HONG KONG, March 4 (Bernama-BUSINESS WIRE) — AM Best has assigned a stable outlook to Japan’s life insurance industry, owing to insurers’ solid mortality/morbidity profits, a steady investment yield backed by well-diversified bond portfolios and its solid risk-adjusted capital position.
The new Best’s Market Segment Report, titled, “Market Segment Outlook – Japan Life Insurance,” states that Japan’s life insurance segment grew by 2.9% in 2019 in terms of total annualized premiums from policies in force. Core profit continued to increase, to JPY 3.78 trillion (approximately USD 35 billion) in fiscal-year 2018/19 from JPY 3.58 trillion in fiscal-year 2017/18. The Japan life market, which is dominated by six major insurance companies, recorded an improvement in total core profit to JPY 2.81 trillion from JPY 2.66 trillion during fiscal-year 2018/19. Overall, life insurers in Japan are likely to continue delivering robust operating results over fiscal-years 2019/20 and 2020/21, driven by solid mortality/morbidity profits despite potential volatility in investment spreads.
