US insurers’ mortgage loan exposure rises by 8.6% to $727bn

Written by Adam Cadle

16/08/2023

US insurance companies reported $727bn in BACV in mortgage loans as of year-end 2022, an increase of 8.6% from the prior year, the NAIC has revealed.

Mortgage loans represented 8.9% of the US insurance industry’s total cash and invested assets, and around 13% of life companies’ cash and invested assets. Commercial mortgage loans totalled $626bn at year-end 2022, or 86.1% of US insurers’ mortgage loan exposure.

Multifamily properties represented the largest share of US insurers’ commercial mortgage loan portfolio at around 32%, followed by office properties at almost 22%.

The office sector of the commercial real estate (CRE) market continues to be under pressure as a result of occupancy and usage issues continuing from the COVID-19 pandemic. Furthermore, the commercial real estate market is also facing potential issues arising from increased interest rates affecting existing commercial mortgages that are due for refinancing, as well as mortgages for the financing of new projects.

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