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Article: JAPAN LIFE INSURERS SEE FY00 NEGATIVE YIELDS OF $12.4 BLN.
- Article from:
- AsiaPulse News
- Article date:
- November 28, 2000
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TOKYO, Nov 28 Asia Pulse - Japan's 10 life insurance firms expect to suffer at least 1.38 trillion yen (US$12.4 billion) in combined negative yields on assets in fiscal 2000, according to first half earnings reports released by the insurers yesterday.
Negative yields occur when the actual return on investment slips below the assumed rate of return - the rate guaranteed to policyholders.
High negative yields have been the main cause of the recent collapse of six life insurers, including Chiyoda Mutual Life Insurance Co and Kyoei Life Insurance Co, which went under last month.
Many policies were sold during the optimism of the bubble era and carry ...