Dai-ichi Life Insurance lost about ¥140 billion ($890 million) selling off bonds with longer maturities to prepare for higher interest rates.
The insurer sold about ¥500 billion of Japanese government notes, mainly 20- to 40-year bonds, in the fiscal first half that ended in September. The sales were concentrated in the first half of the fiscal year and would be “more restrained” in the second half, the company’s president, Toshiaki Sumino, said in an interview.
“We will continue to carry out replacement operations while paying attention to the impact on profits and losses” in the next fiscal year and beyond, Sumino said. “I don’t think the loss will have any impact on our financial soundness,” he added. Dai-ichi owns ¥18.9 trillion in yen-denominated bonds.
