Yamato Mutual Life Insurance Company Ltd. has filed for bankruptcy court protection and hopes to reorganize its operations.
Yamato Mutual, Tokyo, had been trying to meet obligations on policies sold in better times by investing in high-yield investments.
The strategy was starting to work, but the recent investment market turmoil caused the value of the securities in the company’s portfolio to fall dramatically, the company says.
A guaranty fund, the Life Insurance Policyholders Protection Corp., should protect a majority of the policyholders, but some purchasers of products aimed at savers may get less than what they paid in, officials say.
Company executives have issued a statement apologizing for the reorganization filing.