Cash and invested assets of property/casualty insurance companies totaled $1.38 trillion in 2012. This represents 84 percent of total assets, which were $1.64 trillion. Most of these assets were invested in highly liquid securities (high-quality stocks and bonds, for example, rather than real estate), which can be sold quickly to pay claims in the event of a major catastrophe.
INVESTMENTS, PROPERTY/CASUALTY INSURERS, 2011-2013 (1)
($ millions, end of year)
Bonds in or near default (Class 6) accounted for less than 1 percent (0.18 percent) of all short- and long-term bonds owned by insurers at the end of 2012, according to SNL Financial LC.
INVESTMENTS, LIFE/HEALTH INSURERS, 2011-2013 (1)
($ billions, end of year)
INVESTMENTS, LIFE/HEALTH INSURERS, BOND PORTFOLIO, 2013 (1)