October 29, 2019 / 9:10 AM / 15 days ago

TABLE-Japan insurers' investment plans for half year to March 2020

    TOKYO, Oct 29 (Reuters) - Following is a summary of the investment plans of Japan's biggest
life insurance companies for the half year through March 2020, based on interviews with Reuters
and news conferences this month. For stories on each company's investment plans, see         .

FOREIGN BONDS
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Nippon Life    To increase holdings of unhedged foreign bonds, may buy dollar if nears 100 yen
Dai-ichi       Stance on foreign bonds depends on currency, interest rate levels
Meiji Yasuda   To slightly increase FX-hedged bonds, to maintain unhedged bonds flat
Sumitomo       To increase holdings without FX hedge, maintain holdings with hedge flat
Taiju          To cut FX-hedged bonds slightly, increase unhedged bonds by about Y110 bln
Taiyo          Likely to keep holdings flat after increase in H1, FX hedge ratio to stay flat
Daido          To increase holdings but the pace likely to slow from H1
Fukoku         To raise holdings by 20 bln yen
Asahi          To keep holdings flat, stance on currency hedge depends on market conditions 
Japan Post     To reduce FX-hedged bonds and increase unhedged bonds 

JAPAN BONDS
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Nippon Life    To increase holdings but JGBs not attractive unless 30-yr yield rises to 0.8-1.0%
Dai-ichi       To keep holdings steady, expects JGB yields to remain low
Meiji Yasuda   To slightly increase holdings with focus on credit assets that offer yields
Sumitomo       To increase holdings by less than 290 bln yen
Taiju          To increase holdings a tad; focus on 30-yr JGBs, subordinated bank debts
Taiyo          Likely to keep holdings flat after increase in H1
Daido          To keep holdings steady
Fukoku         To cut by 50 bln yen
Asahi          To reduce holdings by 20 bln yen
Japan Post     To reduce holdings overall, may buy if yields rise sharply 

JAPAN STOCKS
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Nippon Life    Expects holdings to remain flat
Dai-ichi       To reduce holdings from a risk control point of view
Meiji Yasuda   To maintain holdings flat after small reduction in H1
Sumitomo       To increase holdings by about Y50 bln or more
Taiju          To keep holdings steady
Taiyo          To increase slightly after cut in H1
Daido          To keep holdings steady or reduce slightly after increase in H1
Fukoku         To raise by 60 bln yen
Asahi          To maintain holdings flat
Japan Post     To increase holdings as market relatively cheap compared to global peers

FOREIGN SHARES, ALTERNATIVE INVESTMENTS
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Nippon Life    To increase alternative investments, incl. real estate & infrastructure via funds
Dai-ichi       To continue increasing alternative investments, including PE and real estates
Meiji Yasuda   To reduce foreign stock holdings
Sumitomo       To increase holdings of foreign stocks, funds by 50 bln yen or more
Taiju          To allocate 10 bln yen in new areas such as PE, infrastructure
Taiyo          To slightly increase foreign stocks, to boost alternative investments
Daido          To keep holdings of foreign shares flat to lower, to increase loans
Fukoku         To keep holdings steady
Asahi          To keep foreign stocks holdings steady, raise alternative investment by Y20 bln
Japan Post     To keep foreign stock holdings flat; to increase alternative assets

EXPECTED MARKET RANGES
---------------------------------------------------------------
                 USD/JPY      EUR/JPY       NIKKEI         JGB 10-yr      US 10-yr
Nippon Life      Y95 - 115   Y110 - 130   17,000 - 25,000  -0.4 - 0.0%   1.1 - 2.1%
Dai-ichi        Y100 - 110   Y105 - 125   18,000 - 24,000  -0.4 - 0.0%   1.0 - 1.8%
Meiji Yasuda    Y102 - 111   Y113 - 125   20,000 - 23,000  -0.3 - 0.05%  1.2 - 2.0%
Sumitomo        Y100 - 115   Y110 - 130   19,000 - 24,500  -0.35- 0.1%   1.3 - 2.3%
Taiju           Y100 - 110   Y109 - 120   19,800 - 22,600  -0.3 - -0.05% 1.1 - 1.9%
Taiyo           Y103 - 112   Y113 - 122   19,000 - 24,000  -0.3 - 0.0%   1.4 - 2.0%
Daido           Y 99 - 112   Y110 - 124   18,500 - 24,000  -0.4 - -0.1%  1.1 - 2.25%
Fukoku          Y100 - 115   Y110 - 130   19,000 - 24,000  -0.3 - 0.2%   1.3 - 2.3%
Asahi           Y100 - 112   Y110 - 127   20,000 - 24,000  -0.3 - 0.0%   1.5 - 2.0%
Japan Post      Y105 - 115   Y110 - 125   21,000 - 25,000  -0.2 - 0.1%   1.6 - 2.1%

    
 (Reporting by Tokyo Markets Team, editing by Louise Heavens)
  
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