Moody's changes Japan life insurance industry outlook to negative from stable
|The US-based ratings agency, Moody’s Investor Service, published its latest report on the Japanese life insurance industry, downgrading the outlook to negative from stable.
Key Quotes:
“Moody's Japan K.K. has changed the outlook for the life insurance industry in Japan to negative from stable.”
“The change in outlook reflects Moody's expectation that the industry's credit profile over the next 12-18 months will be pressured by a persistent ultralow interest rate environment, following the introduction of a negative interest rate policy (NIRP) by the Bank of Japan in February 2016.”
“Moody's says that key credit pressure will come from potential reactions in anticipation of future profit declines.”
“Instead, Moody's negative outlook is driven by the potential reactions from the industry, in anticipation of a prolonged period of ultralow domestic interest rates.”
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