Reference Data

Overview of FY2015 Results

* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Millions of yen
FY2014 FY2015
Sompo Japan Nipponkoa
Change Change
Net premiums written 2,181,302 + 99,108 2,218,425 + 37,122
(excl. CALI) 1,876,099 + 92,170 1,911,844 + 35,744
Loss ratio 65.6% - 0.1pt 63.7% - 1.9pt
(excl. CALI) 63.2% + 0.5pt 61.0% - 2.1pt
Net expense ratio 31.8% - 0.4pt 31.6% - 0.2pt
(excl. CALI) 33.6% - 0.6pt 33.4% - 0.2pt
Combined ratio 97.4% - 0.5pt 95.3% - 2.1pt
(excl. CALI) 96.8% - 0.1pt 94.4% - 2.4pt
Underwriting result 56,860 + 12,628 104,771 + 47,911
(excl. CALI) 60,215 + 4,784 106,354 + 46,138
Underwriting profit (loss) 45,232 + 107,802 78,284 + 33,051
Investment profit 151,599 - 41,113 108,514 - 43,084
Ordinary profit (loss) 195,134 + 77,369 178,086 - 17,048
Net income (loss) 45,059 - 4,464 126,289 + 81,230
reference Adjusted profit
Net income (loss) 45,059 - 4,464 126,289 + 81,230
+provision for catastrophic loss reserve (after tax) - 7,788 - 15,788 - 1,783 + 6,004
+provision for reserve for price fluctuation (after tax) 6,310 + 1,105 5,721 - 588
-gains/losses on sales of securities and impairment losses on securities (after tax) 45,647 - 28,263 26,447 - 19,200
-special factors (after tax) - 80,060 - 53,274 - 12,391 + 67,669
Adjusted profit 77,994 + 62,390 116,171 + 38,177

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Reference Data

Premiums
* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Direct premiums written (excl. deposit premiums on saving-type policies) Millions of yen
Sompo Japan Nipponkoa FY2014 FY2015
Amount Change % Change Amount Change % Change
Fire & allied lines 354,075 + 16,351 + 4.8% 374,928 + 20,852 + 5.9%
Marine 51,881 + 669 + 1.3% 51,072 - 808 - 1.6%
Personal Accident 184,182 + 2,109 + 1.2% 185,288 + 1,106 + 0.6%
Voluntary Automobile 1,042,755 + 30,413 + 3.0% 1,070,807 + 28,051 + 2.7%
CALI 324,060 - 1,930 - 0.6% 316,107 - 7,953 - 2.5%
Other 320,223 + 18,015 + 6.0% 328,411 + 8,187 + 2.6%
(of which, liability) (173,827) (+ 8,450) (+ 5.1%) (173,756) (- 71) (- 0.0%)
All lines 2,277,179 + 65,628 + 3.0% 2,326,616 + 49,437 + 2.2%
All lines excl. CALI 1,953,118 + 67,559 + 3.6% 2,010,508 + 57,390 + 2.9%

Net premiums written Millions of yen

Sompo Japan Nipponka FY2014 FY2015
Amount Change % Change Amount Change % Change
Fire & allied lines 323,230 + 39,578 + 14.0% 330,603 + 7,373 + 2.3%
Marine 52,547 + 6,900 + 15.1% 51,203 - 1,344 - 2.6%
Personal Accident 185,268 + 270 + 0.1% 184,231 - 1,037 - 0.6%
Voluntary Automobile 1,043,759 + 29,591 + 2.9% 1,070,169 + 26,409 + 2.5%
CALI 305,203 + 6,937 + 2.3% 306,580 + 1,377 + 0.5%
Other 271,293 + 15,829 + 6.2% 275,636 + 4,343 + 1.6%
(of which, liability) (156,995) (+ 6,620) (+ 4.4%) (155,256) (- 1,738) (- 1.1%)
All lines 2,181,302 + 99,108 + 4.8% 2,218,425 + 37,122 + 1.7%
All lines excl. CALI 1,876,099 + 92,170 + 5.2% 1,911,844 + 35,744 + 1.9%

(reference) YOY change of number of cars and unit premium of auto insurance (March 31, 2016)
* Performance evaluation basis
Sompo Japan Nipponkoa
Number of
cars Unit Premium
insured premium

Non-fleet - 0.6% + 2.6% + 2.0%

Fleet + 0.1% + 2.9% + 3.1%
Total - 0.5% + 2.7% + 2.2%

2/17
Reference Data

Claims paid/Loss Ratio

* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Net claims paid Millions of yen Natural Disasters Millions of yen

