stated at market value, and sales cost is determined by the moving-

average method. Available-for-sale securities for which market prices are available are stated at market value based on market

prices as of the closing date of the fi scal year under review, and sales cost is determined by the moving-average method.

Unrealized gains or losses on available-for-sale securities are reported as a separate component of net assets.

2. Derivatives are stated at market value.

3. Tangible fi xed assets are depreciated by the following method;

• Property and equipment

Declining-balance method (however, straight-line method is applied for buildings and accompanying facilities, fi xtures

acquired on and after April 1st 2016).

(Change in the Accounting Policy)

Upon revision of the Corporation Tax Act, we applied for the current business year, “Practical Solution on the Change in

the Depreciation Method due to the Tax Reform in 2016.” (Practical Solution Report No. 32 on June 17th 2016) and have

changed the depreciation method for buildings and accompanying facilities, fi xtures from declining balance to straight line

method.

This change does not affect our ordinary loss and net loss before tax for the accounting period.

• Lease assets

Leased assets concerning non-ownership transfer fi nance/lease transactions

Straight line method is used with lease period as the useful life and residual value at zero.

• Estimated useful lives are as follows:

Property 8-15 years

Equipment 5-15 years

4. Assets and liabilities denominated in foreign currency are translated into Japanese yen using exchange rates at the balance

sheet date.

5. (1) As preparation for losses on doubtful accounts, an allowance for doubtful accounts is calculated as follows based on the

self-assessment rule for assets and the rules for write-off and allowance.

For debt in which the debtors are legally and formally bankrupt by such measures as fi ling under the Civil Rehabilitation

Law or the Bankruptcy Law and are substantially bankrupt in terms of their business operations and for debt in which the

debtors are actually bankrupt, of which the collectible amount has remarkably decreased, the allowance amount is

calculated as the principal balance less the amounts collectible from foreclosing collateral and from the loan’s third-party

guarantors.

For debt in which debtors are currently not bankrupt in terms of their business operations but have been determined to

have a high likelihood of going into bankruptcy, the necessary allowance amount is calculated by taking into consideration

overall ability of the debtor to pay the amount remaining after deducting the amount of collateral that is expected to be

recoverable and guarantee amounts that are determined to be recoverable.

For debt other than that described above, the reserve amount is calculated in accordance with historical credit loss

ratios over a specifi c period of time.

For all debt, the allowance amount is calculated in accordance with the self-assessment rule for assets and rules for

write-off and allowance conducted by the appropriate division and audited by an independent audit division.

Note that based on the results of the above assessment, we concluded all debts are collectible, thus no allowance was

recognized.

(2) The Company provides reserves for directors’ and auditors’ retirement benefi ts, in preparation for the payment of directors’

and auditors’ retirement benefi ts, based on amounts necessary at the end of the year according to internal rules.

6. Reserves for price fl uctuations are provided for according to Article 115 of the Insurance Business Law of Japan as reserves

for price fl uctuations on stocks and others.

7. (1) Consumption taxes are excluded from operating expenses. The deferred consumption tax for fi xed assets is recorded as

‘prepaid expense’ and amortized for 5 years. Other than the deferred consumption tax are recorded as expenses to the

fi scal year.

(2) Policy reserves are provided for according to Article 116 of the Insurance Business Law of Japan. Premium reserve is

calculated in accordance with the method determined by the Financial Services Agency (Ministry of Finance Directive

48, 1996).

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(3) Intangible fi xed assets are depreciated by the straight-line method. Internal-use software is also depreciated by the

straight-line method over its estimated useful life.

(4) The calculation of deferral amount and amortization of “Deferred expenses under Article 113 of the Insurance Business

Law of Japan” is based on the Insurance Business Law of Japan and the Company’s articles of incorporation.

Notes to Non-Consolidated Balance Sheets for FY2016

1. Accumulated depreciation of tangible fi xed assets amounted to ¥126 million.

2. The amount of total assets for separate account in accordance with the provisions set forth in Article 118, Paragraph 1 of

the Insurance Business Law of Japan was ¥464,514 million. The amount of total liabilities was the same.

3. Total receivables due to affi liated companies amounted to ¥76 million and payables due from affi liated companies amounted

to ¥304 million.

4. Deferred tax assets totaled ¥7,795 million and deferred tax liabilities were ¥1,411 million. Valuation allowance totaling ¥6,897

million was excluded from deferred tax assets. Deferred tax assets consisted mainly of net tax loss carried forward ¥6,265

million and insurance reserves of ¥1,012 million. Deferred tax liabilities arose mainly from ‘Deferred Expenses (Article 113)’ of

¥1,406 million. The effective tax rate is 28.24% for this fi scal year and the actual tax burden after the application of tax

adjustment is 6.28%. The difference is due to valuation allowance for deferred tax asset-21.80%.

5. For reserve of outstanding claims, ¥22 million of reinsurance credit was recognized. For policy reserves, ¥27,319 million of

reinsurance credit was recognized.

6. Net assets per share amounted to ¥191.28.

7. Balance of reinsurance contract related unamortized ceding commission at the end of the fi scal year, as is stipulated in the

1996 Ministry of Finance of Japan Directive Number 50 Article 1 Paragraph 5, was ¥ 3,558 million.

8. For the investment of general account assets, assets excluding separate account assets stipulated in Article 118, Paragraph 1

of the Insurance Business Law, we are conducting continuous and smooth investment activities to achieve stable profi t over

the mid-to-long term as well as making efforts to maintain a sound fi nancial position by diversifying risks.

Based on this policy, in practice, we are investing in Japanese yen-denominated fi xed-income products such as domestic

bonds, short-term fi nancial products and so on. We did not make derivative investments in this fi scal year. And there was no

transaction and position of derivatives during this fi scal year.

Note that investment securities, as our main fi nancial products, are exposed to market risks and credit risks.

