Latest news with #NipponLifeInsuranceCo.
Yomiuri Shimbun
02-06-2025
- Business
- Yomiuri Shimbun
Keidanren Under New Tsutsui Leadership: Strong Ability to Communicate Needed to Overcome Difficult Situation
The tariff policies of U.S. President Donald Trump are shaking the world, causing major changes to the global economic order. As a leader in the business community, Keidanren (Japan Business Federation) must convey its messages strongly to overcome this difficult situation. Yoshinobu Tsutsui, former chairman of Nippon Life Insurance Co., has taken office as the 16th chairman of Keidanren. This is the first time for a figure from a financial institution to assume the post, whose past holders have mainly been people from the manufacturing industry. Nippon Life Insurance is a leading institutional investor with in-depth knowledge of the management of a wide range of companies. To break out of the long period of stagnation known as the 'lost 30 years,' Keidanren under Tsutsui must take the lead in discussions on the state of government economic policies and corporate management. The first test will be how to maintain the trend of wage increases. In an effort to achieve a growth-oriented economy in which both wages and investment increase, historically high wage increases have continued at major companies for three consecutive years, including this year's shunto spring wage negotiations. However, amid growing uncertainty over the future due to the U.S. high tariff policy, the momentum for wage hikes at small and midsize companies is weakening, and dark clouds are looming over major companies' shunto negotiations next year. 'Extremely powerful momentum for wage increases has been established. The most important task now is to further cement this trend,' Tsutsui said. He must take the lead in the wage hike movement and make it spread throughout Keidanren's member companies. The internal reserves of Japanese companies have risen to about ¥600 trillion, which should provide sufficient capacity for investment and wage increases. It is the responsibility of member companies to continue investing aggressively and raising wages even in the face of headwinds. Stabilizing the social security system and dispelling future concerns are important tasks even for corporate management. Tsutsui has stated that 'it is not appropriate to reduce consumption tax,' as it is a fundamental source of revenue supporting the social security system. This is a valid point. Close attention must be paid to changes in the global economic order. The United States will likely maintain its protectionist stance for some time. The free trade system centered on the United States is wavering, and the foundation of Japan's economic growth is being shaken. Tsutsui has announced a plan to establish a Global South committee within Keidanren and strengthen ties with emerging and developing countries. It is important to deepen relations with India and the Association of Southeast Asian Nations. It is necessary to devise a strategy to reduce dependence on the United States, expand sales channels to other countries and regions and continue economic growth. Toyota Motor Corp. President Koji Sato is among the four people to newly assume a vice chair post. It has been a long time since a Toyota president has held that job. It is hoped that he will bring new energy to Keidanren by leveraging his experience as the head of Japan's largest manufacturing company. (From The Yomiuri Shimbun, June 2, 2025)
28-05-2025
- Business
All 4 Major Japanese Life Insurers Post Record Profits in FY 2024
News from Japan Economy May 28, 2025 15:03 (JST) Tokyo, May 28 (Jiji Press)--All four major Japanese life insurance firms posted record core business profits in fiscal 2024, thanks to higher investment gains. A weaker yen boosted the insurance companies' interest income on their foreign bond holdings in yen terms, and their stock dividend income increased on the back of strong performance of domestic companies, according to the insurers' earnings reports for the fiscal year to March 2025 released by Monday. Nippon Life Insurance Co. saw its core business profit surpass 1 trillion yen for the first time, up 32.3 pct from the previous year. Core business profit rose 21.6 pct at Dai-ichi Life Holdings Inc. and climbed 11.6 pct at Meiji Yasuda Life Insurance Co. Sumitomo Life Insurance Co.'s core business profit grew 24.3 pct, backed by the conversion of a Singaporean unit into a consolidated subsidiary. [Copyright The Jiji Press, Ltd.] Jiji Press
Bloomberg
15-05-2025
- Business
- Bloomberg
Nippon Life to Stop Sending Staff to Sales Departments at Banks
Nippon Life Insurance Co. will discontinue the practice of temporarily sending employees to work in sales departments of other firms such as banks, judging that the arrangements may distort fair competition. So-called secondment agreements with major banks and regional lenders have allowed Japanese insurers to dispatch staff to financial firms, where they can sell the companies' insurance products. But critics have said that the practice has led to misconduct, in addition to reducing competition.
Bloomberg
13-05-2025
- Business
- Bloomberg
Japan's Biggest Insurer Weighs Riskier Overseas CLO Investments
Japan's biggest life insurer is considering taking on a little more risk with its investments in collateralized loan obligations, as it looks for ways to eke out better returns abroad. Nippon Life Insurance Co. last year joined other Japanese institutions that are buying CLOs — financial products made up of leveraged corporate loans — to diversify investments. They have typically focused on the highest-rated notes, which are seen as the least risky but offer lower returns.
Mint
24-04-2025
- Business
- Mint
Japan's Biggest Life Insurer to Reduce Its Yen-Bond Holdings
Japan's largest life insurer plans to reduce its holdings of the nation's sovereign bonds, even as higher yields have attracted more domestic buyers and overseas investors to the haven asset. Nippon Life Insurance Co. said that after making purchases at a brisk pace earlier this month, buying will now steady and that on a book value basis, its holdings of the debt will drop this fiscal year for the first time since the 12 months ended March 2017. While yields for 30-year Japanese government bonds favored by Nippon Life are attractive, 'the market is highly unstable with low liquidity that's resulting in heightened volatility,' said Akira Tsuzuki, executive officer of the company's finance and investment planning department. The pace of purchases may change, depending on market conditions, he said at briefing on Thursday. With combined invested assets of about ¥390 trillion , the industry's investment decisions are closely watched by global investors as they can move markets. At the moment, there is a divergence in approaches among them to investments this year. Nippon Life is similar to Meiji Yasuda Life Insurance Co., which will reduce yen-denominated bond holdings while boosting purchases of foreign bonds and stocks. In contrast, some others such as Fukoku Mutual Life Insurance Co. and Daido Life Insurance are increasing holdings of domestic bonds. The insurers are contending with the fallout from US President Donald Trump's tariffs policies, which have whipsawed global markets, sparking so-called sell-America trades as some investors questioned the traditional haven status of the dollar and Treasury bonds. Japan's super-long government bonds saw a record foreign inflows last month as heightened risk aversion highlighted the securities' allure as a safe asset. Read: Japanese Assets Draw Record Inflows in Sign Funds Are Leaving US Nippon Life expects the Bank of Japan to raise interest rates this fiscal year to 0.75%, from 0.5% now. It also projects Japan's 10-year yield to rise to 1.4% at the end of the fiscal year, from its current level of about 1.31%. The global trade war has muddied the picture for the BOJ, with overnight index swaps showing a 59% chance of a rate hike by the December policy meeting, compared to certainty earlier this month. 'While life insurance companies are delaying investments due to the high volatility, they are sensing potential in current yield levels,' said Ataru Okumura, a senior interest-rate strategist at SMBC Nikko Securities. 'Once the market stabilizes, they may enter the market to buy.' This article was generated from an automated news agency feed without modifications to text. First Published: 24 Apr 2025, 03:35 PM IST