Sompo Japan Nipponkoa FY2014 FY2015 Sompo Japan Nipponkoa FY2014 FY2015
Net loss Net claims Net loss Net claims
Amount Change Amount Change occurred paid occurred paid
Fire & allied lines 224,113 + 46,265 218,518 - 5,595 Fire & allied lines 28,698 24,331 76,868 69,461
Marine 28,769 + 3,291 32,733 + 3,964 Marine --- --- --- ---
Personal Accident 101,873 + 41 100,507 - 1,366 Personal Accident 15 15 42 40
Voluntary Automobile 581,297 + 5,728 567,681 - 13,616 Voluntary Automobile 3,069 3,022 5,365 5,310
CALI 225,646 - 2,470 226,127 + 480 Other 1,451 1,094 2,003 1,716
Other 143,769 + 16,561 141,925 - 1,844 Total 33,234 28,464 84,279 76,529
(of which, liability) (80,669) (+ 5,181) (76,701) (- 3,968) * Figures above are losses and claims arising from domestic natural disasters occurred
All lines 1,305,471 + 69,418 1,287,493 - 17,978 in relevant fiscal year, and do not include those occurred in previous years.
All lines excl. CALI 1,079,824 + 71,889 1,061,366 - 18,458
All lines excl. CALI, household
966,181 + 36,604 963,898 - 2,283
earthquake, natural disasters referenece Recent major natural disasters
Millions of yen
Sompo Japan Nipponkoa FY2014 FY2015
Net loss Net claims Net loss Net claims
Loss ratio (incl. adjustment expenses) occurred paid occurred paid
Sompo Japan Nipponkoa FY2014 FY2015 The Great East Japan Earthquake 42 64 18 137
L/R Change L/R Change (of which, household earthquake) --- --- --- ---
Fire & allied lines 70.9% + 6.1pt 67.5% - 3.4pt (of which, excl. household earthquake) 42 64 18 137
Marine 58.0% - 0.5pt 67.1% + 9.1pt Thai floods - 2,112 2,456 - 366 806
Personal Accident 59.2% - 1.1pt 58.1% - 1.1pt Snow damage in FY2013(note) 26,344 73,165 3,590 8,264
Voluntary Automobile 63.4% - 1.6pt 60.7% - 2.7pt Snow damage in FY2014 4,984 2,651 6,393 8,451
CALI 80.6% - 3.0pt 80.3% - 0.3pt Typhoon No.15 in FY2015 52,059 49,810
Other 56.7% + 3.0pt 55.1% - 1.5pt Typhoon No.18 in FY2015 16,528 14,324
(of which, liability) (55.1%) (+ 0.9pt) (53.2%) (- 1.9pt) Snow damage in FY2015 7,771 4,885
All lines 65.6% - 0.1pt 63.7% - 1.9pt (note) Occurred between Feb 8, 2014 and Feb 19, 2014.
All lines excl. CALI 63.2% + 0.5pt 61.0% - 2.1pt
All lines excl. CALI, household
earthquake, natural disasters 57.1% - 1.2pt 56.0% - 1.2pt

E/I Loss ratio (incl. adjustment expenses)

Sompo Japan Nipponkoa FY2014 FY2015
L/R Change L/R Change
Fire & allied lines 68.5% - 16.8pt 70.5% + 2.0pt
Marine 76.4% + 10.7pt 69.4% - 7.0pt
Personal Accident 56.0% - 5.9pt 57.8% + 1.9pt
Voluntary Automobile 62.9% - 3.6pt 60.3% - 2.6pt
Other 65.0% + 4.3pt 57.5% - 7.5pt
(of which, liability) (64.1%) (+ 4.1pt) (54.5%) (- 9.6pt)
All lines 63.8% - 4.3pt 61.6% - 2.2pt
All lines excl. natural disasters 60.2% - 0.6pt 56.5% - 3.7pt
* Household earthquake and CALI are excluded

3/17
Reference Data

Exprenses
* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Net expenses Millions of yen Company expenses Millions of yen

Sompo Japan Nipponkoa FY2014 FY2015 Sompo Japan Nipponkoa FY2014 FY2015
Amount Change Amount Change Amount Change Amount Change
Net commissions and brokerage fees 392,778 + 29,038 398,265 + 5,486 Personnel expenses 239,738 - 7,485 236,786 - 2,951
Operating, general and administrative expenses 300,868 - 6,317 302,494 + 1,626 Non-personnel expenses 180,290 - 3,001 184,890 + 4,599
Net expense 693,647 + 22,721 700,759 + 7,112 Tax and contributions 18,874 - 563 18,912 + 37
Net expense (excl. CALI) 631,039 + 20,393 638,811 + 7,772 Total company expenses 438,903 - 11,050 440,589 + 1,685
* Above figures are only for underwriting expenses.

Net Expense Ratio Company Expense Ratio

Sompo Japan Nipponkoa FY2014 FY2015 Sompo Japan Nipponkoa FY2014 FY2015
Ratio Change Ratio Change Ratio Change Ratio Change
Net commissions and brokerage fees 18.0% + 0.5pt 18.0% - 0.1pt Personnel expenses 11.0% - 0.9pt 10.7% - 0.3pt
Operating, general and administrative expenses 13.8% - 1.0pt 13.6% - 0.2pt Non-personnel expenses 8.3% - 0.5pt 8.3% + 0.1pt
Net expense 31.8% - 0.4pt 31.6% - 0.2pt Tax and contributions 0.9% - 0.1pt 0.9% - 0.0pt
Net expense (excl. CALI) 33.6% - 0.6pt 33.4% - 0.2pt Total company expenses 20.1% - 1.5pt 19.9% - 0.3pt
* Above figures are the ratio of each amount for underwriting expenses against net premiums written. * Above figures are the ratio of each amount against net premiums written.