In terms of investment-related risk management, we are maintaining and improving the structure based on the Investment

Risk Management Policy.

To manage market risk, management implication of investment activities and risk limit allowed considering the balance

against management resources are clearly stipulated in the Investment Limit Management Rule. These are frequently

monitored by the Investment Division and reported to the Risk Management Committee. The Risk Management Committee

reports the status of the risk management to the Management Committee and Board of Directors (BOD).

To manage credit risk, the risk limit allowed is clearly stipulated in the Investment Limit Management Rule to avoid credit

risk concentration of a specifi c enterprise, group and so on. These are frequently monitored by the Investment Division and

reported to the Risk Management Committee. The Risk Management Committee reports the status of the risk management to

the Management Committee and BOD.

For investment of the separate account defi ned in Article 118, Paragraph 1 of the Insurance Business Law, investment

trusts are used while paying attention such that the expectations for VA products are met. Note that the status of separate

accounts investment is periodically monitored by the Investment Division and reported to the Risk Management Committee.

The Risk Management Committee reports to the Management Committee and BOD.

The amount on the balance sheet, fair value and amount of differences of the fi nancial asset and liability are as below.

(Millions of yen)

Balance sheet amount Market value Amount of difference

Cash and deposits ¥ 10,740 ¥ 10,740 —

Securities

Trading securities ¥458,628 ¥458,628 —

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(1) Cash and deposits

Their market value is nearly identical to book value. We use the book value as market value.

(2) Securities

Their fair value is stated as market value or other as of the closing date of the fi scal year.

9. Estimated future contribution to the Life Insurance Policyholders Protection Corporation of Japan is ¥502 million. The

contribution payment in each future fi scal year will be recorded as operating expenses.

10. The matters regarding employee retirement benefi t is as follows.

(1) The outline of our retirement benefi t plan

The Company adopts a defi ned contribution pension plan.

(2) Defi ned contribution pension plan

The Company contributed ¥65 million into the plan during this fi scal year.

11. Implementation guidance on recoverability of deferred tax assets (Accounting Standards Board of Japan Guidance No. 26,

2016 March 28) is applied as of the current fi scal year.

12. Units smaller than those stated herein have been rounded off.

Notes to Non-Consolidated Statements of Income for FY2016

1. Expense from transactions with affi liated companies totaled ¥2,435 million.

2. Reinsurance revenue includes the increase in unamortized balance of ceding commission of ¥900 million and the decrease of

the balance of ¥244 million as stipulated in the 1996 Ministry of Finance of Japan Directive number 50 Article 1 paragraph 5.

3. Reinsurance premium paid includes deduction of ¥732 million or the modifi ed coinsurance-style transaction as stipulated in

the 1996 Ministry of Finance of Japan Directive number 50 Article 1 paragraph 5.

4. When calculating the reversal of provision for reserves for outstanding claims, the amount deducted as reinsurance credit

was ¥13 million. When calculating the provision for reserves for policy reserves, the amount deducted as reinsurance credit

was ¥11,112 million.

5. Net loss per share was ¥160.13.

6. Notes on related-party transactions are as follows.

(Parent company and major corporate shareholder)

Company Voting rights Related

Description of

Amount Balance as of

Relationship name (%) party

transaction

(Millions of yen)

Item March 31, 2015 (Millions of yen)

Capital

Other Sony Life

injection ¥1,750 — —

related Insurance Directly owned Sharing of (Note)

company Co., Ltd. 50% directors

Commission ¥2,230

Due to ¥300

payment agencies

Other Aegon Directly owned

Capital related International

50% — injection ¥1,750 — —

company B.V. (Note)


Notes to Non-Consolidated Statements of Cash Flows for FY2015

1. Cash and cash equivalents are the total of cash and deposits.


170914_01_SLA17e_1C_19-54 2.indd 29 2017/10/10 9:32


Notes to Non-Consolidated Statements of Changes in Net Assets for FY2016

1. Nature of outstanding shares and total number of outstanding shares are as follows.

(Thousands of shares)

Number of Increase in number of Decrease in number of Number of shares as of shares during shares during shares as of April 1, 2016 the fiscal year the fiscal year March 31, 2017

Shares issued Common stock 26,500 3,500 — 30,000

Total 26,500 3,500 — 30,000

Note: The number of share increases by 3,500 thousand during this period, due to allotment of new share.


Solvency Margin Ratio (Millions of yen)

FY2015 FY2016

Total solvency margin (A) ¥3,010 ¥4,342

Net assets (less certain items) ¥ (781) ¥ 726

Reserve for price fl uctuations — 1

Contingency reserve 3,791 3,614

Allowance for doubtful accounts — —

Net unrealized gains on other securities (before taxes) multiplied by 90% if gains or 100% if losses — —

Net unrealized gains on real estate multiplied by 85% if gains or 100% if losses — —

Excess of the amount equivalent to policy reserve under Zillmer method — —

Subordinated debts — —

The deducted amount from margin including the excess of of the amount equivalent to policy reserve under Zillmer method and liability funding method — —

Brought-in capital, etc. — —

Deductible items — —

Other — —

Total risk (B) ¥ 541 ¥ 880

Insurance risk R1 — —

Third-sector insurance risk R8 — —

Guaranteed interest rate risk R2 0 0

Asset management risk R7 — —

Minimum guarantee risk R3 525 854

Business management risk R4 15 25

Solvency margin ratio

1,111.7% 986.7%

Note: Calculations employed in the table above apply the methods provided for under Articles 86, 87, 161, 162 and 190 of

the Insurance Business Law of Japan’s Enforcement Regulations, as stipulated in 1996 by the Ministry of Finance

Offi cial Notifi cation No. 50.

