Sony 2005 Annual Report Download - page 22

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20 Sony Corporation
Financial Services
http://www.sony.co.jp/money/
Sony Financial Holdings
In April 2004, Sony established Sony Financial Holdings Inc. (SFH) to oversee the
operations of Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and
Sony Bank Inc. With this move, SFH became Japan’s first financial holding company
to integrate insurance and banking institutions under one umbrella.
In the fiscal year ended March 31, 2005, its first year of operation, SFH strengthened
tie-ups among the three companies in the provision and delivery of products and ser-
vices, complementing the existing tie-ups in such areas as the provision of automobile
insurance and group credit life insurance. In June 2004, Sony Bank launched sales of
Sony Life’s pension insurance policies through its web site MONEYKit. In October
2004, Sony Assurance began to offer a fire insurance policy limited to customers taking
out Sony Bank loans, while in December 2004 Sony Life’s highly trained life insurance
professionals, Lifeplanners, began introducing Sony Bank’s housing loans.
Recognizing the importance of maintaining financial soundness for the protection
of policyholders and depositors, SFH took initiatives in reinforcing risk management
and compliance systems for the entire SFH Group. In June 2004, SFH took steps to
enhance Sony Bank’s financial condition, injecting into the bank ¥10.0 billion equity
with the proceeds of a third-party allotment of SFH shares to Sony.
In the fiscal year ending March 31, 2006, SFH will continue to reinforce the SFH
Group’s synergies and bolster risk management and compliance systems, as well as
prepare for its initial public offering, which is being targeted to occur within the fiscal
year ending March 31, 2007.
Sony Life
Sony Life, by enforcing needs-based sales solutions through its Lifeplanners (sales
employees) and Partners (independent agents), provides optimal protection that best
matches the needs of each customer, as well as comprehensive after-sales services
for policyholders.
In May 2004, Sony Life introduced an optional feature for its existing family income
insurance policy, covering death and serious disability, which expands coverage to
include other specified disabilities and conditions requiring nursing care. Sony Life
also enhanced its lineup of services with the launch of a special agreement exempt-
ing policyholders from future premium payments if they fall victim to any of three major
illnesses—cancer, acute myocardial infarction and/or stroke—or develop certain
disabilities, including conditions that necessitate nursing care.
In the fiscal year ended March 31, 2005, Sony Life’s results continued to improve
steadily. The amount of individual life insurance and annuity policies in force increased
6%, to ¥27,823.4 billion, and the solvency margin, which reflects a life insurance com-
pany’s ability to pay claims and other benefits in unforeseen events, was 1,317.1%,
indicating an extremely high level of stability.
Sony Assurance
Sony Assurance has sold non-life insurance products using direct marketing via
telephone and the Internet since its operations began. Sony Assurance offers risk-
segmented automobile insurance and medical insurance, and aims to provide
carefully tailored policies with reasonable premiums.
In the fiscal year ended March 31, 2005, Sony Assurance offered a new discount
option to automobile insurance policyholders based on annually traveled distance, an
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