Life Insurers Have Cut Down on Credit Card Assets: NAIC
August 21, 2019 by Allison Bell
U.S. life and annuity issuers seem to be cutting down on investments in securities backed by consumer debt.
Analysts at the National Association of Insurance Commissioners’ Capital Markets Bureau have raised that possibility in a new report based on insurers’ financial reports. The analysts looked at insurers’ holdings of three classes of asset-backed securities: securities backed by auto loans, credit card debt and student loans.
Life insurers’ holdings of securities backed by credit card debt fell to $4.3 billion at the end of 2018.
That’s down 66%, from a total of $13 billion, that the Capital Markets Bureau reported for the end of 2012, in an asset-backed securities report released in May 2014.