Moody's Worried About Japan

NU Online News Service, Feb. 5, 1:43 p.m. – Moody’s Investors Service, New York, is placing the insurance financial strength ratings of seven large Japanese life insurers under review for possible downgrade.

Moody’s is worried about the companies because of the “deterioration in the Japanese economy, the unfavorable structure of the life insurers’ operations and their uncertain capital raising prospects,” according to a statement from the Moody’s office in Tokyo.

“All of the Japanese life insurance companies are under significant pressure due to the deteriorating economic conditions and the poor performance of the Japanese stock market,” Moody’s says. “These factors contribute to sluggish sales of new contracts and high instances of policy surrender and lapsation.”