US insurers’ common stock exposure exceeds $1trn

Written by Adam Cadle

30/09/2022

US insurers’ common stock exposure increased to about $1.2trn at year-end 2021, representing a 21% increase from year-end 2020, figures published by the NAIC have shown.

Total common stock was about 14.6% of US insurers’ total cash and invested assets at year-end 2021, up from 13.3% at year-end 2020.

Property/casualty companies accounted for the largest exposure, at 76% of the total for both year-end 2021 and year-end 2020. Unaffiliated common stock totalled $567.8bn, or 48% of total common stock, relatively consistent in percentage terms with years prior.

Approximately 98% of US insurers’ total common stock exposure was publicly traded. The NAIC Capital Markets Bureau’s analysis of US insurers’ publicly traded common stock investments showed that its market value decreased by 13.4% year-to-date through August 2022, compared to a 17% decrease for the Standard & Poor’s 500 index.

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