The big automobile manufacturers’ financial problems could have some effect on U.S. life insurers’ investment results.[@@]
A team of analysts at UBS Investment Research, New York, has come to that conclusion in an assessment of bond portfolios at 17 life insurers.
The team, led by Andrew Kligerman, looked at the insurers’ holdings of bonds issued by General Motors Corp., Detroit, and Ford Motor Company, Dearborn, Mich.
The ratings of Ford and GM bonds recently fell below investment grade.
At the 17 life insurers that the UBS team reviewed, Ford and GM bonds comprised an average of 0.4% of all cash and invested assets and 2.9% of equity during the first quarter.