Seven of Japan's major life insurers announced their half-year corporate results as the euro tumbled to yet another lifetime low of 106.20 yen in Tokyo, down 21 per cent from a peak of 135.10 yen set on on its trading debut on January 4. But the insurers, several of which have been steadily increasing their euro holdings throughout the year, said they had no plans to sell-off the euro to escape further punishment.

"The fact that life insurers are holding on to their euro assets is frankly baffling," said a senior economist at a Japanese commercial bank. "But perhaps they think that the euro has hit a bottom against the yen, or they are still trying to diversify their assets, which are overweight dollar."

Japanese insurers have been major buyers of euro-denominated debt both in therun-up to its launch and for much of this year, and the euro's steep fall has exposed them to hefty currency losses.