Dai-ichi Life Holdings Inc., Japan’s largest listed life insurer, anticipates that the surge in bond yields that has resulted in significant unrealized losses for the country’s insurers will subside as it is not supported by economic fundamentals. Chief Executive Officer Tetsuya Kikuta stated in an interview that new buyers entering the Japanese government bond market are currently amplifying volatility. The 30-year JGB yields recently reached a record high, eroding the value of bonds held by insurers in their portfolios. As of the end of March, Dai-ichi Life’s unrealized losses on domestic bonds stood at approximately ¥2 trillion ($14 billion).
