Life and Health Insurers Have About $99 Billion in Hotel-Backed Investments
April 8, 2020 by Allison Bell
U.S. life and health insurers hold about $99 billion in lodging-related debt, but most should come out of the COVID-19 travel freeze in pretty good shape.
Jennifer Johnson, an analyst with the National Association of Insurance Commissioners’ Capital Markets Bureau, has put data supporting that conclusion in a review of U.S. insurers’ holdings of commercial mortgage-backed securities, or CMBS, that are tied to hotels, motels and other forms of lodging.
A commercial mortgage-backed security is an arrangement that gives an investor a chance to profit on a loan that a company has used to buy real estate, or on a collection of two or more commercial mortgage loans in a “pool” of loans.
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