TOKYO -- Nippon Life Insurance will again start underwriting corporate annuity policies in April, investing in riskier instruments to generate guaranteed returns, a sign that the industry is adapting to the Bank of Japan's negative interest rate policy.
The Japanese life insurer will offer defined-contribution pension products, invested via a general account that promises a minimum return. The guaranteed yield, to be set at a minimum 0.25%, will be re-evaluated every three months to reflect market trends. The company expects to be entrusted with several dozen billion yen in its first fiscal year. Other life insurers will likely follow suit.