Japan’s Asahi Mutual Life Insurance to raise foreign bond investment

April 27 2015 by InsuranceAsia News Staff

Tokyo-headquartered Japanese insurance firm Asahi Mutual Life Insurance Co has announced that it will invest JPY200bn (US$1.67bn) in foreign bonds in the fiscal year through March 2016 and reduce JPY200bn (US$1.67bn) in Japanese bonds during the same period.

Asahi Life’s move to cut its holdings of domestic bonds and invest in US bonds comes because domestic yields remain too low, said Yasuhiro Otsuka, the head of asset allocation and planning department.

About 80% of Asahi Life’s foreign bond holdings are in US debt, Otsuka added.

He stressed, however, that Asahi Life could reinvest in Japanese bonds and divest US bonds should domestic yields start rising in the coming fiscal years.

Asahi, which has total assets of about JPY5.66tr (US$47bn) as of December 2014, has total foreign debt holdings of JPY500bn (USD4.2bn) and vowed to keep the value of its Japanese stock holdings at JPY180bn (US$1.5bn).

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