HONG KONG, May 13 (Bernama-BUSINESS WIRE) — AM Best has revised its market segment outlook on Japan’s life insurance industry to negative from stable, citing the growing pressures the COVID-19 pandemic are placing on current and forecast economic conditions in the country.
In a Best’s Market Segment Report, AM Best states that the reasons for the revised outlook factor the global and Japan economies, with each facing probable recessions; the perennial hunt for yield that is increasingly difficult with the combination of interest rate cuts abroad and higher hedging costs; and the greater likelihood of sharp reductions in corporate earnings, which likely will lead to declines in dividend income.