Orient Securities' insurance report says long-dated bonds remain the core of
insurers' asset portfolios as allocation shifts from pure duration extension to
structural optimization. Persistently low rates are compressing coupon and
reinvestment returns; lengthening duration only delays a downward shift in the
yield center. The report expects most listed insurers' net investment yields to
decline YoY in 2025 as high-coupon stock matures and new allocations earn lower
interest. Static estimates show long-duration holdings cut annual reallocation
needs but cannot fully offset low-rate pressure. Currently 30-year government
and local-government bond yields remain above insurers' marginal new liability
funding costs, leaving long-duration assets with coupon coverage and
duration-matching value; the 30Y-10Y spread has widened markedly from 2025 lows.
Insurers' allocation logic is moving to duration matching + term-premium capture
+ timing-driven positioning.