（A） ×100

（1/2）×（B）

(R1＋R8)2＋(R2＋R3＋R7)2＋R4

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Market Value of Securities (Company Total)

Market value of securities (Company total)

(1) Net unrealized gains (losses) on securities held for trading purposes (Millions of yen)

FY2015 FY2016

Balance sheet Net valuation gains (losses) Balance sheet Net valuation gains (losses)

amount included in income amount included in income

Securities held for trading purposes ¥407,611 ¥(8,663) ¥458,628 ¥150

Note: The chart above includes monetary trusts and other accounts held for trading purposes.

(2) Market value of securities other than those held for trading purposes (Millions of yen)

FY2015 FY2016

Net Net Book Market unrealized

Unrealized Unrealized Book Market unrealized

Unrealized Unrealized value value gains

gains losses value value gains

gains losses (losses) (losses)

Bonds held to maturity ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Bonds corresponding to policy reserves — — — — — — — — — —

Shares of subsidiaries and affi liated companies — — — — — — — — — —

Available-for-sale securities — — — — — — — — — —

Japanese government bonds and corporate bonds — — — — — — — — — —

Japanese stocks — — — — — — — — — —

Foreign securities — — — — — — — — — —

Foreign government bonds and corporate bonds — — — — — — — — — —

Foreign stocks — — — — — — — — — —

Other securities — — — — — — — — — —

Monetary claims purchased — — — — — — — — — —

Certifi cates of deposit — — — — — — — — — —

Others — — — — — — — — — —

Total ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Japanese government bonds and corporate bonds ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—




Foreign stocks — — — — — — — — — —


Money claims purchased — — — — — — — — — —


Others — — — — — — — — — —

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

Law of Japan.

2. The book value of the securities that cannot be stated fair value is as follows: not applicable for FY2015 and FY2016.

Bonds held to maturity

N/A

Bonds corresponding to policy reserves

N/A

170914_01_SLA17e_1C_19-54 2.indd 31 2017/10/10 9:32


Details of Ordinary Profi t (Fundamental Profi t) (Millions of yen)

FY2015 FY2016

Fundamental profi t (loss) (A) ¥(2,875) ¥(4,996)

Capital gains: — 21

Gains on monetary trusts — —

Gains on investments in trading securities — —

Gains on sales of securities — —

Gains from derivatives — —

Foreign exchange gains — 21

Other capital gains — —

Capital losses: — —

Losses on monetary trusts — —

Losses on investments in trading securities — —

Losses on sales of securities — —

Devaluation losses on securities — —

Losses from derivatives — —

Foreign exchange losses — —

Other capital losses — —

Net capital gains (losses) (B) — 21

Fundamental profi t plus net capital gains (A)+(B) (2,875) (4,975)

Other one-time gains: — 177

Reinsurance claims received — —

Reversal of contingency reserves — 177

Reversal of reserves for specifi c loan problems — —

Other — —

Other one-time losses: 25 —

Reinsurance premiums paid — —

Provision for contingency reserves 25 —

Provision for reserves for specifi c problem loans — —

Provision for reserves for specifi c overseas receivable assets — —

Loans amortization — —

Other — —

Total other one-time gains (losses) (C) (25) 177

Ordinary profi t (loss) (A)+(B)+(C) ¥(2,901) (4,797)

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Overview of Performance Indices

1. Overview of the Company’s business results

Overview of the Company’s Business Results on pages 4 to 7.

2. Insurance in force and new business

(1) Insurance in force (Policies, millions of yen and %)

FY2015 FY2016

Number Number

of policies YoY change (%)

Amount

YoY change (%)

of policies YoY change (%)

Amount

YoY change (%)

Individual life insurance — —% ¥ — —% — —% ¥ — —%

Individual annuities 73,403 115.4 444,280 113.8 85,942 117.1 501,784 112.9

Group life insurance — — — — — — — —

Group pension — — — — — — — —

(2) New business (Policies, millions of yen and %)

FY2015 FY2016

Number YoY YoY New

Increase Number YoY YoY New

Increase

of policies change Amount change business

from of policies change Amount change business

from

(%) (%) conversion (%) (%) conversion

Individual life insurance — —% ¥ — —% ¥ — — — —% ¥ — —% ¥ — —

Individual annuities 11,851 44.2 71,593 43.9 71,593 — 14,261 120.3 70,814 98.9 70,814 —

Group life insurance — — — — — — — — — — — —

Group pension — — — — — — — — — — — —

Note: New business of individual annuities represents the present values of annuities at the time of annuity payments.

3. Annualized premiums

(1) In force (Millions of yen and %)

FY2015 FY2016

Amount YoY change (%) Amount YoY change (%)

Individual life insurance ¥ — —% ¥ — —%

Individual annuities 35,798 104.9 39,721 111.0

Total ¥35,798 104.9 ¥39,721 111.0

Medical protection, living benefi t protection, etc. — — — —

(2) New business (Millions of yen and %)

FY2015 FY2016

Amount YoY change (%) Amount YoY change (%)

Individual life insurance ¥ — —% ¥ — —%

Individual annuities 8,108 47.5 8,108 100.0

Total ¥8,108 47.5 ¥8,108 100.0

Medical protection, living benefi t protection, etc. — — — —

Note: Annualized premiums are premium amount per policy year.

Performance Indices

170914_01_SLA17e_1C_19-54 2.indd 33 2017/10/10 9:32


4. Insurance in force by insurance type (Millions of yen)

Insurance type FY2015 FY2016

Death protection ¥ — ¥ —

Individual life insurance ¥ — ¥ —

Maturity/

Individual annuities 421,848 477,307

living benefi ts

Group life insurance — —

Group pension — —

Total (including others not listed above) ¥421,848 ¥477,307

Individual life insurance ¥ [ —] ¥[ —]

Individual annuities [ 789] [ 877]

Living protection Annuities Group life insurance [ —] [ —]

Group pension [ —] [ —]

Total (including others not listed above) ¥ [ 789] ¥[ 877]



Other Group life insurance — —


Total (including others not listed above) ¥ 22,432 ¥ 24,477

Hospitalization protection ¥ — ¥ —

Notes: 1. Figures in brackets indicate additional coverage and rider coverage attached to primary policies.

