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Japan Post Holdings Co.’s life insurance unit said Thursday that it had 98.8 trillion yen (US$1.15 trillion) in assets as of June 30, marking the first time in about 14 years that postal insurance assets have fallen short of the 100 trillion yen mark.
The number of postal life insurance policies has decreased by more than 10 million from the roughly 55 million that were in force before the postal privatization process began in 2007.
Overall assets have continued to fall from the peak of 126 trillion yen in March, 2002, in part because of a slump in the endowment insurance market. In addition, rules restricting Japan Post Insurance Co.’s entry into new lines of business have prevented the unit from branching out into the growth field of medical insurance, including cancer insurance policies.
Despite the drop in total assets, Japan Post Insurance reported Thursday a core operating profit of 131.4 billion yen for the April-June quarter, up 20 per cent from a year earlier. The gap between investment returns and guaranteed yields to policyholders shrank, and benefit payments were lower than expected. Premium revenue saw slight year-on-year growth to 1.91 trillion yen.
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