Key facts
- Nine of 10 major Japanese life insurers expect long-term rates at 3% or higher at the end of next March, per their plans.
- Many of the 10 insurers projected the Bank of Japan would raise its policy rate twice more by then.
- Daiichi Life plans to replace more than 1 trillion yen of JGBs in the business year, mainly 20- to 40-year bonds.
- Meiji Yasuda plans to buy about 2 trillion yen of JGBs through bond switching and new investment.
- Nippon Life replaced 1.1 trillion yen of bonds in April to September, above plan, and expects a similar second half.
- Daiichi Life said it began including gold this fiscal year and aims to raise it to about 1% of assets over three years.
Japan's major life insurers remain committed to diversified portfolios, suggesting higher Japanese government bond yields will prompt only a gradual shift of money back home, Nikkei reported on November 2. The 20-year JGB yield rose to around 4% in October 2026, a quadrupling over four years, which had fed speculation that Japanese investors might repatriate funds and disrupt the US Treasury market and dollar-yen trading.
By October 26, all 10 major insurers had published asset management plans for the second half of fiscal 2026, which runs from October to March 2027. Nine of the 10 said they expected long-term interest rates to reach 3% or higher at the end of next March, and many projected the Bank of Japan would raise its policy rate twice more by then, according to the plans.
Daiichi Life Insurance plans to replace more than 1 trillion yen of JGB holdings during the business year, mainly superlong bonds with maturities of 20 to 40 years. Meiji Yasuda Life Insurance plans to buy about 2 trillion yen of JGBs through a combination of bond switching and new investment.
Nippon Life Insurance replaced 1.1 trillion yen of bonds in April to September 2026, above its initial plan, and expects a similar amount in the second half. Daiichi Life said it began including gold in its portfolio this fiscal year and aims to raise it to about 1% of total assets over roughly three years. Fukoku Mutual Life Insurance said it would maintain the cash and deposit levels built up by the end of the previous fiscal year.