2. Figures for maturity / living benefi ts in the living protection category indicate present value of annuities at the time of annuity payments for

policies during accumulation period.

3. Figures for annuities in the living protection category indicate annual annuity amounts.

4. Figures for other in the living protection category indicate policy reserves for individual annuities (in payout status).

(Number of policies)

FY2015 FY2016

Disability protection — —

Surgery protection — —

5. Policies in force by product line (Millions of yen)

FY2015 FY2016

Death protection insurance — —

Mixed insurance death and living — —

Pure endowment insurance — —

Annuities Individual annuities ¥444,280 ¥501,784

Accident and sickness-related riders — —

Note: The fi gure for individual annuities is the total of the following:



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6. In force roll forward

Individual annuities (Policies, millions of yen and %)

FY2015 FY2016

Number Amount Number Amount

At the beginning of the year 63,593 ¥390,423 73,403 ¥444,280

Increase due to:

New policies 11,851 71,593 14,261 70,814

Reinstatements — — — —

Conversions — — — —

Decrease due to:

Death 205 1,644 277 2,207

Maturity — — — —

Decrease in coverage amount — 1,546 — 1,641

Conversions — — — —

Surrender 1,826 11,663 1,442 9,656

Lapse — — — —

Others 10 2,880 3 (194)

At year-end 73,403 ¥444,280 85,942 ¥501,784 [YoY increase (decrease)] [15.4] [13.8] [17.1] [12.9]

Net increase 9,810 ¥ 53,857 12,539 ¥ 57,503 [YoY increase (decrease)] [(61.3)] [(65.0)] [27.8] [6.8]

Note: Amount is the total of the following:



Insurance-Related Indices

1. YoY growth in insurance in force

FY2015 FY2016

Individual life insurance — —

Individual annuities 13.8% 12.9%



2. Average policy size (Thousands of yen)

FY2015 FY2016

Average policy amount for new policies ¥6,041 ¥4,965

Average policy amount for policies in force ¥5,924 ¥5,734

Note: Figures are for individual annuities.

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3. Ratio of new policy amount (against the beginning of the year in force)

FY2015 FY2016




4. Lapse and surrender rate (against the beginning of the year in force)

FY2015 FY2016




5. Average annual premium of new individual life insurance policy (with monthly payments)

N/A

6. Mortality rate (individual life insurance)

Based on number of policies Based on policy amount

FY2015 FY2016 FY2015 FY2016

3.0‰ 3.5‰ 3.9‰ 4.6‰Note: Figures are for individual annuities.

7. Incidence of events covered by riders (individual insurance)

N/A

8. Expense ratio (operating expenses as a percentage of premium income)

FY2015 FY2016

Expense ratio (operating expenses as a percentage of premium income) 9.3% 11.6%

9. The number of major reinsurers that accepted reinsurance agreements

FY2015 FY2016

The number of major reinsurers 2 2

10. The ratio of reinsurance premiums paid to top fi ve reinsurers against total

reinsurance premiums

FY2015 FY2016

The ratio of reinsurance premiums paid to top fi ve reinsurers against total reinsurance premiums 100.0% 100.0%

11. The ratio of reinsurance premiums paid to major insurance companies which

accepted reinsurance agreements by ratings assessed

Classifi cation FY2015 FY2016

AA- 89.7% 85.4%

Others (no rating) 10.3% 14.6%

Note: The rating is based on Standard & Poor's.

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12. Unreceived reinsurance claims (Millions of yen)

FY2015 FY2016

Unreceived reinsurance claims ¥3,647 ¥3,118

Financial Indices

1. Details of reserve for outstanding claims (Millions of yen)

FY2015 FY2016

Death benefi ts ¥ — ¥ —

Accident benefi ts — —

Disability payments — —

Insurance claims Maturity benefi ts — —

Other — —

Subtotal — —

Annuity payments 20 26

Insurance benefi ts 188 250

Surrender payments 68 36

Deferred insurance benefi ts — —

Total, including others ¥277 ¥312

2. Policy reserves by product line (Millions of yen)

FY2015 FY2016


General account — —

Separate account — —


General account 2,272 1,501

Separate account 417,122 464,272







Others — —



Subtotal ¥419,394 ¥465,774



Contingency reserves 3,791 3,614

Total ¥423,186 ¥469,388



Policy reserves:

(except contingency

reserves)

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3. Details of policy reserves (Millions of yen)

Premium reserve

Unearned Refund reserve

Contingency Total

premium reserve reserve

FY2015 ¥419,394 ¥— ¥— ¥3,791 ¥423,186

FY2016 ¥465,774 ¥— ¥— ¥3,614 ¥469,388

4. Policy reserve for individual life insurance and individual annuities (by fi scal year issued)

(1) Policy reserve accumulation method and accumulation rate

FY2015 FY2016

Policies subject to standard Standard policy reserve Standard policy reserve

Accumulation policy reserve

method Policies not subject to standard Not applicable Standard policy reserve

policy reserve

Accumulation rate (excluding contingency reserve) 100.0% 100.0%

Notes: 1. Only about individual policies

2. For the accumulation rate, policies subject to standard policy reserve is according to the Ministry of Finance Notifi cation No. 48 and policies

not subject to standard policy reserves are according net level premium reserve formula for insurance premium reserves, as well as the

reserve ratio for unearned premiums is shown.

