Sumitomo Life: may increase foreign bond allocation if JGB yields stay low

TOKYO, April 24 Wed Apr 24, 2013 4:07am EDT

TOKYO, April 24 (Reuters) - Japan's Sumitomo Life Insurance Co may move more funds into foreign bonds for the current financial year ending in March 2014 if yields on Japanese government bonds stay at current low levels, a senior executive of the company said on Wednesday.

The country's fourth-largest private life insurance company plans to increase yen bond holdings for financial year 2013/14, although the amount of purchase may not be large as the previous year, Iwao Matsumoto, general manager of investment planning department, told a news conference.

The insurer held about 25.38 trillion yen ($255.43 billion) in its investment portfolio as of the end of December.

Financial market participants closely follow the allocation plans of Japanese life insurance companies, which collectively held 332.4 trillion yen in assets as of January, data by the Life Insurance Association of Japan showed.

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