Property/Casualty Industry Investments

Cash and invested assets of property/casualty insurance companies totaled $1.48 trillion in 2013. This represents 84 percent of total assets, which were $1.74 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)

  Amount Percent of total investments
Investment type 2011 2012 2013 2011 2012 2013
Bonds $902,533 $907,509 $926,335 67.26% 65.34% 62.55%
Stocks 238,873 266,063 327,849 17.80 19.16 22.14
     Preferred 11,619 11,930 11,537 0.87 0.86 0.78
     Common 227,254 254,133 316,312 16.94 18.30 21.36
Mortgage loans on real estate 4,969 5,682 7,985 0.37 0.41 0.54
     First liens 4,767 5,428 7,778 0.36 0.39 0.53
     Other than first liens 202 254 207 0.02 0.02 0.01
Real estate 10,374 10,387 9,953 0.77 0.75 0.67
     Properties occupied by company 8,905 8,961 8,462 0.66 0.65 0.57
     Properties held for income production 1,216 1,228 1,249 0.09 0.09 0.08
     Properties held for sale 252 198 243 0.02 0.01 0.02
Cash, cash equivalent and short-term investments 72,608 82,612 83,612 5.41 5.95 5.65
Derivatives 649 592 578 0.05 0.04 0.04
Other invested assets 104,204 108,584 117,588 7.77 7.82 7.94
Receivable for securities 1,529 960 1,485 0.11 0.07 0.10
Securities lending reinvested collateral assets 2,628 2,640 2,637 0.20 0.19 0.18
Aggregate write-in for invested assets 3,568 4,006 2,934 0.27 0.29 0.20
Total cash and invested assets $1,341,904 $1,388,998 $1,480,955 100.00% 100.00% 100.00%

(1) Includes cash and net admitted assets of property/casualty insurers.

Source: SNL Financial LC.

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BONDS

Bonds in or near default (Class 6) accounted for less than 1 percent (0.16 percent) of all short- and long-term bonds owned by insurers at the end of 2013, according to SNL Financial.

 

INVESTMENTS, PROPERTY/CASUALTY INSURERS, 2013

(1) Cash and invested net admitted assets, as of December 31, 2013.

Source: SNL Financial LC.

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