4/17
Reference Data

Combined Ratio
* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Sompo Japan Nipponkoa FY2014 FY2015

Ratio Change Ratio Change
Loss ratio 63.2% + 0.5pt 61.0% - 2.1pt
Net expense ratio 33.6% - 0.6pt 33.4% - 0.2pt
(Company expense ratio) (13.7%) (- 1.2pt) (13.6%) (- 0.2pt)
(Commission ratio) (19.9%) (+ 0.6pt) (19.8%) (- 0.1pt)
Combined ratio 96.8% - 0.1pt 94.4% - 2.4pt
* Above figures exclude CALI.

(reference) Combined Ratio by lines

Sompo Japan Nipponkoa FY2014 FY2015

L/R E/R C/R L/R E/R C/R Change
Fire & allied lines 70.9% 40.1% 111.0% 67.5% 39.6% 107.1% - 3.8pt
Marine 58.0% 27.4% 85.4% 67.1% 27.4% 94.5% + 9.1pt
Personal Accident 59.2% 41.1% 100.2% 58.1% 41.0% 99.1% - 1.1pt
Voluntary Automobile 63.4% 31.4% 94.8% 60.7% 31.1% 91.8% - 3.0pt
CALI 80.6% 20.5% 101.1% 80.3% 20.2% 100.5% - 0.6pt
Other 56.7% 30.6% 87.3% 55.1% 31.1% 86.2% - 1.1pt
(of which, liability) (55.1%) (29.2%) (84.3%) (53.2%) (29.4%) (82.6%) (- 1.8pt)
All lines 65.6% 31.8% 97.4% 63.7% 31.6% 95.3% - 2.1pt

5/17
Reference Data

Underwriting Funds
* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Millions of yen
Sompo Japan Nipponkoa FY2014 FY2015 Change
Ordinary Reserves for Reserves for Ordinary Reserves for Reserves for Ordinary Reserves for Reserves for
Catastrophic Contingency Catastrophic Contingency Catastrophic Contingency
underwriting maturity policyholders' underwriting maturity policyholders' underwriting maturity policyholders'
loss reserve reserve loss reserve reserve loss reserve reserve
reserves*1 refund*2 dividends reserves*1 refund*2 dividends reserves*1 refund*2 dividends

Fire and allied lines*3 760,009 183,857 194 255,779 2,572 777,409 177,653 194 228,228 2,296 17,399 -6,204 --- -27,551 -275
Marine 17,409 49,985 --- --- --- 19,270 46,995 --- --- --- 1,860 -2,990 --- --- ---
Personal Accident 120,878 74,753 364 1,284,446 8,474 122,033 70,636 364 1,220,935 8,213 1,155 -4,116 --- -63,511 -260
Voluntary Automobile 302,872 64,903 --- --- --- 307,939 63,359 --- --- --- 5,066 -1,544 --- --- ---
CALI*3 403,817 --- --- --- --- 415,432 --- --- --- --- 11,615 --- --- --- ---
Other 297,457 177,351 52 55,238 403 308,465 189,701 52 54,116 429 11,008 12,350 --- -1,122 26
Total 1,902,444 550,851 611 1,595,464 11,449 1,950,550 548,346 611 1,503,279 10,939 48,105 -2,505 --- -92,184 -510
Total (excl. CALI) 1,498,627 550,851 611 1,595,464 11,449 1,535,117 548,346 611 1,503,279 10,939 36,490 -2,505 --- -92,184 -510
*1 Include reserves for maturity fund of non-saving-type insurance. Decrease of reserve that was caused by transfer of overseas policies is not included in change.
*2 Exclude reserves for maturity refund of non-saving-type insurance.
*3 Underwriting reserves of earthquake insurance and CALI are included in ordinary underwriting reserves.

Reserve for Outstanding Losses and Claims

Millions of yen
Sompo Japan Nipponkoa
FY2014 Additional FY2015 Additional YOY Change
provision for provision for
FY2015 FY2014
a) b) c) d) e)=b)-d)
Fire and allied lines 128,395 - 2,535 124,016 - 23,230 20,695
Marine 29,118 1,635 30,098 8,116 - 6,481
Personal Accident 69,725 - 1,169 68,549 - 6,566 5,396
Voluntary Automobile 413,025 - 7,542 405,460 - 12,309 4,767
CALI 89,835 - 794 89,040 1,987 - 2,781
Other 198,412 545 195,809 14,318 - 13,772
Total 928,513 - 9,860 912,975 - 17,684 7,823
Total (excl. CALI) 838,678 - 9,066 823,934 - 19,671 10,605

Total 253,754 - 11,341 237,999 1,862 - 13,203

(of which, IBNR)
* Decrease of reserve that was caused by transfer of overseas policies is not included in additional provision for FY2014.
* Decrease of reserve that was caused by transfer of overseas assumed reinsurance is not included in additional provision for FY201.

