Japan insurers to halve bond purchases, awaiting next BOJ hike

Industry leaders turn to alternative assets to lift returns in meantime

Some players are investing in foreign bonds, anticipating that the yen will eventually strengthen against the dollar. © Reuters

OKI HIDAKA and RIHO TAKAHASHI, Nikkei staff writers

April 25, 2024 08:39 JST

TOKYO -- Japan's top life insurers plan to halve net purchases of Japanese government bonds in fiscal 2024, a Nikkei survey has found, as they keep an eye out for the Bank of Japan's next rate hike amid sluggish long-term yields.

Nikkei asked 10 major players about their investment strategies for the year: Nippon Life Insurance, Dai-ichi Life Insurance, Meiji Yasuda Life Insurance, Sumitomo Life Insurance, Fukoku Mutual Life Insurance, Taiyo Life Insurance, Daido Life Insurance, Asahi Mutual Life Insurance, Taiju Life Insurance and Japan Post Insurance.