US life insurers exposed to $130bn of CMBS
Majority of exposures are to senior tranches
US insurers held $190 billion of commercial mortgage-backed securities (CMBS) at end-2019, of which 75% filled the portfolios of life firms, data from the National Association of Insurance Commissioners (NAIC) shows.
Of this total, $173.5 billion qualified for NAIC designations, meaning they are factored into the computation of insurer risk-based capital requirements. Sixty-eight percent of this amount relates to senior tranche exposures and just 2% to subordinated tranches.
The majority (72%)
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