Fitch expects the exposure to ease once the arm merges with sister company Acenda Life, which runs a lower-risk portfolio, with the merger creating Australia's fourth-largest life insurer.
Strategic alliances with global asset managers are emerging as a preferred route for Japanese lifers seeking diversification and higher investment returns.
The development comes as Japanese life insurers are looking to lift portfolio yields after years of balance-sheet rebalancing ahead of new capital rules.
