Year-End 2016 U.S. Insurance Industry's Exposure to the Financial Sector
By Jean-Baptiste Carelus of NAIC's Capital Markets Bureau
"This special report provides an update to the NAIC Capital Markets Bureau Special Report titled Update on the U.S. Insurance Industry's Exposure to the Financial Sector, published on July 29, 2016. This update presents the U.S. insurance industry's corporate bond and equity exposure to banks, diversified financial services and insurance in the U.S. and Europe as of year-end 2016. The report also includes non-U.S. domiciled financial sector exposure, a review of trends in the financial sector and exposure to derivatives counterparties. As of year-end 2016, U.S. insurers reported exposure to financial sector bonds and stocks with a book/adjusted carrying value (BACV) of $405.7 billion, which includes $331.2 billion in bonds and $74.5 billion in unaffiliated preferred and common stock. In comparison, as of year-end 2015, U.S. insurers had a total of approximately $417.1 billion in financial sector bonds and unaffiliated stocks."