(2) Balance of policy reserves (by fi scal year issued) (Millions of yen and %)

Fiscal year issued

Balance of Assumed policy reserves interest rate

–FY1980 ¥ — —%

FY1981–FY1985 — —

FY1986–FY1990 — —

FY1991–FY1995 — —

FY1996–FY2000 — —

FY2001–FY2005 — —

FY2006–FY2010 78 0.10～0.55

FY2011 12 0.10～0.55

FY2012 10 0.10

FY2013 31 0.00～0.55

FY2014 26 0.00～0.55

FY2015 33 0.00～0.50

FY2016 ¥1,309 0.00～0.50%

Notes: 1. Balance of policy reserves shows policy reserves for individual annuities.

2. Assumed interest rate shows the main assumed interest rate on policy reserves for each policy year.

5. Details of allowance for doubtful accounts and other reserves (Millions of yen)

FY2015 FY2016

Increase (decrease) during the fiscal year

Allowance for doubtful accounts ¥ — ¥ — ¥ —

Reserves for directors’ and auditors’ retirement benefi ts 40 55 14

Reserves for price fl uctuation ¥ — ¥ 1 ¥ 1

Note: Details are under 5 and 6 of the Signifi cant accounting policies.

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6. Details of capital (Millions of yen)

FY2015

Increase during Decrease during FY2016

the fiscal year the fiscal year

Share capital ¥13,250 ¥1,750 ¥— ¥15,000

(26,500,000 shares) (3,500,000 shares) (—) (30,000,000 shares)

Shares

Common stock

13,250 1,750 — 15,000

issued

Total 13,250 1,750 — 15,000

Capital reserves 13,250 1,750 — 15,000

Capital Other capital surplus surplus — — — —

Total ¥13,250 ¥1,750 ¥— ¥15,000

7. Details of premium income (Millions of yen)

FY2015 FY2016


Single payment — —

Annual payment — —

Semiannual payment — —

Monthly payment — —


Single payment 71,383 70,814

Annual payment — —

Semiannual payment — —

Monthly payment — —



Total (including others not listed above) ¥71,383 ¥70,814

8. Details of annuity payments (Millions of yen)

Financial

Individual life Individual Group life Group insurance Others

FY2016 FY2015

insurance annuities insurance pension financial

annuities

¥— ¥873 ¥— ¥— ¥— ¥— ¥873 ¥791

9. Details of insurance benefi ts (Millions of yen)

Individual

Financial

life

Individual Group life Group insurance Others

FY2016 FY2015

insurance

annuities insurance pension financial

annuities

Death ¥— ¥2,125 ¥— ¥— ¥— ¥— ¥2,125 ¥1,736

Hospitalization — — — — — — — —

Surgery — — — — — — — —

Disability — — — — — — — —

Living — — — — — — — —

Other — 13 — — — — 13 700

Total ¥— ¥2,138 ¥— ¥— ¥— ¥— ¥2,138 ¥2,436

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10. Details of surrender payments (Millions of yen)

Financial

Individual life Individual Group life Group insurance Others

FY2016 FY2015

insurance annuities insurance pension financial

annuities

¥— ¥9,508 ¥— ¥— ¥— ¥— ¥9,508 ¥12,100

11. Details of depreciation (Millions of yen and %)

Acquisition Depreciation Accumulated Balance Depreciation ratio cost for the fiscal year depreciation FY2016

Tangible fi xed assets ¥138 ¥2 ¥126 ¥12

Buildings 98 2 85 12 87.6%

Leases 4 — 4 — 100.0

Other tangible fi xed assets 36 — 36 — 100.0

Intangible fi xed assets — — — — —

Other 3 0 2 0 73.8

Total ¥142 ¥3 ¥129 ¥13 90.8%

12. Details of operating expenses (Millions of yen)

FY2015 FY2016

Sales activity expenses ¥2,675 ¥3,330

Sales administration expenses 1,581 1,872

General administration expenses 2,393 3,044

Total ¥6,649 ¥8,247

Note: Contribution of ¥37 million to the Life Insurance Policyholders Protection Corporation of Japan is included in general

administration expenses for FY2016.

13. Details of tax expenses (Millions of yen)

FY2015 FY2016

National tax ¥395 ¥450

　Consumption tax 323 380

　Corporate special tax for municipal governments 66 52

　Documentary stamp tax 3 3

　Registration and license tax 1 12

　Other national tax 0 1

Municipal tax 257 239

　Municipal consumption tax 87 102

　Corporate inhabitant tax — —

　Corporate enterprise tax (premium tax) 164 130

　Fixed asset tax 0 0

　Real estate acquisition tax — —

　Business offi ce tax 5 5

　Other municipal tax — —

Total ¥653 ¥690

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Asset Management Indices (General Account)

1. Asset management

(1) Status of invested assets for FY2016

Operating Environment

The Japanese economy in FY2016 was affected by the dull overseas economy, the unfavorable consumer spending and the

unfavorable private non-residential investments in the fi rst half of the year. However, the economy slowly picked up due to

an improvement in the employment and income environment. The growth of the cost of living decreased by factors as the

decline in crude oil prices. As a result, FY2016 real GDP growth rate (government prospect) is estimated to be about 1.3%.

Equity market showed ups and downs after “Brexit” (withdrawal of the UK from the EU) in June, but later increased due

increasing expectations towards the new administration in the US, the rise in US interest rates and the depreciation of JPY.

Nikkei average at the end of march 2017 was 2,151 higher than the end of the previous fi scal year and ended at 18,909.

In the bond market, after the introduction of negative interest rates by the BOJ, interest rates declined further in the fi rst

half of the fi scal year in the context of increasing risk averseness after “Brexit”. Due to increasing interest rates in the US and

increasing stock prices in Japan, long term interest rates recovered to the plus. 10 year JGB yield at the end of March was

0.115 points higher than the previous year, resulting in 0.065%.

In the foreign exchange market, the yen appreciated due to the risk avoidance trend in the fi rst half of the fi scal year,

falling behind ¥100 per USD. The yen weakened due to the interest rate hike in the US leading to a larger gap between

interest rates in Japan and the US and increasing stock prices. Exchange rate at the end of March was ¥112.19 per USD,

¥0.49 yen higher than the end of the previous fi scal year.

