Japan’s Fukoku Mutual Life counts on cash to mitigate volatility

Fukoku Mutual Life Insurance sees scope to move a bit more from foreign bonds into yen bonds as yields rose more than expected. | BLOOMBERG

Oct 16, 2026

Fukoku Mutual Life Insurance is maintaining an elevated cash position as a buffer against volatile global markets and concerns about rising government spending in the country.

Fukoku, which is the first life insurer in Japan to outline plans for the fiscal second half, also sees scope to move a bit more from foreign bonds into yen bonds as yields rose more than expected. Following last fiscal year’s large-scale move, the insurer expects any further shift would be moderate unless yields rise significantly beyond its projected range.

Investment decisions by Japan’s life insurers are closely tracked globally as their invested assets total about ¥386 trillion ($2.4 trillion), according to the end-July data from the Life Insurance Association of Japan. Investors will also be closely watching other insurers’ strategies as they are unveiled in the coming weeks.

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