S&P: P&C Insurance Industry Reverses Trend, Increases Municipal Bond Holdings in 2020

Property and casualty insurers boosted their stakes in municipal holdings in 2020 for the first time in several years amid a positive climate for government-issued debt securities.

Insurance companies hold significant investments in municipal bonds, with the P&C space being the largest holder by sector. Since at least 2016, the P&C industry has been reducing its positions in municipal bonds, though they have remained a significant part of the industry’s investable assets.

Year-end 2020, municipal bonds accounted for roughly 13.5% of the P&C industry’s investable assets, with a reported carrying value of $271.47 billion, an S&P Global Market Intelligence analysis shows. The year-end 2020 values were up $11 billion compared to the previous year, but down nearly $60 billion versus 2016. Full-year statutory insurance data from late filing companies, as well as group-level calculations, are not available until at least April of each year.

Continue reading.

2 Jul, 2021



Copyright © 2024 Bond Case Briefs | bondcasebriefs.com