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TABLE-Japan insurers' plan to step up foreign bond investment in 2017/18
April 28, 2017 / 4:49 AM / 7 months ago

TABLE-Japan insurers' plan to step up foreign bond investment in 2017/18

    TOKYO, April 28 (Reuters) - Most Japanese life insurers plan to increase foreign bond
investments in the year to March as yields on Japanese government bonds still remain too low for
them.
    Following is a summary of the investment plans of Japan's biggest life insurance companies
for the financial year to March 2018, based on interviews with Reuters and news conferences this
month. For stories on each company's investment plans, see         

FOREIGN BONDS
----------------------------------------------------------------------------------------
Nippon Life    to increase US corporate, mortgage bonds without FX-hedging, European bonds 
Dai-ichi       to decide based on FX and yield levels, may increase unhedged bonds
Meiji Yasuda   to increase holdings overall, to up unhedged bonds if yen strengthens
Sumitomo       to increase FX-hedged bonds, may buy unhedged bonds when dollar is cheap
Mitsui         to reduce holdings of FX-hedged bonds;to increase unhedged bonds,credit products
Taiyo          to slightly increase holdings
Daido          to further increase holdings after buying Y220 bln last FY
Fukoku         to create a Y500 bln fund to invest mainly in foreign credit over next 5 years 
Asahi          to increase USD-denominated debt, trim FX-hedging due to hefty costs
Japan Post     to increase both FX-hedged and unhedged bonds 
    
JAPAN BONDS
---------------------------------------------------------------
Nippon Life    to trim overall holdings, buy super-long JGBs if yields rise to 1 pct or higher
Dai-ichi       to reduce holding of JGBs, increase credit products 
Meiji Yasuda   to trim overall holdings, to increase corporate bonds
Sumitomo       to curb investment in super-long JGBs, increase corporate bonds
Mitsui         to reduce holdings overall but increase credit products
Taiyo          to keep holdings steady, to buy if yields rise
Daido          to maintain holdings after buying Y140 bln last FY
Fukoku         to cut Y40 bln
Asahi          to reduce holdings, but yen-denominated debt to remain at core of portfolio
Japan Post     to reduce holdings, but to buy some amount 

JAPAN STOCKS
---------------------------------------------------------------
Nippon Life    to keep holdings steady, may buy when valuation is cheap
Dai-ichi       to control holdings flexibly depending on market levels
Meiji Yasuda   to keep holdings steady
Sumitomo       to keep holdings steady 
Mitsui         to keep holdings steady
Taiyo          to slightly increase holdings
Daido          to increase holdings after buying Y25 bln last FY
Fukoku         not investing any
Asahi          to increase holdings by Y10 bln in FY2017
Japan Post     to increase holdings 

FOREIGN SHARES, ALTERNATIVE INVESTMENTS
---------------------------------------------------------------
Nippon Life    to increase foreign stocks, including infrastructure funds and venture capitals
Dai-ichi       to increase foreign stocks, alternatives and real estates
Meiji Yasuda   to increase foreign shares, to keep real estate steady
Sumitomo       to maintain foreign stocks holdings steady 
Mitsui         to keep real estate investment flat
Taiyo          to slightly increase foreign shares and alternative investments
Daido          to increase foreign stocks after selling Y20 bln last FY
Fukoku         to invest Y30 bln in foreign stocks
Asahi          to step up investment in alternative assets with "medium risk/return" profile
Japan Post     to increase foreign stocks and various alternative assets

EXPECTED MARKET RANGES
---------------------------------------------------------------
                 USD/JPY      EUR/JPY       NIKKEI         JGB 10-yr      US 10-yr
Nippon Life     Y100 - 120   Y110 - 130   17,000 - 22,000  -0.2 to 0.2%   2.0 - 3.0%
Dai-ichi        Y100 - 120   Y105 - 135   16,000 - 22,000  -0.2 to 0.4%   2.0 - 3.0%
Meiji Yasuda    Y101 - 121   Y107 - 128   17,000 - 21,000  -0.1 to 0.2%   2.0 - 3.0%
Sumitomo        Y100 - 125   Y110 - 135   17,000 - 24,000  -0.2 to 0.2%   2.0 - 3.0%
Mitsui          Y111 - 121   Y113 - 128   19,200 - 21,700  -0.1 to 0.2%   2.4 - 3.2%
Taiyo           Y100 - 125   Y105 - 135   17,000 - 22,000  -0.1 to 0.1%   1.8 - 3.2%
Daido           Y 105 -125   Y110 - 135   17,000 - 22,500  -0.1 to 0.2%   2.0 - 2.9%
Fukoku          Y 100 - 120  Y110 - 130   17,500 - 21,000  -0.1 to 0.15%  2.3 - 2.9%
Asahi           Y105 - 120   Y112 - 128   16,000 - 21,000   0.0 to 0.2%   2.0 - 2.8%
Japan Post      Y105 - 125   Y110 - 130   17,000 - 22,000  -0.1 to 0.5%   2.2 - 3.0%

 (Reporting by Hideyuki Sano, Shinichi Saoshiro, Tomo Uetake, Ayai Tomisawa, Taiga Uranaka and
Lisa Twaronite)
  

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