6/17
Reference Data

Catastrophic Loss Reserve

* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Catastrophic loss reserves as of March 31, 2016 Millions of yen

Sompo Japan Nipponkoa
Outstanding Net Outstanding
Reversal Provisions Ratio
Mar. 2015 provisions Mar. 2016
Fire and allied lines 183,857 52,150 45,945 - 6,204 177,653 53.9%
Marine 49,985 5,623 2,633 - 2,990 46,995 91.8%
Personal Accident 74,753 9,941 5,825 - 4,116 70,636 38.3%
Voluntary Automobile 64,903 35,884 34,340 - 1,544 63,359 5.9%
Other 177,351 1,755 14,105 12,350 189,701 68.8%
Total 550,851 105,355 102,850 - 2,505 548,346 28.7%
* Ratio = Outstanding reserves /Net premiums written (excl. household earthquake and CALI)
* Provision ratio of major lines for FY2015
Sompo Japan Nipponkoa: 3.2% for automobile group, 10.0% for fire group

Changes in reversal and provisions of catastrophic loss reserves Millions of yen

Sompo Japan Nipponkoa
Reversal Provisions
FY2014 FY2015 Change FY2014 FY2015 Change
Fire and allied lines 60,034 52,150 - 7,884 44,691 45,945 + 1,253
Marine 1,185 5,623 + 4,437 2,780 2,633 - 147
Personal Accident 11,501 9,941 - 1,559 5,814 5,825 + 10
Voluntary Automobile 61,583 35,884 - 25,699 62,614 34,340 - 28,274
Other 6,858 1,755 - 5,103 14,024 14,105 + 81
Total 141,164 105,355 - 35,808 129,925 102,850 - 27,075

7/17
Reference Data

Business Forecasts

Millions of yen
Sompo Japan Nipponkoa
FY2015(A) FY2016(E) Change % Change

Net premiums written 2,218,425 2,189,382 - 29,042 - 1.3%

(excl. CALI) 1,911,844 1,887,273 - 24,571 - 1.3%
Loss ratio 63.7% 62.6% - 1.1pt
(excl. CALI) 61.0% 59.6% - 1.4pt
Net expense ratio 31.6% 32.3% + 0.7pt
(excl. CALI) 33.4% 34.1% + 0.7pt
Combined ratio 95.3% 94.8% - 0.4pt
(excl. CALI) 94.4% 93.7% - 0.7pt
Underwriting profit (loss) 78,284 86,568 + 8,284 + 10.6%
Investment profit 108,514 121,540 + 13,025 + 12.0%
Ordinary profit (loss) 178,086 196,500 + 18,413 + 10.3%
Net income (loss) 126,289 140,000 + 13,710 + 10.9%
referenceAdjusted profit
Net income (loss) 126,289 140,000 + 13,710 + 10.9%
+provision for catastrophic loss reserve (after tax) - 1,783 24,784 + 26,568
+provision for reserve for price fluctuation (after tax) 5,721 5,744 + 22 + 0.4%
-gains/losses on sales of securities and impairment losses on securities (after tax) 26,447 44,502 + 18,055 + 68.3%
-special factors (after tax) - 12,391 --- + 12,391
Adjusted profit 116,171 126,026 + 9,854 + 8.5%

8/17
 Reference Data

Business Forecasts

Net premiums written Millions of yen

Sompo Japan Nipponkoa

FY2015(A) FY2016(E) Change % Change

Fire and allied lines 330,603 299,735 - 30,868 - 9.3%

Marine 51,203 51,773 + 570 + 1.1%
Personal Accident 184,231 185,216 + 984 + 0.5%
Voluntary Automobile 1,070,169 1,071,620 + 1,451 + 0.1%
CALI 306,580 302,109 - 4,471 - 1.5%
Other 275,636 278,926 + 3,290 + 1.2%
(of which, liability) (155,256) (153,435) (- 1,821) (- 1.2%)
All lines 2,218,425 2,189,382 - 29,042 - 1.3%
All lines (Excl. CALI) 1,911,844 1,887,273 - 24,571 - 1.3%

W/P Loss ratio Millions of yen E/I Loss ratio Millions of yen
Sompo Japan Nipponkoa Sompo Japan Nipponkoa
Net claims paid W/P Loss ratio Net loss occurred E/I Loss ratio

FY2015(A) FY2016(E) Change FY2015(A) FY2016(E) Change FY2015(A) FY2016(E) Change FY2015(A) FY2016(E) Change

