Japan’s largest life insurers are ramping up lending, particularly for overseas projects like data centers and infrastructure, as rising interest rates improve loan profitability. Nippon Life, Daiichi Life, Meiji Yasuda, and Sumitomo Life all announced plans to expand project financing in the second half of the fiscal year ending March 2027. Meiji Yasuda will increase lending for the first time in six years, focusing on global infrastructure and Japanese corporate funding needs.
Daiichi Life targets overseas infrastructure and domestic leveraged-buyout loans, while Sumitomo Life plans selective overseas project finance. Nippon Life is responding to US demand for data center financing. The shift reflects a broader portfolio rebalancing after years of reduced domestic lending due to ultra-low rates.
With ¥15.7 trillion ($99.7 billion) in outstanding loans as of June, insurers are leveraging floating-rate assets to earn spreads. However, they remain cautious on lower-quality credit due to risk constraints.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing