US insurers’ exposure to CMBS nears $300bn

Written by Adam Cadle

18/09/2023

US insurance companies reported $293bn in commercial mortgage-backed securities (CMBS) at year-end 2022, an increase of 5.6% compared to year-end 2021, figures published by the NAIC have revealed.

CMBS represented 29.9% of the US insurance industry’s total commercial real estate (CRE) exposure and 2.7% of the industry’s total cash and invested assets.

Private-label CMBS accounted for around three-quarters of US insurers’ CMBS exposure at year-end 2022, with agency CMBS accounting for the remainder.

The credit quality of the CMBS portfolio has weakened modestly over time, with CMBS investments carrying an NAIC 1 Designation, declining to 94% from 97% of total exposure at year-end 2022 and year-end 2019, respectively.

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