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Economy

Life insurers seek a new, and high-return, safe haven

Japan Post Insurance has 73.5% of its total assets in public and corporate bonds.

TOKYO -- The Bank of Japan's negative interest policy has life insurers in a bind.

     Most of the industry puts the money it gets from premiums into the safety of long-term domestic government and corporate bonds. Now, however, yields on new 10-year government bonds, as well as short-term interest rates, are negative. If rates remain on this financial tundra for long, life insurers will experience increasing difficulty excavating returns.

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