Fire and allied lines 218,518 182,679 - 35,838 67.5% 62.5% - 5.0pt Fire and allied lines 215,983 165,126 - 50,856 70.5% 56.3% - 14.2pt
Marine 32,733 29,149 - 3,583 67.1% 59.5% - 7.6pt Marine 34,369 28,517 - 5,852 69.4% 58.3% - 11.1pt
Personal Accident 100,507 99,533 - 974 58.1% 57.4% - 0.8pt Personal Accident 99,337 100,027 + 690 57.8% 58.9% + 1.1pt
Voluntary Automobile 567,681 557,019 - 10,661 60.7% 59.8% - 0.9pt Voluntary Automobile 560,138 558,642 - 1,496 60.3% 60.0% - 0.4pt
CALI 226,127 224,686 - 1,440 80.3% 81.1% + 0.8pt Other 142,470 155,908 + 13,437 57.5% 60.2% + 2.8pt
Other 141,925 149,673 + 7,748 55.1% 57.3% + 2.2pt (of which, liability) (74,804) (83,873) (+ 9,069) (54.5%) (58.8%) (+ 4.4pt)
(of which, liability) (76,701) (81,750) (+ 5,048) (53.2%) (57.2%) (+ 4.0pt) All lines 1,052,300 1,008,222 - 44,077 61.6% 59.3% - 2.3pt
All lines 1,287,493 1,242,743 - 44,750 63.7% 62.6% - 1.1pt * Excl. household earthquake and CALI
All lines (Excl. CALI) 1,061,366 1,018,056 - 43,309 61.0% 59.6% - 1.4pt

9/17
Reference Data

Business Forecasts - Expenses

Net Expense Ratio Millions of yen

Sompo Japan Nipponkoa
Net expense amount Net Expense Ratio

FY2015(A) FY2016(E) Change FY2015(A) FY2016(E) Change

Net commissions and brokerage fees 398,265 394,227 - 4,037 18.0% 18.0% + 0.1pt
Operating, general and administrative 302,494 311,995 + 9,500 13.6% 14.3% + 0.6pt
expenses related to underwriting
Total 700,759 706,223 + 5,463 31.6% 32.3% + 0.7pt
* Above figures are only for underwriting expenses.
* "Expense ratio" is the ratio of the each amount for underwriting expenses against net premiums written.

Company Expense Ratio Millions of yen

Sompo Japan Nipponkoa
Company expense amount Company Expense Ratio

FY2015(A) FY2016(E) Change FY2015(A) FY2016(E) Change

Personnel expenses 236,786 235,774 - 1,012 10.7% 10.8% + 0.1pt

Non-personnel expenses 184,890 197,398 + 12,508 8.3% 9.0% + 0.7pt
Tax and contributions 18,912 19,082 + 170 0.9% 0.9% + 0.0pt
Total 440,589 452,255 + 11,666 19.9% 20.7% + 0.8pt
* Above figures are the ratio of each amount against net premiums written.

10/17
Reference Data
Investment Asset portfolio
* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Mark to market baisis, millions of yen

Sompo Japan Nipponkoa
as of March 31, 2016 Saving-type account General account Total
Proportion Proportion Proportion
Deposits 38,855 3.0% 280,756 5.5% 319,612 5.0%
Call Loans --- --- --- --- --- ---
Receivables under resale agreements 9,999 0.8% 67,999 1.3% 77,998 1.2%
Monetary receivables bought 10,234 0.8% 1,148 0.0% 11,383 0.2%
Money trusts --- --- 114,639 2.3% 114,639 1.8%
Securities 890,158 68.7% 4,030,396 79.1% 4,920,555 77.0%
Domestic bonds 790,023 61.0% 916,527 18.0% 1,706,550 26.7%
Domestic stocks --- --- 1,489,572 29.2% 1,489,572 23.3%
Foreign securities 100,135 7.7% 1,578,908 31.0% 1,679,044 26.3%
Bonds (91,025) (7.0%) (784,912) (15.4%) (875,937) (13.7%)
(of which, yen-denominated (78,314) (6.0%) (589,356) (11.6%) (667,670) (10.5%)
Others (9,110) (0.7%) (793,996) (15.6%) (803,107) (12.6%)
(of which, yen-denominated --- --- (76,577) (1.5%) (76,577) (1.2%)
Other securities --- --- 45,387 0.9% 45,387 0.7%
Loans 345,753 26.7% 333,269 6.5% 679,023 10.6%
Land and buildings --- --- 265,333 5.2% 265,333 4.2%
Total investment assets 1,295,003 100.0% 5,093,543 100.0% 6,388,546 100.0%
Change from previous FY end -84,772 -252,230 -337,003

Investment Profit

Millions of yen
Sompo Japan Nipponkoa
FY2014 FY2015 FY2016(E)
Change Change
Net interest and dividend income 67,779 64,096 - 3,683 63,006 - 1,089
(Interest and dividend income) (113,855) (109,938) (- 3,917) (105,135) (- 4,802)
(Investment income on deposit premium) (- 46,075) (- 45,841) (+ 233) (- 42,128) (+ 3,712)
Gain on money trusts 6,090 5,673 - 416 2,041 - 3,631
Gain on trading securities --- 3 +3 --- -3
Realized gain on security sales 70,950 60,584 - 10,365 63,981 + 3,396
(Realized gain on domestic stock sales) (55,451) (50,755) (- 4,696) (61,919) (+ 11,164)
Realized gain on security redemption 690 243 - 446 - 2,639 - 2,883
Impairment losses on securities - 919 - 28,784 - 27,865 - 2,000 + 26,784
(Impairment loss on domestic stocks) (- 118) (- 21,409) (- 21,290) (- 2,000) (+ 19,409)
Gain on derivative products - 4,561 5,649 + 10,210 - 5,212 - 10,861
FX gains/losses 13,583 5,500 - 8,082 2,363 - 3,137
Other investment income - 2,013 - 4,451 - 2,438 --- + 4,451
Total investment profit 151,599 108,514 - 43,084 121,540 + 13,025

11/17
Reference Data

Investment Yield (Sompo Japan Nipponkoa)

* The figures prior to September 1, 2014 are the sum of Sompo Japan and Nipponkoa.

