Nippon Life Books ¥70 Billion Impairment Loss on Government Bonds

Nippon Life Insurance recorded a ¥70 billion ($440 million) impairment loss on its Japanese government bond holdings for the year ended March 31. The loss stems from bonds whose market value fell more than 50 percent below acquisition cost, meeting the company's impairment criteria.

A company spokesperson stated this is the first such charge since the Bank of Japan shifted to raising interest rates in March 2024.

Unrealized losses on domestic bonds held by Japan's four major life insurers reached ¥14 trillion at the end of March. That figure represents a more than 60 percent increase from a year earlier. Higher debt yields, driven by inflation, rate increases, and expectations of additional government spending, have weighed on Japanese government bond prices.