Property-casualty insurers' investment portfolios are generally conservative, and most companies have little subprime mortgage exposure, according to a Bank of America investment analysis on the industry.
The bank study found also that while commercial mortgage backed securities (CMBS) portfolios were large for some companies, they were generally "of very high quality and focused on pre-2005 vintage years."
"Overall, we believe that the investment leverage and risky assets are minimal for most p-c companies," the analysis said. It added that multiline insurers tend to have a higher exposure to risky investments.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
