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 $330 billion in such bonds in 2015, and the life insurance industry invested $159 billion, according to the Federal Reserve. (See here and here for further information on insurance industry investments.)

Insurance Company Holdings of U.S. Municipal Securities And Loans, 2011-2015

($ billions, end of year)

  2011 2012 2013 2014 2015
Property/casualty insurance companies $331.0 $328.1 $326.4 $322.1 $330.4
Life insurance companies 121.8 131.5 141.6 147.8 158.5
Total $452.8 $459.6 $468.0 $469.9 $488.9

Source: Board of Governors of the Federal Reserve System, June 9, 2016.

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