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.
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