Investment policy

The Company mainly invests shareholder capital in the general account. The Company’s investment focuses on safety and

liquidity seeking profi t for the middle and long-term to ensure the sound management of the company.

The investment policy is to invest mainly short-term fi xed-interest assets such as public/corporate bonds, deposits and

savings, and not in high risk instruments such as stocks or foreign equities.

Investment performance summary

Status of investment result of invested assets in the general account were mainly bank deposits, savings and Japanese

government bonds that are safe, highly liquid and yield stable profi t.

Gains from the investment was ¥23 million, partly due to the sales start of foreign currency denominated products and

the exchange gains and losses due to foreign currency transactions related to these products. Balance of the general

account at the end of March 2017 was ¥13.956 billion.

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(2) Portfolio transition

1) General account assets (Millions of yen and %)

FY2015 FY2016

Amount % of total Amount % of total

Cash and deposits, call loans ¥ 4,500 27.8% ¥ 5,394 38.7%

Securities repurchased under resale agreements — — — —

Pledged money for bond borrowing transactions — — — —

Monetary claims purchased — — — —

Securities under proprietary accounts — — — —

Monetary trusts — — — —

Securities — — — —

Japanese government bonds and corporate bonds — — — —

Japanese stocks — — — —

Foreign securities — — — —

Foreign government bonds and corporate bonds — — — —

Foreign stocks — — — —

Other securities — — — —

Loans — — — —

Policyholder loans — — — —

Other loans — — — —

Real estate 14 0.1 12 0.1

Deferred tax assets — — — —

Other 11,702 72.2 8,549 61.3

Allowance for doubtful accounts — — — —

Total ¥16,217 100.0% ¥13,956 100.0%

Foreign currency- denominated assets — — 1,631 11.7

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2) Increase (Decrease) in general account assets (Millions of yen)

FY2015 FY2016

Cash and deposits, call loans ¥(5,958) ¥ 893

Securities repurchased under resale agreements — —

Pledged money for bond borrowing transactions — —

Monetary claims purchased — —

Securities under proprietary accounts — —

Monetary trusts ̶ —

Securities — —

Japanese government bonds and corporate bonds — —

Japanese stocks — —

Foreign securities — —

Foreign government bonds and corporate bonds — —

Foreign stocks — —

Other securities — —

Loans — —

Policyholder loans — —

Other loans — —

Real estate (49) (2)

Deferred tax assets — —

Other (2,256) (3,152)


Total ¥(8,265) ¥(2,261)

Foreign currency-denominated assets — 1,631

2. Yield by asset class

FY2015 FY2016

Cash and deposits, call loans 0.00% 0.06%






Securities — —




Loans — —

Loans other than policy loans — —

Real estate — —

General Account Total 0.00% 0.16%

Notes: 1. Yield is calculated using the daily average balance on a book value basis as the denominator and net investment

income or loss obtained by subtracting investment expenses in ordinary expenses from investment income in

ordinary revenues as the numerator.

2. Valuation gains for Article 112 of the Insurance Business Law of Japan are not included in the yield calculation.

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3. Average balance on primary assets (Millions of yen)

FY2015 FY2016

Cash and deposits, call loans ¥ 4,274 ¥ 4,466






Securities — —




Loans — —

Loans other than policy loans — —

Real estate 59 13

Total ¥18,058 ¥14,639

Overseas investment — —

4. Details of investment income (Millions of yen)

FY2015 FY2016

Interest and dividends ¥ 0 ¥ 2

Income from trading securities, net — —

Income from monetary trusts, net — —

Income from investments in trading securities, net — —

Gains on sale of securities — —

Gains on redemption of securities — —

Gains from derivatives, net — —

Foreign exchange gains, net — 21

Reversal of allowance for doubtful accounts — —

Other investment income — —

Total ¥ 0 ¥ 23

5. Details of investment expenses (Millions of yen)

FY2015 FY2016

Interest expenses ¥ 0 ¥ —

Losses from trading securities, net — —

Losses from monetary trusts, net — —

Losses from investments in trading securities, net — —

Losses on sale of securities — —

Devaluation losses on securities — —

Losses on redemption of securities — —

Losses from derivatives, net — —

Foreign exchange losses, net — —


Loans write-off — —

Depreciation of real estate for rent and others — —

Other investment expenses — —

Total ¥ 0 ¥ —

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6. Details of interest and dividend income (Millions of yen)

FY2015 FY2016

Interest on bank deposits ¥ 0 ¥ 2

Interest and dividends on securities — —

Interest on Japanese government and corporate bonds — —

Dividends on securities — —

Interest and dividends on foreign securities — —

Interest on loans — —

Rental income from real estate — —

Total (including others not listed above) ¥ 0 ¥ 2

7. Balance of securities by years to maturity (Millions of yen)

FY2016

Over Over Over Over

One year one year three years five years seven years Over ten

or less through through through through years Total

three years five years seven years ten years

Securities ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Japanese government bonds — — — — — — —

Municipal bonds — — — — — — —

Corporate bonds — — — — — — —


Foreign securities — — — — — — —

Foreign government bonds and corporate bonds — — — — — — —

Foreign stocks — — — — — — —

Other securities — — — — — — —

Money claims purchased — — — — — — —

Certifi cates of deposit — — — — — — —

Others — — — — — — —

(Millions of yen)

FY2015

Over Over Over Over

One year one year three years five years seven years Over ten

or less through through through through years Total

three years five years seven years ten years

Securities ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Japanese government bonds — — — — — — —

