The country insurers' offshore asset allocations will likely remain much lower than the regulatory limit of 15% this year, despite their need to locate higher levels of return.
Moody’s and Fitch Ratings say that emerging market defaults are increasingly likely to hit record highs, with Asia-Pacific corporates looking particularly vulnerable.
Japanese life insurers are well-suited to weather long-term global turbulence as the coronavirus spreads, but certain investment strategies might turn sour, say rating agencies.
Korean securities companies will continue to supply domestic asset owners with new overseas alternative investments, but they are taking increasingly higher risks in the process.
Although new themes are emerging in portfolios, the overall risk approach remains fairly conservative, ratings agencies tell AsianInvestor.
The rating agency is appealing against sanctions imposed by the Hong Kong regulator for a negative report on Chinese companies. If the decision is upheld, price discovery will suffer.