Municipal Bonds

Insurance companies help fund the construction of schools, roads and healthcare facilities as well as a variety of other public sector projects through their investments in municipal bonds. The property/casualty insurance industry invested $326 billion in such bonds in 2013, and the life insurance industry invested $141 billion, according to the Federal Reserve.

INSURANCE COMPANY HOLDINGS OF U.S. MUNICIPAL SECURITIES AND LOANS, 2010-2014

($ billions, end of year)

  2010 2011 2012 2013 2014
Property/casualty insurance companies $348.4 $331.0 $328.1 $326.4 $321.7
Life insurance companies 112.3 121.8 131.5 141.2 147.8
Total $460.7 $452.8 $459.6 $467.6 $469.5

Source: Board of Governors of the Federal Reserve System, June 11, 2015.

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