Municipal bonds — — — — — — —

Corporate bonds — — — — — — —


Foreign securities — — — — — — —

Foreign government bonds and corporate bonds — — — — — — —

Foreign stocks — — — — — — —

Other securities — — — — — — —

Money claims purchased — — — — — — —

Certifi cates of deposit — — — — — — —

Others — — — — — — —

170914_01_SLA17e_1C_19-54 2.indd 45 2017/10/10 9:33


8. Tangible fi xed assets

(1) Details of tangible fi xed assets (Millions of yen and %)

FY2015

March 31, Increase Decrease

Depreciation March 31, Accumulated Depreciation

2015 expenses 2016 depreciation ratio

Land ¥ — ¥ — ¥ — ¥— ¥ — ¥ — —%

Buildings 64 5 43 11 14 83 85.1

[43]

Lease assets 1 — — 1 — 4 100.0

Construction in progress — — — — — — —

Other tangible assets 10 7 13 4 — 70 100.0

[13]

Total 75 13 57 16 14 158 91.6

[57]

Tangible fi xed assets held for leasing ¥ — ¥ — ¥ — ¥— ¥ — ¥ — —%

(Millions of yen and %)

FY2016

March 31, Increase Decrease

Depreciation March 31, Accumulated Depreciation

2014 expenses 2017 depreciation ratio

Land ¥— ¥— ¥— ¥— ¥ — ¥ — —%

Buildings 14 — — 2 12 85 87.6

Lease assets — — — — — 4 100.0

Construction in progress — — — — — — —

Other tangible assets — — — — — 36 100.0

Total 14 — — 2 12 126 91.2

Tangible fi xed assets held for leasing ¥— ¥— ¥— ¥— ¥ — ¥ — —%

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(2) Details of real estate holdings by use (Millions of yen)

FY2015 FY2016

Value of real estate holdings ¥14 ¥12

For business operations 14 12

For lease — —

Number of buildings held for leasing — —

9. Details of losses on disposal of fi xed assets (Millions of yen)

FY2015 FY2016

Tangible fi xed assets ¥ 0 ¥ —

Land — —

Buildings 0 —

Leases — —

Others — —

Intangible fi xed assets — —

Others — —

Total ¥ 0 ¥ —

Tangible fi xed assets held for leasing — —

10. Details of other assets (Millions of yen)

Acquisition Increase during Decrease during Accumulated Balance at the cost the fiscal year the fiscal year depreciation end of FY2016

Deferred assets ¥3 ¥— ¥— ¥ 2 ¥0

Others 0 0 — — 0

Total ¥3 ¥ 0 ¥— ¥ 2 ¥0

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Market Value of Securities (General Account)

Market value of securities

Market value of securities other than those held for trading purposes (Millions of yen)

FY2015 FY2016 Net Net Book Market unrealized

Unrealized Unrealized Book Market unrealized

Unrealized Unrealized value value gains

gains losses value value gains

gains losses (losses) (losses)

Bonds held to maturity ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Bonds corresponding to policy reserves — — — — — — — — — —

Shares of subsidiaries and affi liated companies — — — — — — — — — —

Available-for-sale securities — — — — — — — — — —

Japanese government bonds and corporate bonds — — — — — — — — — —




Foreign stocks — — — — — — — — — —


Monetary claims purchased — — — — — — — — — —


Others — — — — — — — — — —

Total ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—

Japanese government bonds and corporate bonds ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥— ¥—




Foreign stocks — — — — — — — — — —


Money claims purchased — — — — — — — — — —

Certifi cates of deposit ¥— ¥— — — — — — — — —

Others — — — — — — — — — —

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

Exchange Law of Japan.

2. Cash trust includes other than trading securities, however this is not applicable for FY2015 and FY2016.

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Balance of Separate Account (Millions of yen)

FY2015 FY2016

Individual variable life insurance ¥ — ¥ —

Individual variable annuities 417,180 464,514


Total separate account assets ¥417,180 ¥464,514

Status of Separate Account Assets for Individual Variable Insurance and Annuities

Individual variable annuities

Name of separate account

Date account established

Primary investments and investment trust (fund)management policy

Unit price

March 31, 2016

March 31, 2017

Japanese stock fund

(1A-1)

December 9,2009

Mainly investments in Blackrock Japanese Stock Index Mother Funds managed with the fundamental objective of long-term capital growth.

153.75 172.11

Foreign stock fund

(1A-2)

December 9,2009

Primarily investments in MSCI-Kokusai Index Mother Funds managed aggressively with the fundamental objective of long-term capital growth.

183.83 205.26

Japanese bond fund

(1A-3)

December 9,2009

Mainly investments in State Street Japanese Bond Index Mother Funds managed with the fundamental objective of generating investment returns that track the Japanese government bond market over the medium-to-long term.

104.34 101.12

Foreign bond fund

(1A-4)

December 9,2009

Mainly investments in Blackrock Foreign Bond Index Mother Funds managed with the fundamental objective of medium- and long-term growth.

129.22 121.42

Balanced fund 20 (3A-1)

December 9,2009

Employs a family of funds to invest in foreign and domestic stocks and government and corporate bonds with the objective of generating investment returns that track relevant benchmarks.

114.61 112.21

Balanced fund 20(4A-1)

January 28,2011

Managed with the objective of stable capital growth. Invests in yen-denominated short-term government and corporate bonds and short-term fi nancial instruments through money market and income funds. Also invests directly in a portfolio diversifi ed among the four asset classes of domestic stocks, domestic bonds, foreign stocks and foreign bonds using instruments including stock index futures, bond futures and forward foreign currency contracts on exchanges in various countries and regions, including Japan.

114.08 112.89

Balanced fund 20 (4A-2)

February 9,2011

Invests in a diversifi ed portfolio of stocks in Japan, the United States and European Monetary Union (EMU) countries; government and corporate bonds, and short-term fi nancial instruments; and stock index futures and bond futures listed on exchanges in Japan, the United States, and EMU countries with the objective of generating investment returns that track synthetic indexes using the fundamental allocation of the benchmark for each asset class.

