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Embracing the Asset Owner Principles: A Commitment by MetLife Japan

MetLife Life Insurance Co., Ltd. is proud to announce its acceptance of the "Asset Owner Principles" announced by the government. Under the leadership of CEO Dirk Osteen, the company recognizes the importance of this framework in achieving a robust asset management environment as part of the government-mandated "Asset Management Nation Realization Plan."

The Asset Owner Principles, formulated in August 2024, establish a foundation for fiduciary duties aimed at safeguarding the interests of beneficiaries. These principles underscore the necessity for asset owners to engage in responsible management practices that resonate with the best interests of their clients.

For MetLife, the core aim has always been to ensure the stable disbursement of future insurance benefits. This mission drives the robust investment strategies formulated under stringent risk management policies, focused mainly on generating stable yields through diversified investments. The company is committed to staying true to its purpose of walking alongside customers toward a reliable future, continuously refining its asset management practices in line with the Asset Owner Principles.

Framework for the Asset Owner Principles Implementation

Principle 1: Defining Investment Objectives

According to the first principle, asset owners must establish a clear purpose for their investment that considers the best interests of beneficiaries. This involves making appropriate decisions based on economic and financial factors while regularly reviewing investment objectives and policies as situations evolve.

At MetLife, we have committed to ensuring stable future payments of insurance benefits, thereby securing our clients' financial peace of mind. Our asset management policy emphasizes asset liability management (ALM), guiding investment strategies to align with liability characteristics and focusing on diversified holdings to maintain stable returns. Annual investment plans are formulated based on market conditions and are adapted as necessary to remain relevant.

Principle 2: Expertise in Asset Management

Principal two highlights the imperative for asset owners to act with professional insight. This requires establishing a structure that includes acquiring necessary talent and, if needed, tapping into external expertise.

MetLife has established clear responsibilities for our asset management leaders, ensuring internal regulations define their authority. Through initiatives such as staff training and recruitment for specialized roles, we maintain an adept team dedicated to asset management. Furthermore, performance evaluations for our asset managers ensure that the asset management system functions effectively to optimize outcomes.

Principle 3: Risk Management in Investments

The third principle stresses that investment choices must prioritize the interests of beneficiaries over self-interest. This includes adequate risk management, particularly concerning diversification and effectively selecting third-party asset managers.

We adhere to stringent regulations on risk management, ensuring asset diversification while executing our investment strategies, aimed at consistently providing anticipated insurance payouts. When engaging third-party firms for asset management, we strictly assess alignment with our investment objectives during regular reviews, ensuring optimal oversight throughout the process.

Principle 4: Transparency and Accountability

To fulfill our accountability towards stakeholders, the fourth principle mandates the need for asset owners to provide transparent information regarding their investment activities.

MetLife strives to meet these obligations through our disclosure documents, showcasing investment performance and enhancing stakeholder understanding through comprehensive reporting mechanisms.

Principle 5: Stewardship Activities

Lastly, the fifth principle emphasizes the necessity of engaging in stewardship activities that contribute to sustainable growth of investment targets.

MetLife proudly asserts its acceptance of the Japanese Stewardship Code, formally outlining our approach to stewardship in investment practice and reporting on our activities in line with these guidelines.

In conclusion, MetLife Japan is dedicated to upholding the Asset Owner Principles while endeavoring to protect the interests of our clients through forward-looking and responsible asset management practices, ensuring that our operations align with the evolving needs of the market.

For more information, visit MetLife Japan.