Japanese life insurers divided on equities exposure

Japanese life insurers are split on the attractiveness of equities in the current macroeconomic environment. Some of them are increasing their exposure, while others remain wary and favour private markets instead. While long-term fixed income, and especially Japanese government bonds (JGBs), is the main target for investments and takes up the majority of life insurers’ portfolios, relatively smaller pockets are seeking to diversify to riskier assets with the aim of boosting return…