Global Yield Slide Spurs Japan Insurers to Take More Risks
- Many firms plan to raise exposure to unhedged foreign bonds
- Overseas credit, alternative assets also on insurers’ radar
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The slide in global bond yields is convincing Japanese life insurers to do something they dislike -- take on more risk.
Nippon Life Insurance Co., the nation’s largest private player, and some of its peers said in briefings this week that they will put more money into overseas bonds without hedging for currency swings, to try and beef up returns. Dai-ichi Life Insurance Co. said it would boost holdings of alternative assets while reducing exposure to low-yielding local debt.