Fitch Ratings lowers its outlook on Japanese insurers to stable from positive
Fitch has revised its outlook on Japanese life and nonlife insurers to stable from positive
- says Japanese Insurers Investment Risks Likely to Rise in 2020
- biggest risks for Japanese insurers will continue to stem from financial markets in 2020
- Fitch expects insurers to boost their investments in foreign credit-spread products in search of yield amid the 'super-low' interest rates in Japan.
- expects most Japanese traditional life insurers to raise exposure to unhedged foreign fixed-income securities as long as they expect volatility in the US dollar/Japanese yen rate to be limited, and as currency-hedging costs are likely to stay high.
Info on Fitch's latest "Fitch Ratings 2020 Outlook: Japanese Life and Non-Life Insurance" via Reuters, bolding mine