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    3. Unrealized Losses on Japanese Government Bonds for Life Insurers Increase by ¥30.86 Trillion

    Unrealized Losses on Japanese Government Bonds for Life Insurers Increase by ¥30.86 Trillion

    By: www.tokenpost.kr|2026/08/18 04:07:17
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    The unrealized losses on Japanese government bonds held by major Japanese life insurance companies rose to ¥30.86 trillion at the end of June, surpassing the evaluation gains from domestic stocks. This increase is attributed to the burden on insurers' long-term portfolios due to rising long-term government bond yields. According to data from 13 out of 14 life insurers that responded, the unrealized losses on government bonds increased by 60% compared to the same period last year. At the same time, the unrealized gains from domestic Japanese stocks were ¥30.03 trillion. Bond prices move inversely to interest rates, meaning that when rates rise, the market price of bonds purchased at historically low rates declines. The yield on 30-year Japanese government bonds rose to 3.9% at the end of June, while the yield on 10-year bonds reached 2.94%, marking a 30-year high. Japanese life insurers recorded impairment losses of ¥44 billion for the April to June quarter, while Meiji Yasuda Life Insurance reported losses of ¥25.3 billion. The fact that unrealized losses on government bonds have exceeded stock evaluation gains is analyzed as a result of the increased proportion of long-term bond holdings and rising interest rates.

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