Breakdown of interest and dividend income Millions of yen

FY2014 FY2015

Income Income Income Income

yield yield
Cash and deposits 51 0.02% 16 0.01%
Call loans 62 0.06% 49 0.08%
Receivables under resale agreements 95 0.09% 84 0.07%
Monetary receivables bought 316 2.19% 258 2.18%
Securities 100,220 2.62% 96,786 2.52%
Domestic bonds 21,661 1.33% 20,536 1.32%
Domestic stocks 32,215 4.85% 34,412 5.35%
Foreign securities 43,129 2.86% 40,046 2.51%
Other securities 3,214 11.10% 1,791 4.64%
Loans 7,203 1.25% 6,776 1.12%
Land and buildings 4,843 1.70% 4,923 1.76%
Total investment assets 112,793 2.19% 108,895 2.13%
Other 1,061 1,042
Total 113,855 109,938

Investment yield Millions of yen

FY2014 FY2015
Profit Profit Profit Profit
(realized Realized (mark to MTM yield (realized Realized (mark to MTM yield
yield yield
basis) market) basis) market)
Cash and deposits 1,743 0.70% 1,743 0.70% - 1,092 - 0.51% - 1,092 - 0.51%
Call loans 62 0.06% 62 0.06% 49 0.08% 49 0.08%
Receivables under resale agreements 95 0.09% 95 0.09% 84 0.07% 84 0.07%
Monetary receivables bought 316 2.19% 314 2.04% 258 2.18% 274 2.15%
Money trusts 6,098 7.39% 16,198 18.30% 5,673 5.25% - 9,481 - 7.69%
Securities 173,398 4.54% 636,241 13.05% 136,056 3.55% - 202,995 - 3.79%
Loans 7,252 1.26% 7,252 1.26% 5,657 0.93% 5,657 0.93%
Land and buildings 4,843 1.70% 4,843 1.70% 4,923 1.76% 4,923 1.76%
Derivatives - 4,561 - 3,602 5,649 8,890
Other 8,425 8,425 - 2,903 - 2,903
Total 197,674 3.77% 671,576 10.66% 154,356 2.94% - 196,593 - 2.90%

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Reference Data

Sales Performance by Distribution Channel

Upper row: Amount in millions of yen

Premium earned by distribution channel (performance evaluation basis, excl. savings-type policies) Lower row: %Change
Sompo Japan Nipponkoa Fire Personal Voluntary CALI Miscellaneous Marine Total
Accident Automobile
Agents
as of March 31, 2016 (Sales force)
Proportion

Financial institutions 1,192 61,424 21,358 32,260 4,471 22,263 3,036 144,815 6.3%
+ 6.0% + 3.8% + 0.5% - 1.5% + 1.6% - 1.7% + 3.3%
Corporate 4,649 79,854 37,231 135,689 18,028 116,041 28,805 415,650 17.9%
+ 11.6% + 0.6% + 0.9% + 1.3% + 7.7% - 5.3% + 4.2%
Car dealers 2,220 3,241 643 201,082 114,914 1,945 493 322,319 13.9%
+ 20.8% - 1.1% + 6.0% - 2.3% + 3.1% + 5.0% + 3.0%
Car repair shops and 35,733 8,666 1,684 151,553 127,160 4,067 578 293,711 12.7%
other automobile related + 14.1% - 1.9% + 3.3% + 2.7% + 3.3% + 5.8% + 3.3%
Professionals 10,398 127,820 33,145 372,788 17,673 51,524 5,222 608,174 26.3%
+ 10.4% + 0.8% + 1.3% - 1.7% + 4.6% + 0.8% + 3.2%
Other 9,225 90,533 70,889 183,916 34,432 117,131 34,929 531,833 23.0%
- 1.2% + 1.0% + 0.3% - 17.1% + 0.9% + 4.7% - 0.8%
Total 63,417 371,540 164,952 1,077,291 316,680 312,974 73,066 2,316,506 100.0%
+ 7.0% + 1.2% + 2.2% - 2.1% + 4.0% + 0.0% + 2.4%

Financial Guarantee Insurance

as of March 31, 2016, Billions of yen, US/JPY=112.68

Insured Amount

Insured Gains/Losses
Categories Direct Treaty Outstanding Amount for FY2015
Insurance Reinsurance Total Loss Net of Loss *5
*3 *4 Reserve Reserves

Global RMBS *1 - 4.8 4.8 0.3 4.4 0.3

ABS Global ABS *2 1.1 3.4 4.5 0.8 3.7 0.0
ABS Total 1.1 8.2 9.3 1.2 8.1 0.3
Public Finance - 64.6 64.6 0.4 64.2 -0.6
Total 1.1 72.9 74.0 1.6 72.4 -0.2
*1 RMBS: Assets backed securities where underlying assets are residential mortgages.
*2 Global ABS are mainly related to corporate credit (e.g., leasing receivables).
*3 Direct Insurance : Insurance to cover monoline guaranteed note.

