Message from the President of Sony Life
Sony Life was founded in August 1979 with the goal of providing customers with the full range of value that life insurance could offer. Since then, in line with its corporate mission "To work for customers' financial security and stability by offering optimal life insurance products and high-quality services", Sony Life has pursued its original ideals for life insurance. We strive to continue providing value in a way in which only Sony Life can. As we move toward FY2009, which marks the 30th anniversary of our founding, the number of policies in force exceeded 4.7 million. The support and understanding of our customers has facilitated this expansion.
In FY2008, Sony Life's new policy amount* was up 1.9% from previous year to ¥3,873.7 billion. In addition, our policy amount in force* as of March 31, 2009, was ¥32,517.6 billion, up 3.2% from one year earlier. Our solvency margin ratio, which is one indicator of an insurance company's financial soundness, remained high, at 2,060.5%**.
Our corporate slogan, "LIFEPLANNER VALUE"***, expresses our commitment to accompanying customers through each life stage and help them realize their dreams and live fulfilling lives. In the 30 years since our founding, we have come to believe in the ideal of standing by our customers. Through consulting services based on each customer's life plan, we seek to share with customers their dreams and wishes and their thoughts for their families, as well as their uncertainties and concerns for the future. We seek to provide optimal protection so that customers can continue to fulfill their families' dreams for the future, even if the unfortunate occurs.
Even after they have taken out life insurance, customers' life plans and economic circumstances may change. Through finely tuned follow-up services, we help customers maintain appropriate protection so that their lives remain secure as they move toward their dreams.
Sony Life aims to be a trusted and indispensible presence to its customers. To achieve this goal, we will keep working to enhance our level of quality and to increase the number of people who experience our value offerings.
We promise our customers that, as we continue to grow, we will win the trust that they have placed in us by becoming the world quality leader in life insurance.
July 1, 2009
Taro Okuda
President, Representative Director
Sony Life Insurance Co., Ltd.
*The new policy amount and policy amount in force are the total of individual life insurance and individual annuities.
** The solvency margin ratio is one administrative control indicator used to judge if an insurer has the "ability to pay" (solvency margin) insurance claims in sufficient response to a major disaster or other unforeseen event.
***"LIFEPLANNER VALUE" is a registered trademarks of Sony Life Insurance Co., Ltd.
Message from the President of Sony Assurance
FY2008 saw strong growth in the number of new policies in force, primarily for automobile insurance, and net premiums written in all categories grew 11.1% to ¥61.1 billion. Ordinary revenues grew 11.2% to ¥61.8 billion. Despite an increase in ordinary revenues, ordinary profit declined 22.7% to ¥2.1 billion, because the loss ratio worsened due to natural disasters, and in FY2007 a change in the method for calculating underwriting reserves in some categories added ¥0.5 billion to profits. Sony Assurance posted a net loss of ¥1.5 billion, having recorded losses on disposal of fixed assets* under extraordinary losses. The company continued to maintain a high standard of financial soundness with the solvency margin ratio standing at 993.0% at the end of March 2009.
Brisk growth in the number of new automobile insurance policies took the number of policies in force over the one million mark. We gratefully regarded this as a proof that our customers appreciate our automobile insurance services.
Sony Assurance marks the 10th anniversary of its business launch in October 2009. During the past decade, we have been facing one of drastic changes in non-life insurance market conditions following a backdrop of deregulation. Competition intensified amid progressive liberalization of products and premiums, resulting in a spate of insurance company mergers and new players entering the market. Another feature of this period was major changes in sales channels as reflected in the rise of direct insurance companies like Sony Assurance. Direct insurance companies have accelerated their growth on the back of the increasing trend among consumers to shop around for the best deal, and we expect this business model to continue recording substantial growth.
Sony Assurance will continue to do business focused on our basic strategies of establishing a price advantage that harnesses the strengths of our business model and providing a superior standard of service. As well, we are strengthening our online application acceptance, services, and marketing in today's Internet age so that we can grow further as a leading direct insurance company.
July 1, 2009
Shinichi Yamamoto
President, Representative Director
Sony Assurance, Inc.
* For the purpose of enhancing system and operational efficiency, Sony Assurance began developing new systems in FY2006. However, in FY2008, Sony Assurance decided to suspend this development and to overhaul its development policy. Accordingly, some software assets that were previously recorded as intangible fixed assets (software in progress) and for which future use is uncertain were disposed of, resulting in losses on disposal of fixed assets.
Message from the President of Sony Bank
So stark was the contrast in financial market conditions between the first and second halves of FY2008 that they could have been two different worlds. The crisis was triggered by the collapse of Lehman Brothers in September 2008. Gone was the optimistic outlook that had prevailed until that point; world credit markets contracted, and the impact on the economy was substantial. Even Japan, with limited exposure to the subprime loan crisis, experienced an economic downturn and a flurry of corporate bankruptcies.
Sony Bank was no exception in being caught up in the financial market turmoil. The bank made a shift in focus of its strategy from building the foundations for future earnings to current profitability. Specifically, we offered competitive interest rates in the first half of FY2008 to attract deposits, and maintained reasonable prices based on market levels in the second half, as it had done in the past. Sony Bank recorded solid sales of loan products via banking agents, who are allowed to explain the features of each product.
Sony Bank continued to introduce new services. New services that started in or after 2008 are the private asset management tool named "LifePass-Book" (March 2008), foreign exchange margin transactions (May 2008), and credit cards whose payments can be made in two currencies (October 2008). In October 2008, Sony Bank also launched a sweep service that automatically transfers funds between Sony Bank yen ordinary deposit and Sony Bank Securities trading accounts to improve the convenience of asset management services. In response to many customer requests to increase the number of ATMs, Sony Bank signed up with LAWSON ATM Networks and E-net so that account holders could use LAWSON ATMs beginning in October 2008 and E-net ATMs beginning in November 2008.
To strengthen our financial position as a way of underpinning these business developments, we raised capital by a capital increase totaling ¥12 billion (¥6 billion each in April and November 2008) and a ¥2 billion subordinated loan in June 2008. In October 2008, Sony Bank received a long-term senior debts rating of AA- from Japan Credit Rating Agency, Ltd. (JCR).
Sony Bank anticipates ongoing instability of financial markets through FY2009. The substance and direction of Sony Bank's services are meeting customers' needs. We are seeking to diversify Sony Bank Securities' services, which are still somewhat limited, so that customers can take advantage of deregulation of banks and securities firms and enjoy greater trading convenience. In an area less visible to customers, we are also making further efficiency improvements by reviewing operations. Sony Bank is strengthening its financial position, which is the basis for the trust and confidence of our customers, so that it is capable of dealing with difficult market conditions.
July 1, 2009
Shigeru Ishii
President, Representative Director and CEO
Sony Bank Inc.
