台湾寿险之后，日本寿险”巨亏“，长债风暴直击亚洲寿险

Core Viewpoint - Japan's insurance companies are facing significant losses due to rising interest rates and bond market volatility, leading to concerns about potential forced selling of government bonds [1][2][3][4][5]. Group 1: Financial Impact on Japanese Insurance Companies - The four major Japanese life insurance companies reported a total book loss of 8.5 trillion yen (approximately 600 billion USD) for the last fiscal year, a threefold increase year-on-year [1][3]. - Meiji Yasuda Life Insurance Company disclosed a staggering increase in its domestic bond losses, which surged over eightfold to approximately 1.386 trillion yen [3]. - Sumitomo Life Insurance's bond losses also more than doubled, reaching 1.518 trillion yen [3]. Group 2: Broader Asian Insurance Sector Challenges - The entire Asian insurance sector is experiencing billions of dollars in book losses, primarily due to their investment in long-term bonds [2][4]. - Taiwanese insurance companies are also facing significant declines, with net worth dropping to 2.4172 trillion TWD, marking the largest monthly decrease in two and a half years [3]. Group 3: Risks of Forced Selling - Rising interest rates are pushing insurance companies towards a "death spiral" of forced selling, as policyholders may cancel policies for higher-yielding investments, necessitating cash for payouts [5][6]. - If interest rates continue to rise, it could lead to further bond devaluation and increased book losses, creating a self-reinforcing downward cycle [6]. Group 4: Central Bank Dilemma - The Bank of Japan faces a challenging dilemma: raising interest rates could force insurance companies into liquidation, while not raising rates could lead to a collapse of the yen and soaring inflation [7]. - There is speculation that further increases in long-term bond yields may be limited, but any decline in bond prices could still compel insurance companies to sell portions of their holdings [7].