A financial advisory practice of Ameriprise Financial Services, Inc.

A financial advisory practice of Ameriprise Financial Services, Inc.
TABLE-Japanese insurers' investment plans in 2014/15
(Reuters) - Japanese life insurers, which have combined assets of more than 180 trillion
yen ($1.84 trillion) under management, are planning to shift some of their funds from
domestic bonds to foreign bonds, as the Bank of Japan's massive easing has suppressed
domestic bond yields.
Below is a summary of the investment plans of Japan's biggest life insurance companies
for financial year to March 2015, as obtained by Reuters in interviews and at news
conferences this month.
FOREIGN BONDS
Nippon Life to keep hedged bonds steady or trim them, to buy unhedged bonds if yen
rises Dai-ichi to allocate more funds than past, both those with and without FX hedging
Meiji Yasuda to increase holdings Sumitomo to increase holdings by less than Y500 bln,
reduce hedging Mitsui plans to increase holdings by Y50 bln, including FXhedged/unhedged
bonds Taiyo to maintain current holdings, might reduce hedge ratio
Daido to increase holdings after buying Y100 billion last FY Fukoku to increase Y30 bln
after having bought Y20 bln more than planned Asahi to increase holdings, may reduce
hedging on dollar bonds slightly
JAPAN BONDS
Nippon Life to increase holdings but closely eyeing yield levels Dai-ichi will not buy at
current yield levels, may reduce holdings Meiji Yasuda to increase holdings but be
prepared for potential yield spike Sumitomo to increase holding, but reduce buying in
super-long JGBs Mitsui to increase holdings by around Y100 billion Taiyo to maintain
holdings after selling Y80 billion last FY Daido to maintain holdings after selling Y110
billion last FY Fukoku to mildly increase to Y10 bln Asahi to maintain holdings flat after
increasing Y90 bln last
FY JAPAN STOCKS
Nippon Life to keep holdings steady Dai-ichi to look for chances to buy on dips Meiji
Yasuda to cut holdings Sumitomo to keep holdings steady Mitsui has almost finished
long-term objective of reducing Japanese stocks Taiyo no plans to increase after selling
Y10 billion last FY Daido to maintain holdings after buying Y5 billion last FY Fukoku
increase Y10 bln, increase is 1st time in 6 years Asahi to maintain holdings steady
FOREIGN SHARES
Nippon Life to keep foreing share holdings steady, see opportunity in loans Dai-ichi to
increase holdings in foreign shares, invest in growth areas Meiji Yasuda to increase
investment in shares, keep alternatives steady Sumitomo to invest up to around Y50 bln

in growth areas in infrastructure, Asia Mitsui n/a Taiyo n/a Daido to maintain holdings
Fukoku n/a Asahi to slightly increase alternative investments
EXPECTED MARKET RANGES
Dollar/yen Euro/yen NIKKEI JGB 10-yr US 10-yr Nippon Life Y105 - 115 Y133 - 147
15,500 - 19,000 0.6 - 1.2% n/a Dai-ichi Y98 - 113 Y130 - 155 13,500 - 18,500 0.55- 1.20%
2.5 - 3.75% Meiji Yasuda Y98 - 110 Y130 - 150 13,000 - 18,500 0.5 - 1.1% 2.4 - 3.4%
Sumitomo Y95 - 120 Y130 - 150 13,300 - 18,600 0.4 - 1.0% 2.4 - 3.7% Mitsui Y102 - 112
Y141 - 153 15,500 - 18,500 0.4 - 1.0% 2.5 - 3.9% Taiyo Y95 - 110 Y130 - 150 13,000 -
17,000 0.5 - 1.2% 2.5 - 3.5% Daido Y95 - 120 Y125 - 160 13,000 - 18,000 0.5 - 1.0% 2.3 -
3.8% Fukoku Y95 - 110 Y135 - 155 13,000 - 17,500 0.55 - 1.0% 2.3 - 3.5% Asahi Y97 - 115
Y132 - 154 12,500 - 17,500 0.5 - 0.9% 2.4 - 3.7% (Reporting by Tokyo Markets Team;
Editing by Anand Basu)