Japan Life Insurers Reshuffling JGB Portfolios as Yields Rise
Tokyo, Oct. 27 (Jiji Press)--Major Japanese life insurers will hurry further to reshuffle their Japanese government bond portfolios, replacing low-yielding bonds with higher-yielding ones as long-term interest rates trend upward, according to their latest asset management plans. Nine of the 10 major life insurers said in their plans for the second half of fiscal 2026 that they expect long-te...
Tokyo, October 27 - Major Japanese life insurers are intensifying efforts to restructure their portfolios of Japanese government bonds (JGBs), shifting from low-yielding securities to higher-yielding ones as long-term interest rates rise, according to their most recent asset management strategies. Nine of the 10 major life insurers disclosed in their plans for the second half of fiscal year 2026 that they anticipate long-term interest rates will exceed 3% by the end of March next year.
Many of these insurers also predict that the Bank of Japan will raise its policy rate two additional times by then. Through the adjustment of their JGB holdings, the insurers aim to boost investment returns, allowing them to provide insurance products with more attractive terms for consumers.
Daiichi Life Insurance Co. has plans to replace over 1 trillion yen worth of JGB holdings, primarily superlong-term bonds with maturities ranging from 20 to 40 years, throughout the current fiscal year. Meiji Yasuda Life Insurance Co. intends to acquire approximately 2 trillion yen in JGBs via a combination of bond switching and new investments.
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