*4 Treaty Reinsurance is a portfolio-based reinsurance where certain parts of policies underwritten by a primary insurer are
ceded automatically to the reinsurer, Sompo Japan Nipponkoa , in accordance with the conditions agreed by the primary insurer
and the reinsurer.

*5 Total amount of 0.2 billion yen loss is comprised of 0.07 billion yen of mainly loss payments, 0.19 billion yen of change of loss
reserve. Financial guarantee insurance is not supposed to book mark-to-market unrealized gains/losses through income
statement as it is an insurance policy.

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Reference Data

Saison Automobile and Fire, Sonpo 24

Profit and Loss Millions of yen

Saison Automobile and Fire Sonpo 24
FY2015 FY2015
FY2014 FY2014
change change
(+) Net premiums written (22,359) (27,439) (+ 5,080) (14,163) (13,725) (- 437)
(-) Net claims paid (12,350) (15,490) (+ 3,140) (8,090) (7,315) (- 774)
(-) Loss adj. exp. / underwriting exp. (13,658) (14,003) (+ 345) (5,783) (5,715) (- 67)
(+) Underwriting balance :a1 - 3,649 - 2,054 + 1,594 289 694 + 405
(-) Provision for reserves for outstanding claims :a2 912 2,502 + 1,589 1,080 - 116 - 1,196
(-) Provision for underwriting reserves :a3 2,459 1,806 - 652 181 - 145 - 327
(+) Other balances :a4 - 492 - 315 + 176 11 12 +1
(+) Underwriting profit :A - 7,513 - 6,678 + 834 - 961 968 + 1,930
(+) Investment profit :B 149 103 - 45 19 4 - 14
(+) Other ordinary income/loss :C - 24 65 + 89 -2 -2 +0
Ordinary profit (A+B+C) :D - 7,388 - 6,509 + 878 - 945 970 + 1,916
(+) Extraordinary gains/losses :E - 10 -9 +0 -8 - 10 -1
(-) Income taxes (incl. deferred tax) :F 8 10 +1 3 101 + 97
Net income (D+E-F) - 7,406 - 6,529 + 877 - 958 858 + 1,817

Principal Indicators
Saison Automobile and Fire Sonpo 24
FY2015 FY2015
FY2014 FY2014
change change
Number of policies 405,572 515,138 + 109,566 295,755 285,872 - 9,883
Loss ratio 63.5% 64.4% + 0.9pt 64.5% 61.1% - 3.5pt
Net expense ratio 52.8% 43.1% - 9.7pt 33.4% 33.9% + 0.4pt

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Reference Data

Life Insurance - Main Indicators

New business Millions of yen, ten thousand policies

Himawari Life FY2014 FY2015
Amount Change % Change Amount Change % Change
Number of policies of new business 43 +9 + 28.5% 46 +2 + 6.4%
Amount of new business 2,405,562 - 270,719 - 10.1% 2,275,597 - 129,965 - 5.4%
(Personal 2,383,573 (- 243,946) (- 9.3%) 2,234,761 (- 148,812) (- 6.2%)
(Personal pension) 5,121 (- 2,366) (- 31.6%) 5,551 (+ 429) (+ 8.4%)
(Group) 16,867 (- 24,406) (- 59.1%) 35,284 (+ 18,417) (+ 109.2%)
(Group pension) --- --- --- --- --- ---
Annualized premium 35,611 + 5,114 + 16.8% 40,309 + 4,698 + 13.2%
(Personal) 35,419 (+ 5,214) (+ 17.3%) 40,101 (+ 4,681) (+ 13.2%)
(Personal pension) 191 (- 99) (- 34.3%) 208 (+ 16) (+ 8.9%)
(of which, third sector) 17,001 (+ 4,978) (+ 41.4%) 20,418 (+ 3,417) (+ 20.1%)

Business in force Millions of yen, ten thousand policies

Himawari Life FY2014 FY2015
Amount Change % Change Amount Change % Change
Number of policies of business in force 348 + 20 + 6.1% 372 + 24 + 7.0%
Amount of business in force 24,157,489 + 769,543 + 3.3% 24,471,157 + 313,668 + 1.3%
(Personal 20,768,556 (+ 804,261) (+ 4.0%) 21,374,862 (+ 606,305) (+ 2.9%)
(Personal pension) 274,547 (- 6,702) (- 2.4%) 267,331 (- 7,215) (- 2.6%)
(Group) 3,114,385 (- 28,016) (- 0.9%) 2,828,963 (- 285,421) (- 9.2%)
(Group pension) --- --- --- --- --- ---
Annualized premium 317,465 + 8,957 + 2.9% 332,859 + 15,393 + 4.8%
(Personal) 298,890 (+ 8,001) (+ 2.8%) 313,803 (+ 14,912) (+ 5.0%)
(Personal pension) 18,574 (+ 956) (+ 5.4%) 19,055 (+ 481) (+ 2.6%)
(of which, third sector) 119,057 (+ 5,533) (+ 4.9%) 129,561 (+ 10,503) (+ 8.8%)

