Asset Management Business
(Dai-ichi Life's Asset Management)

Where We Are and Our Strategy
in the Market

Dai-ichi Life conducts asset management with a focus on ALM based on the nature of its insurance policies (insurance liabilities), mainly investing in fixed-income assets in order to fulfill its obligation to pay out claims and benefits over a long period of time in a stable manner. We also strive to increase profitability by flexibly allocating capital to risk assets by taking market trends into account, but only after ensuring the soundness of these assets.
In addition, we are also focused on responsible investment as an institutional investor based on its social responsibilities. As part of these efforts, we carry out stewardship activities that aim to enhance the corporate value of investees and ESG investment* that balances social responsibilities and profitability.

* ESG investment: An approach to investment that considers environmental, social and corporate governance (ESG) criteria

Asset Portfolio (General Account)

graph : Asset Portfolio (General Account)

Reflecting on Our Previous Medium-term Management Plan, "D-Ambitious"

While interest rates remain low in Japan, markets have become more volatile with the beginning of a rise in U.S. interest rates, election of President Trump, and the U.K.'s decision to leave the E.U. In such an environment, we worked to bolster earnings power and diversify risk through such means as increasing our scope of investment in foreign-currency denominated bonds and expanding investment in project finance and other new and growing sectors. Through these initiatives, we marked the fifth consecutive year of positive spread.
In addition, with the aim of enhancing the effectiveness of our stewardship activities, we established a Responsible Investment Center and a Responsible Investment Committee in 2017. Moreover, starting in 2017, we reinforced our approach to upgrade our ESG investment, including the commencement of "impact investing" aimed at gaining profitability and creating social impact. These efforts have been highly praised, and in March 2018 we received the Japanese Ministry of the Environment's "Principles for Financial Action towards a Sustainable Society Environment" Minister's Award.

"CONNECT 2020" Strategies
and Initiatives

CONNECT with communities

Secure Stable Profitability

The domestic low-interest-rate environment is expected to continue for some time. In order to obtain stable profitability even in such an environment, we will accelerate the initiatives featured in our strategy in the market. We will also aim to enhance soundness by controlling risk through such means as using derivatives and other instruments to control duration, using AI to upgrade our systems for monitoring indications of market fluctuations, and building hedge positions against a hike in interest rates.
In addition, we will continue to enhance the effectiveness of our stewardship activities and seek to deepen responsible investment with sophisticated ESG investment that contributes to ensuring profitability and resolving social issues.
Through these initiatives, we will continue to meet the expectations of stakeholders by ensuring stable earnings power and soundness while we contribute to resolving social issues.

Asset Management Initiatives

figure : Asset Management Initiatives

Promoting ESG Investments
Active ESG investments that contribute to sustainable development of society, while securing profitability

  • Investment in theme-type bonds
    of Multilateral Development Banks

    Image provided
    by: Asian Development Bank

  • Renewable energy-related
    project finance

    Image provided
    by: Eiwa Electric Power Co., Ltd.

  • "Impact investing" to create
    an impact on both profitability
    and society

    Image provided by:CureApp, Inc.

  • "ESG Integration"
    to integrate ESG information
    into investment process

  • 17. Partnerships for the Goals

    Contribute
    to society