Deutsche Bank: Japanese Life Insurance Update

Deutsche Bank DB analysts recently met with Japanese domestic life insurers. Here are their takeaways. - Capital requirements are increasing. Short term revisions will cut solvency margin ratios in half, as a result of higher charges on risk assets and stricter margin definitions. - M&A has been focused in Asia. According to DB, there was not much interest in US acquisitions in the near term. Most of the focus is on China, Taiwan, and other parts of Asia. - Domestic insurers are selling annuities through banks but are still cautious on selling life or medical insurance.