Japan life insurers to raise JGB holdings with eye on BOJ policy

Nine insurers plan increase of $15bn in anticipation of higher rates

Nippon Life Insurance is starting the fiscal year off slow with its JGB purchases, planning to pick up the pace when yields look more appealing. © Reuters

SATOSHI TEZUKA, Nikkei staff writer

April 29, 2023 00:02 JST

TOKYO -- Japanese life insurance companies are increasing their holdings of Japanese government bonds this fiscal year as they expect a shift in the Bank of Japan's ultraloose policy that will likely lift interest rates.

Nine of 10 major life insurers told Nikkei that they plan to raise their holdings of superlong-term 20- to 40-year JGBs in fiscal 2023, with the increase expected to top 2 trillion yen ($14.7 billion).