Sony 1998 Annual Report Download - page 34

[32] Sony Corporation Annual Report 1998
Sony Life Insurance Co., Ltd. is the nucleus of the Sony Group’s insurance business. It was in
1979 that Sony and The Prudential Insurance Company of America, the largest life insurer in the
United States, formed a joint venture company. This joint venture agreement was dissolved in
1987. Since the commencement of operations in 1981, Sony Life has steadily expanded its
business with efficient provision of policies that were tailor-made to match the requirements
of each customer. During the year under review, Sony Life’s net increase in individual life
insurance-in-force was highest among all 44 life insurers operating in Japan.
Sales System
Sony Life’s sales system is distinguished most of all by the policy of using highly-qualified Life
Planner financial consultants to serve customers. As of March 31, 1998, there were approxi-
mately 3,700 such consultants at Sony Life, of whom some 2,300 at least possess the AFP
(Affiliated Financial Planner) certification from the Japan Association for Financial Planners. In
addition, all Life Planners have participated in Sony Life’s own thorough training program. This
enhances their ability to offer accurate advice regarding customers’ financial assets and house-
hold budgets as well as the management of corporate assets. Sony Life maintains an extensive
service network including 94 Life Planner branch offices, 23 regional sales offices, and 1,400
independent agencies at the end of March 1998.
Product and Asset Management Policies
The composition of Sony Life’s products reflects the needs of its customers. Rather than endow-
ment and annuity insurance and other savings-type products, the company focuses on protec-
tion-type products such as whole life and term insurance. This philosophy is linked to a prudent
asset management posture that does not pursue excessive risk to gain higher yields. Assets in
the general account are invested mainly in government and corporate bonds in order to maintain
a portfolio that ensures stable returns over the medium and long terms. During the year, almost
all of the increase in assets was invested in government and corporate bonds. And because loans
are extended solely to policyholders, Sony Life maintains a sound management structure free of
bad debts. The result is that Sony Life’s solvency margin (1,545.5%) is considerably higher than
is called for by the administrative guidelines in Japan for life insurers.
Message From Top Management
Sony Life places priority on offering services of the highest quality, primarily in the form of
effective life insurance and consulting. Our aim is to ensure the financial security and stability
of our customers. Our basic mission, therefore, is to help make dreams come true, a concept that
we share with the entire Sony Group. During the year, Sony Life increased its capital, realigned
the Board of Directors and introduced the position of corporate executive officer. Through these
means, we reinforced our financial position and further improved the soundness of Sony Life’s
operations. Sony Life also obtained an IFS (Insurer Financial Strength) rating from Standard &
Poor’s for claims paying ability. Looking ahead, we will adhere to our strategy of concentrating
on the life insurance business. As we do so, we will make effective use of funds derived from the
increase in our capital and pursue plans to enter the life insurance markets in other Asian
countries. Above all, we will redouble our efforts to make Sony Life the company of choice
for customers.
[ Insurance ]
Ken Iwaki
President and Chief
Operating Officer
Sony Life Insurance
Co., Ltd.
During the year, Sony Life
recorded the largest net
increase in individual life
insurance-in-force among all
life insurance companies
operating in Japan.
Individual Life Insurance-in-Force
(Billion ¥)
94
3,904
95 96 97 9893
3,121
92
2,537 5,514 8,118 10,922 13,506
Review of Operations