Meiji Yasuda faces equity and forex risk despite stable book

AM Best points to large market-sensitive investments within a solid capital base.

Despite Meiji Yasuda Life Insurance Company possibly facing persistent equity and foreign exchange risks, AM Best expects a stable in-force book of business.

The company will also witness a gradually improving domestic interest rate environment and growing overseas contributions, positioning the company to generate solid and sustainable operating profits.

Whilst the company maintains a solid capital base, its substantial equity holdings expose it to market volatility, as seen between March 2024 and March 2025 when absolute capital retreated from a peak of $37b (¥5.8t) before recovering later in the year.

AM Best warned that a material and prolonged decline in premium income or operating profit could trigger negative rating actions. 

Specifically, a significant reduction in risk-adjusted capitalisation (potentially driven by an increase in investment risk) remains a key vulnerability.