US insurers record $1.5bn asset exposure to Russia in 2021

Written by Adam Cadle

25/03/2022

US insurers held $1.46bn in Russian bonds or stocks as of year-end 2021, with 85.8% of that total invested in Russian sovereign debt, according to S&P Global Market Intelligence.

Life companies were responsible for most Russian investments, holding £1.3bn as of 31 December 2021. This accounted for around 89% of the holdings across the entire US insurance industry. Holdings in Russian sovereign debt stood at $1.14bn; the remaining $162m was in Russian corporate securities, bonds or common stock.

P&C insurers’ total investments were $145.4m at the end of 2021; health insurance companies held $15.6m in Russian securities.

Northwestern Mutual Life Insurance Co. had the largest exposure to Russian securities at the end of 2021 due to it holding $414.1m in government debt. The US-based affiliates of MetLife reported $189.3m in Russian bonds as of 31 December 2021, the second-largest aggregate reported holdings. A company spokesperson for the New York-based insurer said the holding company’s net exposure to Russian bonds is now down from the end of last year and constitutes a small fraction of its $488bn in general account holdings.

American International Group was third on the list with $142.3m in Russian investments as of the end of 2021, followed by the affiliates of Massachusetts Mutual Life Insurance Co.

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