OLDWICK, N.J.–(BUSINESS WIRE)–U.S. life/annuity (L/A) insurers have increased their mortgage loan holdings for six consecutive years, with jumps of more than 8% in 2015 and 2016—representing 10-year highs, according to a new A.M. Best report.
“Commercial Real Estate Values Near All-Time Highs, Insurers Remain Diligent Mortgage Underwriters”
The Best’s Special Report, titled, “Commercial Real Estate Values Near All-Time Highs, Insurers Remain Diligent Mortgage Underwriters,” notes that L/A insurers have exposure to commercial real estate in various ways—including actual real estate, commercial mortgage-backed securities (CMBS) and structures containing real estate/mortgage loans. Mortgage loan issuances are the sector’s predominant exposure, as returns have been more favorable than that provided by bond portfolios.