Economics
Negative Yields to Punish Insurer’s Profits: Ex-BOJ Official
- Life insurers will become poorer if they don’t change: Suda
- JGBs make up 40% of $3.5 trillion assets managed by insurers
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Miyako Suda, who opposed the Bank of Japan’s ultra-loose monetary policy as a board member, has a warning for the nation’s life insurers as bond yields sink ever lower.
This prolonged period of ultra-low rates will pressure profits as sovereign debt matures and has to be replaced with lower-yielding bonds, said Suda, who is now an external board member at Meiji Yasuda Life Insurance Co.