Japan Life Insurers to Up Foreign Bond Investment


Tokyo, April 24 (Jiji Press)--Major Japanese life insurance companies hope to secure stable returns mainly from investment in foreign corporate bonds in fiscal 2020 at a time when the global coronavirus pandemic has led to growing uncertainty in the financial markets, according to their asset management plans.

Assuming that the global economy will start to recover in the second half of this year or later as the spread of the virus slows, the insurers will focus on bonds issued by firms with high credibility.

Three of five major life insurers--Nippon Life Insurance Co., Sumitomo Life Insurance Co. and Japan Post Insurance Co. <7181>--are slated to expand foreign bond investment. Sumitomo Life said that foreign bonds are a main investment vehicle for the company in the fiscal year that started this month.

Meiji Yasuda Life Insurance Co., which plans to adjust fund allocation based on interest rate and foreign exchange rate movements, said that it will increase investment in corporate bonds to a certain extent while carefully examining earnings and credit ratings of potential target firms.

Three insurers--Nippon Life, Sumitomo Life and Dai-ichi Life Holdings Inc. <8750>--are planning to increase investment in Japanese bonds while domestic interest rates are seen remaining low.

[Copyright The Jiji Press, Ltd.]

Jiji Press