Tokyo, April 24 (Jiji Press)–Main Japanese life insurance coverage firms hope to safe steady returns primarily from funding in overseas company bonds in fiscal 2020 at a time when the worldwide coronavirus pandemic has led to rising uncertainty within the monetary markets, in response to their asset administration plans.
Assuming that the worldwide financial system will begin to get better within the second half of this 12 months or later because the unfold of the virus slows, the insurers will concentrate on bonds issued by corporations with excessive credibility.
Three of 5 main life insurers–Nippon Life Insurance coverage Co., Sumitomo Life Insurance coverage Co. and Japan Put up Insurance coverage Co. –are slated to develop overseas bond funding. Sumitomo Life mentioned that overseas bonds are a primary funding automobile for the corporate within the fiscal 12 months that began this month.
Meiji Yasuda Life Insurance coverage Co., which plans to regulate fund allocation primarily based on rate of interest and overseas exchange charge actions, mentioned that it’s going to enhance funding in company bonds to a sure extent whereas rigorously analyzing earnings and credit score rankings of potential goal corporations.
Three insurers–Nippon Life, Sumitomo Life and Dai-ichi Life Holdings Inc. –are planning to extend funding in Japanese bonds whereas home rates of interest are seen remaining low.
[Copyright The Jiji Press, Ltd.]