Asset Management Risks from the Low-Interest-Rate Environment and Market Fluctuations
First written in FY2016. 7 of 14 entries say "Materialised", first in FY2020-Q2. Latest entry: 2026-08-12.
Lifenet Insurance Company moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 4 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- 2026-08-12MaterialisedEarnings presentation
「Declined from the previous year-end because the impact of higher interest rates could not be absorbed」
Market movements including higher interest rates were reflected in a decline in comprehensive equity, from ¥176,149 million at the end of March 2026 to ¥174,854 million at the end of June 2026. - FY2026WorsenedAnnual report
「As geopolitical tensions continue and intensify globally, the prolonged situation in Russia and Ukraine, together with the destabilization of the Middle East accompanying the deepening military confrontation involving the United States, Israel and Iran, among other factors, has further increased uncertainty over international political and economic trends. This situation has had a significant impact on fluctuations in Japan’s financial markets, including interest rates, foreign exchange and share prices. In these circumstances, the company recognizes that the likelihood of interest-rate fluctuations has increased.」
The company has further detailed the expansion of geopolitical tensions and their impact on financial markets in relation to market fluctuation risks involving interest rates, foreign exchange and share prices. - FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, the company made a new investment of ¥3,000 million in Advance Create Co.,Ltd. in connection with a capital and business alliance. As a result, its equity securities balance increased, as did the risk associated with share-price fluctuations.」
The company explicitly stated that its equity securities balance and share-price fluctuation risk increased as a result of the new ¥3,000 million investment in Advance Create Co.,Ltd. - FY2025MaterialisedAnnual report
「Financial income (loss) amounted to a loss of ¥33 million, mainly due to the recognition of foreign-exchange losses.」
Losses arising from foreign-exchange fluctuations were reflected in financial income (loss) for the fiscal year. Other investment income (loss) also amounted to a loss of ¥915 million, indicating that asset management risks arising from market and foreign-exchange fluctuations continued to materialize in the results. - FY2025-H1MaterialisedAnnual report
「Although interest income from foreign securities, whose holdings had increased, rose, financial income (loss) amounted to a loss of ¥57 million due to the recognition of foreign-exchange valuation losses caused by the stronger yen.」
Foreign-exchange valuation losses caused by the stronger yen were actually recognized, resulting in a ¥57 million financial loss. Asset management risks arising from market and foreign-exchange fluctuations were reflected in profit and loss for the interim consolidated accounting period. - FY2024WorsenedAnnual report
「As the global economy and international political situation undergo major changes, inflation has been progressing globally, and countries in Europe and the United States have raised their policy interest rates. In these circumstances, the company recognizes that the likelihood of interest-rate fluctuations has increased.」
The company indicated that the possibility of interest-rate risk arising has increased against the backdrop of inflation and policy-rate increases in various countries. - FY2023-Q3MaterialisedAnnual report
「Asset management expenses amounted to ¥93 million, mainly due to the recognition of losses on sales of securities.」
The company recognized ¥93 million in asset management expenses, including losses on sales of securities, in connection with asset management risks arising from market volatility and other factors. - FY2022WorsenedAnnual report
「The company recognizes that, as the global economy and international political situation undergo major changes amid the effects of the COVID-19 pandemic and the situation in Ukraine, among other factors, the likelihood of interest-rate fluctuations has increased.」
In addition to the conventional risks of low interest rates and rising interest rates, the company stated that the possibility of interest-rate fluctuations has increased against the backdrop of the COVID-19 pandemic and the situation in Ukraine. - FY2020-Q2MaterialisedAnnual report
「Foreign securities are not included in “(4) Securities” because they have no market prices and are considered extremely difficult to measure at fair value. During the interim accounting period, the company recognized an impairment loss of ¥46 million on foreign securities.」
The company disclosed that it recognized an impairment loss of ¥46 million on foreign securities in connection with asset management risks arising from market volatility and other factors. - FY2018RestatedAnnual report
「Although interest rates on Japanese government bonds and other instruments have remained at low levels in recent years, there is no guarantee that current interest-rate levels will continue in the future. Interest rates on the government and corporate bonds held by the company may rise, causing their fair values to decline.」
The company continues to explain the low-interest-rate environment, declines in the fair value of government and corporate bonds caused by rising interest rates, and asset management risks including credit and foreign-exchange risks. - FY2017RestatedAnnual report
「Although interest rates on Japanese government bonds and other instruments have remained at low levels in recent years, there is no guarantee that current interest-rate levels will continue in the future. Interest rates on the government and corporate bonds held by the company may rise, causing their fair values to decline.」
In addition to the low-interest-rate environment, the company continues to explain asset management risks, including declines in the fair value of government and corporate bonds caused by rising interest rates, as well as credit and foreign-exchange risks. - FY2016First statedAnnual report
「In the life insurance industry, although the number of policies in force exceeded the previous year’s level, life insurers are facing a challenging environment, including being forced to suspend sales of certain insurance products and revise premium rates due to the impact of the low-interest-rate environment.」
The company states that the low-interest-rate environment has already led to the suspension of product sales and revisions to premium rates, and explains market risks including interest-rate, foreign-exchange and credit risk.