US insurer exposure to Russia, Ukraine, and oil/gas companies declines from 2020 to 2021

Written by Adam Cadle

19/04/2022

US insurers’ year-end 2021 exposure to Russia (bonds and stocks) totalled $787m in book/adjusted carrying value (BACV) compared to $855m at year-end 2020, according to the National Association of Insurance Commissioners (NAIC).

Most of the Russian bond exposure was in sovereign debt, totalling $757.6m, and was rated in the single C category by the three major credit rating agencies, reflecting a significant probability of default, prior to their ratings withdrawal. Exposure to Ukraine bonds and stocks was less than $100m in both 2020 and 2021.

US insurers’ exposure to oil and gas companies decreased by 8% to $102.2bn at year-end 2021, from $11bn at year-end 2020.

Ongoing turmoil resulting from Russia’s invasion of Ukraine has resulted in a negative impact on global economic growth, and it has increased inflationary pressures as world economies attempt to recover from the impacts of the COVID-19 pandemic.

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