Japan Life Insurers to Up Superlong-Term JGB Investments


Tokyo, Oct. 26 (Jiji Press)--Many major Japanese life insurers plan to increase their investments in domestic bonds, mainly superlong-term Japanese government bonds, in the second half of fiscal 2022 on the back of a rebound in interest rates at home.

In the six months to March 2023, eight of the country's 10 major life insurance firms--Nippon Life Insurance Co., Dai-ichi Life Insurance Co., Meiji Yasuda Life Insurance Co., Sumitomo Life Insurance Co., Taiyo Life Insurance Co., Daido Life Insurance Co., Fukoku Mutual Life Insurance Co. and Asahi Mutual Life Insurance Co.--plan to increase investments in domestic bonds from the fiscal 2022 first half, according to their asset management plans for the second-half period.

Domestic bond investments are expected to fall at Japan Post Insurance Co. <7181>, under the aegis of Japan Post Holdings Co. <6178>, because many bonds in its portfolio are set to mature during the period. Such investments are seen leveling off at Taiju Life Insurance Co.

Yields on superlong-term JGBs with a redemption period of 30 and 40 years, which had been very low reflecting the Bank of Japan's ultraeasy monetary policy, are now on a rising trend in tandem with climbs in foreign interest rates.

"With the yields (on 30-year JGBs) standing around 1.5 pct, the current investment environment is much better compared with the past few years," senior Nippon Life official Akira Tsuzuki said.

[Copyright The Jiji Press, Ltd.]

Jiji Press