COVID-19 Dings Life Insurers’ Commercial Mortgage Returns
June 9, 2020 by R. Robin McDonald
Driven by growing COVID-19 related credit concerns, commercial mortgage investments held by life insurance companies posted a -1 % negative return for the first quarter, according to a Trepp LifeComps report released this week.
The total returns on those commercial investments is down significantly from a 0.55 % return on commercial loan investment portfolios for the fourth quarter of 2019, according to Trepp, a leading provider of information analytics and technology for structured finance, commercial real estate, and banking markets.
The total value of approximately 7,600 active commercial real estate loans held by life insurance companies dropped by $3 billion in just three months from $154.5 billion, to $151.5 billion, Trepp reported.