Press Release
Sony Life's Capital Increased through Allocation of New Shares
May 16, 2008
Sony Financial Holdings Inc.
Sony Life Insurance Co., Ltd.
At a meeting held today, the Board of Directors of Sony Financial Holdings ("SFH") resolved to implement a ¥10.0 billion capital increase of its wholly owned subsidiary, Sony Life Insurance Co., Ltd. ("Sony Life").
Since its commencement of operations, Sony Life has steadily expanded its operations through the sale of life insurance centered on its Lifeplanners (sales employees) and Partners (independent agencies). In August 2007, Sony Life established AEGON Sony Life Planning Co., Ltd.—a 50-50 joint venture with AEGON International B.V.—to prepare for the establishment of a joint life insurance company. The aim of this company is to expand Sony Life's business in individual annuity products in a business environment characterized by a declining birthrate and aging population. Once the new company receives its life insurance business license to satisfy Insurance Business Law requirements, Sony Life's capital will be increased through the allocation of new shares to SFH. The resulting ¥10.0 billion capital increase will be used to launch the joint business.
The SFH Group will continue striving to raise its corporate value by enabling each Group company to provide quality products and services to its customers.
1. New shares to be allocated to SFH
5,000,000 common shares
2. Payment
¥10.0 billion (¥2,000 per share)
3. Increase in common stock
¥5.0 billion
4. Change in Sony Bank capital structure
Since its commencement of operations, Sony Life has steadily expanded its operations through the sale of life insurance centered on its Lifeplanners (sales employees) and Partners (independent agencies). In August 2007, Sony Life established AEGON Sony Life Planning Co., Ltd.—a 50-50 joint venture with AEGON International B.V.—to prepare for the establishment of a joint life insurance company. The aim of this company is to expand Sony Life's business in individual annuity products in a business environment characterized by a declining birthrate and aging population. Once the new company receives its life insurance business license to satisfy Insurance Business Law requirements, Sony Life's capital will be increased through the allocation of new shares to SFH. The resulting ¥10.0 billion capital increase will be used to launch the joint business.
The SFH Group will continue striving to raise its corporate value by enabling each Group company to provide quality products and services to its customers.
1. New shares to be allocated to SFH
5,000,000 common shares
2. Payment
¥10.0 billion (¥2,000 per share)
3. Increase in common stock
¥5.0 billion
4. Change in Sony Bank capital structure
| Before increase | After increase | |
|---|---|---|
| Sony Life shares issued and outstanding |
6,500,000 shares | 7,000,000 shares |
| Sony Life's common stock held by SFH | 6,500,000 shares | 7,000,000 shares |
| Sony Life's shareholder ownership by SFH |
100% | 100% |
| Sony Life's common stock | ¥65.0 billion | ¥70.0 billion |
5. Payment date
May 23, 2008
Note: This is an English-language summary of a Japanese announcement made by Sony Financial Holdings and Sony Life on May 16, 2008. The summary was prepared by Sony Financial Holdings solely for the convenience of non-Japanese readers.
