A. We all know that insurers pool consumer's money and investment, then pay individual claims. We also know insurance companies' investment philosophies are very conservative. So, how much do insurers make on their investments?
Conning released a report "Life Insurance Industry Investments: Added Risks in 2013" which focuses on 430 insurers' assets and investments, it found the following:
- The life industry's investment assets were about $2,143 billions in 2013.
- Majority of assets still invest in bonds, but due to lower interest environment, Mortgage and Real Estate now represented 11.7% of investment assets, the second largest category after Bonds.
- Common Stocks holdings are $34.2 billions, only 1.6% of total investable assets.
- Overall annual return is about 8.5% in 2013.