EVMCEV Millions of yen

Himawari Life FY2014 FY2015
Amount Change Amount Change
MCEV(FY end) 784,432 + 34,066 700,094 - 84,337
(Adjusted net worth) 285,483 (+ 83,748) 436,381 (+ 150,897)
(Value in force) 498,948 (- 49,681) 263,713 (- 235,235)
(of which, new business value 35,296 (- 11,044) 12,342 (- 22,954)

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Reference Data

Life Insurance - Profit and Loss

Profit and Loss Millions of yen Millions of yen

Himawari Life FY2015 FY2016(E)
FY2014
Change % Change Change % Change
(+) Income from insurance premiums :a1 380,741 396,448 + 15,707 +4.1%
(-) Insurance claims and other payments :a2 184,849 180,817 - 4,032 -2.2%
(-) Operating expenses :a3 90,309 94,773 + 4,464 +4.9%
(-) Provision for outstanding claims :a4 2,241 3,162 + 920 +41.1%
(-) Provision for underwriting reserves :a5 119,927 133,027 + 13,100 +10.9%
(+) Net interest and dividend income :a6 38,028 40,209 + 2,181 +5.7%
(+) Other ordinary income and expenses :a7 699 - 2,963 - 3,662 -523.7%
Basic profit :A 22,141 21,914 - 226 -1.0% 14,253 - 7,661 -35.0%
(+) Gains/losses on security sales :b1 1,948 2,658 + 710 +36.4%
(-) Impairment losses on securities :b2 --- --- --- ---
(+) Other capital gains/losses :b3 - 249 - 495 - 245
Capital gain :B 1,698 2,163 + 464 +27.3%
(-) Provision for contingency reserves :c1 1,239 1,505 + 265 +21.5%
(+) Other nonrecurrent item :c2 -5 -5 -0
Nonrecurrent item :C - 1,245 - 1,511 - 266
Ordinary profit (A+B+C) :P 22,594 22,565 - 28 -0.1% 14,862 - 7,702 -34.1%
(+) Extraordinary gains/losses :D - 1,819 - 898 + 920
(-) Provision for policyholders' dividend reserve :E 4,276 4,275 -0 -0.0%
(-) Income taxes (incl. deferred tax) :F 6,770 5,775 - 995 -14.7%
Net income (P+D-E-F) 9,727 11,616 + 1,888 +19.4% 6,500 - 5,116 -44.0%

Total Assets Millions of yen

Himawari Life FY2015
FY2014
Change
Total assets 2,278,147 2,438,055 + 159,907

Net Assets Millions of yen

Himawari Life FY2015
FY2014
Change
Net Assets 128,626 153,689 + 25,063

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Reference Data

Overseas Insurance Business

Millions of yen
Net premiums written Net income

Companies FY2014 FY2015 Change 2016(E) Change FY2014 FY2015 Change FY2016(E) Change
North America SJ America 17,826 22,076 + 4,249 22,717 + 640 2,192 4,440 + 2,247 1,754 - 2,686

Europe SJNK Europe+NK Europe 4,737 4,528 - 209 1,301 - 3,226 306 605 + 299 55 - 549
Sompo Canopius 86,691 127,148 + 40,456 147,715 + 20,567 9,894 7,694 - 2,199 6,116 - 1,577
Europe Total 91,429 131,677 + 40,247 149,017 + 17,340 10,200 8,300 - 1,900 6,172 - 2,127

Turkey SJ Sigorta 22,810 30,269 + 7,459 35,925 + 5,656 2,239 1,663 - 575 2,033 + 369
Singapore Sompo Singapore 9,564 8,475 - 1,089 7,338 - 1,136 915 1,054 + 139 614 - 440
Malaysia Berjaya Sompo 11,822 10,624 - 1,197 12,974 + 2,349 1,828 1,650 - 178 1,090 - 559
China SJNK China+NK China 9,143 6,610 - 2,533 6,671 + 61 420 - 569 - 989 87 + 656
Hongkong SJNK Hongkong 4,092 4,157 + 65 3,646 - 510 202 443 + 240 449 +6
India Universal Sompo 2,533 2,516 - 16 3,584 + 1,067 115 204 + 89 123 - 80
Asia & Middle East Total 59,966 62,653 + 2,687 70,141 + 7,487 5,721 4,447 - 1,273 4,399 - 48

Brazil Yasuda Maritima 122,375 77,931 - 44,444 98,187 + 20,255 555 2,140 + 1,585 1,829 - 311

Total 291,598 294,339 + 2,740 340,063 + 45,724 18,669 19,329 + 659 14,154 - 5,174
* Net premiums written of subsidiaries and affiliates reflect holding shares of each company.
This treatment does not coincide with financial statements.
The net income figures also have been adjusted to reflect shareholdings and other factors.

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