U.S. life and annuity issuers have seen a dramatic increase in commercial mortgage loan holdings over the past five years, leading to an increased exposure to low-quality credit, according to AM Best.
The issuers commercial mortgage loan holdings have increased to $522 billion, from $382 billion in 2015.
(Related: COVID-19 Dings Life Insurers’ Commercial Mortgage Returns)
In 2019, low unemployment and rising retails sales made investments in commercial properties look good.
The COVID-19 pandemic has changed things.