Oct 27 (Reuters) - Japan’s Dai-ichi Life Insurance plans to increase investments in domestic bonds and reduce the holdings of domestic stocks in the half year through March, the country’s second-largest private insurer said on Tuesday.
Following is a summary of Dai-ichi Life’s portfolio investment plans in the half year through March. Dai-ichi Life, the core company of Dai-ichi Life Holdings, had total assets of 37.5 trillion yen ($358 billion) as of end-June.
Dai-ichi plans to increase the holdings of yen bonds in October-March after having bumped them up in the first fiscal half ended in September as it seeks to reduce a mismatch between its assets and its long-term liabilities as a part of its strategic plan to reduce market risks. It also plans to invest in project finances as well.
“We plan to increase the holdings of Japanese government bonds (JGBs) to a degree in the current half year, regardless of market environment. But if their yields rise further, we could consider accelerating buying,” said the firm’s senior investment planning official.
The insurer said it reduced the holdings of foreign bonds without currency hedge in April-September as the company wanted to reduce market risk exposure. Its stance on such bonds in the current half of the fiscal year depends on currency levels, the company said.
Dai-ichi has increased the holdings of currency-hedged foreign bonds in the first half to September but the firm said what it will do in October-March depends on yield levels.
The insurer plans to cut back its domestic stock holdings in the October-March period as a part of its long-term plan to reduce market risks.
Dai-ichi plans to increase its alternative assets, including hedge funds, buyout funds and infrastructure funds, and real estate investments in the current fiscal half.
The company plans to scale up its ESG (environmental, social and governance) integration efforts in October-March. The insurer started to employ MSCI’s ESG index as its benchmark for foreign stock portfolio. ($1 = 104.7000 yen)
Reporting Tomo Uetake in Sydney, additional reporting by Kentaro Sugiyama in Tokyo; Editing by Hideyuki Sano & Rashmi Aich
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