Breaking News
0

Japan's Mitsui Sumitomo Insurance to mainly invest in foreign credit products this FY

Stock MarketsApr 24, 2018 01:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Japan's Mitsui Sumitomo Insurance to mainly invest in foreign credit products this FY

By Ayai Tomisawa

TOKYO (Reuters) - Japan's Mitsui Sumitomo Insurance Co [MITSID.UL] plans to mainly invest in foreign credit products for this fiscal year, a senior company executive said on Tuesday.

The main arm of MS&AD Insurance Group Holdings (T:8725) will invest about 30 billion yen ($275.81 million) in U.S. credit products in particular for the financial year ending March 2019, Tomonori Mano, manager of the investment planning department at Mitsui Sumitomo, told Reuters in an interview.

"Since this is the beginning of our mid-term business year, we want to establish a solid investment plan, and start managing foreign credit products and monitoring their performances," Mano said.

The insurer, which had 6.7 trillion yen in total assets as of March 2018, does not plan to increase investment in foreign government bonds and foreign stocks this fiscal year, after investing about 25 billion yen and 20 billion yen, respectively, in the previous year.

"Foreign stock prices have risen sharply. We are not expecting them to keep rising, so we will be taking profits gradually," Mano said.

The insurer plans to invest 100 billion yen in domestic corporate bonds this fiscal year, the same amount it invested last fiscal year. The total asset in this category will stay the same as most of them will be redeemed.

Mitsui plans to invest in 10-20 billion yen in domestic bonds this year but the total balance has been decreasing. It added that it will cut its investment in super-long bonds due to falling demand in long-term insurance products.

Mitsui Sumitomo Insurance plans to continue cutting holdings of domestic stocks as it is now in the second year for MS&AD Insurance Group Holdings' five-year plan to reduce such exposure by a total of 500 billion yen.

Many Japanese insurers have been slowly unwinding their cross-holdings of shares, recognizing the risk they pose to their financial health.

The insurer expects the 10-year Japanese government bond yield <JP10YTN=JBTC> to trade between minus 0.05 and 0.1 percent for this fiscal year.

It also expects the dollar to trade between 105 and 112 yen.

($1 = 108.7700 yen)

Japan's Mitsui Sumitomo Insurance to mainly invest in foreign credit products this FY
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email