The U.S. Federal Reserve's pivot from steady monetary tightening has forced a Japanese insurer to look at a pivot of its own.
Facing rock-bottom yields in its home market, Fukoku Mutual Life Insurance Co. had ramped up its overseas investments to about 30 percent of its total.
The majority of that wasn't hedged for currency risk — the thinking was that rising U.S. rates would put downward pressure on the yen. But with the Fed's dovish shift, that tactic's not looking so hot, and Fukoku's now set to boost its hedging.
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