Nippon Life Insurance Co., Japan’s largest life insurer, reported that unrealized losses on its domestic bond holdings more than tripled in the fiscal year ending March. The company’s paper losses on Japanese bonds surged to approximately ¥3.6 trillion ($25 billion) compared to the previous year. This significant increase was attributed to rising interest rates, which negatively impacted the value of Nippon Life’s bond portfolio.
The insurer had recently outlined plans to reduce its holdings of sovereign debt. The substantial losses highlight the challenges faced by major financial institutions in managing their bond portfolios amidst fluctuating interest rates.
