TOKYO, Oct 26 (Reuters) - Sumitomo Life Insurance Co plans to diversify its foreign-currency denominated assets as rising costs to hedge the U.S. dollar have reduced the attractiveness of Treasuries, the company said, announcing its investment strategy for the financial second-half that started in October.
The insurer said it would continue to curb investment in super-long Japanese government bonds (JGBs) given their low yields but buy in times of rising yields. It said it plans to secure extra returns from credit spreads by investing in U.S. and European corporate bonds. Sumitomo Life is Japan’s fourth-largest private-sector life insurer, managing about 31 trillion yen ($276 billion) in assets. ($1 = 112.3200 yen)
Reporting by Taiga Uranaka Additional reporting by Yoshiko Mori Editing by Chang-Ran Kim