Japan’s Dai-ichi Life Insurance Co is evaluating plans to significantly increase its overseas investment target in its upcoming medium-term business strategy, with a potential allocation of 600 billion yen (about US$4.17 billion).
This would represent a twofold increase from the company’s current 300 billion yen commitment set under its strategy ending in fiscal 2026.
The insurer has been building its international portfolio in recent years. Notably, it acquired a 15% equity interest in UK-based insurer and asset manager M&G and made an investment of around 100 billion yen in Australia’s Challenger.
More recently, Dai-ichi boosted its stake in Capula Investment Management, a London-headquartered hedge fund, committing approximately 160 billion yen to the transaction.
In a recent discussion with Reuters, CEO Tetsuya Kikuta indicated that the timeline of the next strategic plan may extend to four years, compared to the typical three-year cycle.
He explained that the company aims to accelerate its global investment activity as a response to limited expansion prospects in the domestic market.
Dai-ichi’s increased investment appetite is part of a broader pattern among Japan’s major financial institutions, which are seeking growth through international diversification.
In 2025, UK-based Legal & General formed a strategic arrangement with Meiji Yasuda Life.
Meanwhile, Nippon Life, Japan’s largest life insurer, began joint venture negotiations with Deutsche Bank’s asset management arm DWS to enter the Indian market.
Fitch Ratings recently reaffirmed a “neutral” outlook for the Asia-Pacific insurance sector for 2025.
The agency highlighted strong capital adequacy and steady earnings performance as primary reasons for maintaining its sector view, even amid ongoing macroeconomic uncertainty.
Life insurers in the region are generally taking more conservative investment positions, while general insurers are focusing on cost containment and operational streamlining.
Despite near-term challenges from volatile financial markets, most APAC insurers are viewed as sufficiently capitalised to manage investment income pressures.
Fitch also reported that accounting practices in Japan, which use book value metrics for assets and liabilities, have helped insulate insurers from the impact of rising interest rates.
Notably, Fitch lowered its outlook for the life insurance segments in China and Taiwan, citing increasing financial and regulatory stress. These markets are expected to face continued strain from both domestic policy developments and broader economic conditions.
Meanwhile, property and casualty insurers across the region may experience premium growth opportunities, although rising reinsurance costs and climate-related exposure continue to create earnings pressure. To address this, firms are refining pricing models and product offerings aimed at margin improvement.