113.05 111.87

Aggressive fund

(4A-3)

December 19, 2012

Managed with the objective of long-term growth in trust assets using Mother Funds that invest mainly in equities in developed countries including Japan and in emerging countries; Mother Funds that invest mainly in government and corporate bonds in developed countries including Japan; and investments in foreign investment trusts that invest mainly in government and corporate bonds in Asian countries excluding Japan.

127.78 134.69

Balanced fund 2011

(5A-1)

August 9, 2011

Divides assets under management between “aggressively managed assets” and “conservatively managed assets.” The dividend allocation rate for each type of asset is based on a volatility control process, and is revised periodically according to changes in the market environment. Managed with the fundamental objective of long-term capital growth. Target volatility is 4.5%.

112.18 108.80

Status of Separate Account

Note: Unit price is computed to eight decimal places, but is truncated to two decimal places in this presentation.

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Unit price

March 31, 2016

March 31, 2017

Balanced fund 2011

(5A-2)

August 9, 2011


114.94 112.15

Balanced fund 2011

(5A-3)

August 11, 2011


124.19 121.08

Balancedfund 2011

(5A-4)

January 16,2013

Divides assets under management between “aggressively managed assets” and “conservatively managed assets.” The asset allocation ratio for each type of asset is based on a volatility control process, and is revised periodically according to changes in the market environment. It adjusts the asset allocation between “aggressively managed assets” and “conservatively managed assets” based on the volatility control process. The four model portfolios for “aggressively managed assets” allocate assets among seven asset classes at fi xed percentages. Managed with the fundamental objective of long-term capital growth by shifting assets to model portfolios that are expected to generate the best returns based on periodic measurement of the return of each portfolio over the preceding 12 months.

99.20 96.55

Balancedfund 2011

(5A-5)

January 15,2013


101.29 99.08

Balanced fund 2011

(6A-1)

August 9, 2011


122.09 118.44

Balancedfund 2011

(6A-2)

November 2, 2012


110.66 107.33

Balancedfund 2012

(7A-1)

August 20,2012


104.46 101.67

Balancedfund 2012

(7A-2)

August 17, 2015


93.64 90.47


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Unit price

March 31, 2016

March 31, 2017

Balanced fund 2013

(8A-1)

October 9, 2013


104.49 101.97

Balanced fund 2013

(8A-2)

October 9, 2013


104.72 102.30

Balanced fund 2015

(9A-1)

October 9,2015


98.43 98.42

Balancedfund 2015

(9A-2)

October 9,2015


98.29 98.10

Balancedfund 2015

(9A-3)

October 9,2015


97.95 97.95

Balanced fund 2015

(9A-4)

October 13, 2016


― 101.74

Risk balanced fund 2015

(10A-1)

May 30, 2016

Through master fund investments, risk-based fl exible asset allocation and volatility control on the portfolio, it is managed with the fundamental objective of steady growth of trust assets and stable earnings. The currency is USD and target volatility is 5.0%.

― 102.98


(10A-2)

May 11, 2016


― 103.69


(10A-5)

October 14, 2016


― 101.27


(11A-1)

May 27, 2016

Through master fund investments, risk-based fl exible asset allocation and volatility control on the portfolio, it is managed with the fundamental objective of steady growth of trust assets and stable earnings. The currency is AUD and target volatility is 4.0%.

― 102.86


(11A-2)

May 18, 2016


― 104.62


(11A-3)

May 11, 2016


― 104.77


(11A-7)

February 9, 2017


― 100.90


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Status of Individual Variable Insurance and Annuities

Individual variable annuities

1. Insurance in force (Millions of yen)

FY2015 FY2016

Number of Number of policies

Amount policies

Amount

Individual variable annuities 73,073 ¥442,008 85,688 ¥500,285

2. Asset composition (Millions of yen)

FY2015 FY2016

Amount % Amount %

Cash and deposits, call loans ¥ 8,771 2.1% ¥ 5,346 1.2%

Securities 407,611 97.7 458,628 98.7

Japanese government bonds and corporate bonds — — — —

Japanese stocks — — — —

Foreign securities — — 39,422 8.5

Foreign government bonds and corporate bonds — — — —

Foreign stocks — — 39,422 8.5

Other securities 407,611 97.7 419,205 90.2

Loans — — — —

Other 797 0.2 539 0.1

Allowance for doubtful accounts — — — —

Total ¥417,180 100.0% ¥464,514 100.0%

3. Investment performance (Millions of yen)

FY2015 FY2016

Interest and dividend income ¥ — ¥ 1,385

Gains on sale of securities 1,837 —

Gains on redemption of securities — —

Valuation gains on securities (8,416) 27,437

Foreign exchange gains, net — 1,647

Gains from derivatives, net — —

Other investment income — —

Losses on sale of securities 1 13

Losses on redemption of securities — —

Valuation losses on securities 246 27,287

Foreign exchange losses, net — —

Losses from derivatives, net — —

Other investment expenses — —

Net investment gains (losses) ¥(6,827) ¥ 3,170

4. Market value of securities

Valuation gains (losses) on securities held for trading purposes (Millions of yen)

FY2015 FY2016

Balance sheet Net valuation gains (losses) Balance sheet Net valuation gains (losses) amount included in net income amount included in net income

Securities held for trading purposes ¥407,611 ¥(8,663) ¥458,628 ¥150

170914_01_SLA17e_1C_19-54 2.indd 52 2017/10/10 9:33

17.10 LC CP50E008

AEGON Sony Life Insurance Co., Ltd.Aoyama Oval Bldg. 5-52-2, Jingumae, Shibuya-ku,

Tokyo 150-0001, Japan

Telephone +81-3-6823-5555

171006_01_SLA_2017e前半.indd H4 2017/10/10 9:31

annual report 2017 - ソニーライフ・エイゴン生命保険 - · pdf file2017 annual...

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