0, 10, Japan and Japan life insurance company (hereinafter referred to as "big and life") to the Tokyo District Court filed for bankruptcy protection, becoming the financial crisis in Japan in the first bankruptcy of financial institutions.
Daiwa life notice that the company will be Oct. 11 -15, in Tokyo, Japan, Osaka, Nagoya, Sendai, Hiroshima, Fukuoka, the venue of the six, namely that investors will be held, the company will start insolvency proceedings, the company status quo As well as forecasts for the next note.
Daiwa life of the closure of news, the Japanese Nikkei stock market had plunged 11 percent. Daiwa life in the Tokyo conference held and forced to start insolvency proceedings, is due to the impact of the crisis by the time the United States, the value of securities held by the company to shrink, resulting in a loss of the expansion, as of the end of the third quarter of 2008, total debt has been as high as 2695 Billion yen (about 27 billion U.S. dollars).
The Reuters report said, and life insurance has been actively seeking the return on investment to make up for high operating costs in its portfolio, placed in hedge funds and real estate investment trust (REIT), and other alternative asset ratio is relatively high.
Daiwa life that so far this year, the company has to make up for operating costs and reduce financial losses to take positive measures, including seeking strategic investors, but ultimately failed. However, the global financial market turmoil intensified, the stock market decline, credit crunch and a series of problems the company's investment in securities such as a sharp drop in asset management business, with the result that since 2008 a net loss of 110 billion yen in liabilities, more than 11,490,000,000 yen .
At the same time, and life, said its core business - life insurance - to maintain steady growth, in order to protect the interests of policyholders, the company needed "as soon as possible to find the best way", that is, filed for bankruptcy protection. Japanese officials and market participants also said that the pursuit of a big investment in high-risk and life, and atypical of the Japanese insurance industry, does not mean that other financial institutions will follow its step-by-step.
However, history always repeats amazing.
"It is because Licha Sun in the 1990s, a large number of Japanese life insurance companies into the liquidity trap era, high-interest rate policy to make these companies very difficult, a number of small and medium-sized insurance companies close down one after another from Japan's life insurance industry has become big and not strong, This is a moment of Japan's life insurance industry from the brilliant turning point toward a recession. "Orient Securities analyst Wang Xiaogang said.
Japanese life insurance company closed down the last incident took place in 2001. At that time, TokyoMutualLifeInsuranceCo. Filed for bankruptcy protection, debt amounted to 980,000,000,000 yen; KyoeiLifeInsuranceCo. In 2000, filed for bankruptcy for the post-war Japan's largest companies, the debt is as high as 4.5 trillion yen.
Previous financial crisis, a number of signs after the collapse of the company will be involved in more small and medium-sized companies, even large and medium-sized companies. Oct. 10, Prudential Financial Group has become a quarterly profit warning issued by major insurance companies.
For life insurance companies show a profit warning after another reason, one analyst said that life insurance companies in the mortgage securities and the stock market, bond market, such as increasing the loss of their annuity from the original business was handling fee income as a result of stock market operations The loss dropped, resulting in the life insurance company stock prices and even insurance shares at a price of panic, the need to refinance in order to maintain credit ratings.
The current financial crisis is still in the middle of the future will also have a number of financial institutions into a vortex of the crisis, Wang Xiaogang analysis.
