BlackRock Finds More Risk Assets at Insurers Than ’08

  • Insurers bought up complex assets to lift returns after crisis
  • Industry’s push into alternative assets also provides benefits

Insurers got burned badly in the 2008 financial crisis. So almost a decade later, BlackRock Inc. scoured the industry’s $5 trillion in U.S. investments to figure out how they would fare if markets crash so hard again.

The answer: It could be worse.

The world’s largest money manager mined regulatory filings of more than 500 insurance companies and modeled their portfolios in a similar downturn. The stockpiles — underpinning obligations to policyholders across the nation — would drop by 11 percent on average across more than 260 property and casualty insurers in that group, according to its calculations. That’s significantly steeper, BlackRock estimates, than their “mark-to-market” losses during the depths of the crisis…

BlackRock Finds More Risk Assets at Insurers Than ’08


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