Japan insurers calibrate overseas investments as hedging barrier climbs
A long period with a struggling yen against the US dollar creates a challenge that the insurance companies seek to tackle, as risk concerns make overseas diversification necessary.
Hedging costs are creating a barrier for Japanese insurance to overseas investment, according to 10 insurers who detailed their investment plans for the fiscal year ending March 2023 at media briefings recently.
Fukoku Mutual Life Insurance said it plans to offload all its currency-hedged foreign debt as it sees hedging costs remaining high due to a Federal Reserve it believes is unlikely to cut rates this year.
“Declines in hedging costs and improvement of profitability cannot …
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