Japanese Insurers Abandon Hedging In Search For Returns

The combination of low domestic bond yields and currency volatility has forced Japan insurers to adopt a new investment strategy for the year ahead.

The nine largest Japanese life insurance companies have recently published their investment plans for the first half of their fiscal year, which began on April 1. Trawling through the figures, analysts at Bank of America have picked out one major change in their investment plans that seems to be a simple strategy to overcome FX market volatility.

Japan Insurers Abandon Hedging To Improve Returns

According to Bank of America’s findings, the investment plans remain largely unchanged from last...