Private market assets are making up larger shares of portfolios for diversification purposes, and lifers like Dai-ichi Life have ventured deeper into alternatives this year.
Many top Japanese life insurers, tempted by historically high yields, are nearing purchases of domestic government bonds, yet others are holding out for even more lucrative opportunities.
High hedging costs and a low yen have led Japanese life insurers to focus on domestic government bonds, although declining yields might also prompt them to seek out alternatives.
With a new regulatory regime in the making, the lifers’ relatively high allocation to domestic equity will incur a higher cost, and selling off can be either boom or bust.
The UK-headquartered fund manager has made the appointment as one of four ESG specialists who will operate a sustainability centre, based in Singapore.
The country insurers' offshore asset allocations will likely remain much lower than the regulatory limit of 15% this year, despite their need to locate higher levels of return.