Group Annuities Investment Turn Negative In FY10

The average return for group annuities in special accounts which Japan's six largest insurers invest in on behalf of corporate pension funds was minus 2.64% in fiscal 2010, compared with 18.59% a year earlier, according to Nikkei. The sharp deterioration in investment return is mainly attributed to a drop in domestic stock prices. In addition, the yen's sharp rise to the 76 level against the dollar hurt investments in foreign bonds.