Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Annuities

Hotels Boost Life Insurers' Q3 Commercial Mortgage Results: Trepp

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • Multifamily mortgage investments produced the lowest returns.
  • Income held up well.
  • Gains in the latest quarter were lower than gains in the year-earlier quarter.

Yields on U.S. life insurers’ commercial mortgage investments increased a little in the third quarter, according to analysts at Trepp.

The easing of COVID restrictions on travel improved the performance of loans tied to hotels and other forms of lodging, and the lodging-related loans did better than the other types of loans that Trepp tracks.

Trepp had 7,991 loans on its life insurance commercial mortgage index tracking list in the third quarter, up from 7,568 a year earlier. The total loan balance increased to $157 billion, from $149 billion.

Trepp’s life insurance commercial mortgage performance index increased 0.63%. That compares with a 1.71% increase in the third quarter of 2020.

The amount of loan value appreciation included in the index fell 0.37%, but the value of the loans’ income increased 1%.

Trepp tracks five types of commercial mortgage loans. Here’s how those types of loans have performed over the past 12 months:

  • Lodging: Up 5.99%
  • Industrial: Up 4.05%
  • Retail: Up 3.62%
  • Office: Up 3.56%
  • Multifamily Residential: Up 2.81%

(Photo: John_T/Shutterstock)

Allison Bell

Think_Allison

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.