Japan's third-largest property and casualty insurance company has recently made a major move that has attracted attention—they plan to increase their overseas high-yield credit investments. In simple terms, as domestic insurance business returns become increasingly unattractive, they are shifting their focus to the U.S. market.

The company has already begun deploying investment teams in the United States and is planning to unify the management of private credit and high-yield bonds. The logic behind this strategic shift is clear: low interest rates domestically and squeezed profit margins in insurance operations make waiting and hoping less viable, so it’s better to proactively seek higher-yield opportunities.

From a market perspective, this reflects a common dilemma faced by global capital—under low interest rate environments, institutional investors must continuously expand their investment boundaries to maintain returns. Although the U.S. high-yield credit market carries relatively higher risks, for insurance companies seeking to boost returns, this risk-reward trade-off is becoming increasingly attractive. Similar adjustments in investment strategies are gradually spreading among financial institutions worldwide, which also partly explains why high-yield asset classes have recently garnered significant attention.