Reuters logo
TABLE-Japanese insurers investment plans in Oct-March
October 31, 2013 / 12:40 AM / 4 years ago

TABLE-Japanese insurers investment plans in Oct-March

Oct 31 (Reuters) - Japanese life insurers, which have combined assets of about 180 trillion
yen ($1.84 trillion) under management, are planning to increase domestic bond holdings in
October-March though many of them say they could shift some of funds to foreign bonds if
domestic bond yields are to stay too low.
    Below is a summary of the investment plans of Japan's biggest life insurance companies for
financial half year to March 2014, as obtained by Reuters in interviews and at news conferences
this month.
    
FOREIGN BONDS 
----------------------------------------------------------------------------------------
 Nippon Life    wants to increase foreign bonds if currency rates attractive
 Dai-ichi       to keep holding without currency hedging steady 
 Meiji Yasuda   plans to increase holdings, possibly by 700 billion  
 Sumitomo       to gradually reduce currency hedges on foreign bonds
 Mitsui         no major plan to increase foreign bond holdings 
 Taiyo          to increase holdings, mostly with currency hedging
 Daido          have increased holdings by Y35 bln in H1 
 Fukoku         to maintain holdings after having bought Y100 bln more than planned  
 Asahi          to reduce holdings, having raised them by Y160 bln in H1
    
JAPAN BONDS 
-----------------------------------------------------------------------------------------
 Nippon Life    to increase holdings but may limit buying if yields too low
 Dai-ichi       to increase holdings but may look to foreign bonds if yields too low 
 Meiji Yasuda   to increase holdings, possibly by 200 bln yen
 Sumitomo       to increase holding, but if yields too low, may shift to foreign bonds
 Mitsui         to increase holdings by around 50 billion yen
 Taiyo          to keep holdings steady or slightly reduce them
 Daido          to mildly slow pace of buying, has reduced them by Y40 bln in H1
 Fukoku         to increase holdings by Y50 bln; though stance depends on yields, liquidity
 Asahi          to increase holdings further
 
JAPAN STOCKS 
----------------------------------------------------------------------------------------
 Nippon Life    may trim holdings  
 Dai-ichi       to trim holdings after a small increase in Apr-Sept
 Meiji Yasuda   may cut holdings
 Sumitomo       to keep holdings steady
 Mitsui         has finished long-term objective of reducing Japanese stocks 
 Taiyo          to sell if Nikkei above 14,000, but buy below 13,000 
 Daido          n/a
 Fukoku         to keep holdings steady
 Asahi          to reduce holdings
    
FOREIGN SHARES, ALTERNATIVE INVESTMENTS
----------------------------------------------------------------------------------------
 Nippon Life    may reduce holdings 
 Dai-ichi       to increase holdings in foreign shares 
 Meiji Yasuda   to increase investment 
 Sumitomo       to take a cautious stance on foreign stocks 
 Mitsui         n/a
 Taiyo          n/a 
 Daido          n/a
 Fukoku         to reduce properties by Y10 bln
 Asahi          to maintain holdings steady

EXPECTED MARKET RANGES 
-----------------------------------------------------------------------------------------
                 Dollar/yen    Euro/yen      NIKKEI         JGB 10-yr      US 10-yr
 Nippon Life     Y93 - 103    Y117 - 137   13,500 - 17,000  0.55 - 1.15%    n/a
 Dai-ichi        Y97 - 103    Y126 - 140   14,000 - 17,000  0.5 - 0.9%   2.5 - 3.0% 
 Meiji Yasuda    Y94 - 105    Y125 - 142   12,500 - 15,500  0.6 - 0.9%   2.4 - 3.2%
 Sumitomo        Y90 - 110    Y115 - 145   12,500 - 16,700  0.5 - 1.0%   2.4 - 3.2% 
 Mitsui          Y98 - 108    Y124 - 139   15,000 - 16,500  0.65- 1.05%  2.4 - 3.6%     
 Taiyo           Y90 - 100    Y120 - 140   12,000 - 16,000  0.5 - 0.8%   2.0 - 3.0%        
 Daido           Y95 - 110    Y125 - 150   13,000 - 16,000  0.5 - 0.9%   2.3 - 3.5%
 Fukoku          Y95 - 105    Y120 - 145   13,500 - 16,000  0.6 - 0.9%      n/a
 Asahi           Y90 - 110    Y120 - 140   12,000 - 16,000  0.5 - 0.9%   2.5 - 3.2%

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below