🚹 Breaking News from Japan đŸ‡ŻđŸ‡”

Japan’s insurance sector is facing serious pressure.

Unrealized losses on domestic bond holdings at Japan’s four largest life insurers jumped 125% year-over-year in Q4 2025, hitting a record $86 billion 📉

Even more alarming — these paper losses have exploded 546% since Q1 2024. That’s not a small move. That’s a structural shift.

Nippon Life, Japan’s biggest life insurer and the world’s sixth largest, is carrying $36 billion of those losses alone — up 115% from last year.

So what’s going on?

Japan’s long-term government bond prices have been falling at one of the fastest rates seen in years. When bond prices drop, unrealized losses rise — and insurers are among the biggest holders of those bonds.

Now the pressure is building across the financial system 🏩

To ease the strain, a Japanese accounting body is considering relaxing how life insurers record unrealized losses. That move could soften the impact on paper — but it doesn’t remove the underlying risk.

The big question is whether this is just an accounting adjustment
 or a sign that deeper financial stress is emerging in Japan.

Markets are watching closely 👀

Is this contained — or the beginning of something bigger?

#Japan #Markets #Finance #Insurance #GlobalEconomy

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