Nippon Life to Replace More Yen Bonds, Sees BOJ Rate at 1%

Nippon Life Insurance Co. will shuffle its domestic bond portfolio to cope with higher yields as it expects the Bank of Japan to raise interest rates to 1% over the next 12 months, according to the company’s new president.

The country’s biggest life insurer will “further bolster its risk management” of domestic bonds by continuing to replace those with unrealized losses to create a portfolio with higher returns, Satoshi Asahi, who took over the role Tuesday, said in an interview.