The insurance sector invests one in every three euros in public debt, according to a new report by MAPFRE Economics.
The report, ‘Global savings after the pandemic and insurance industry investments’, also finds that most insurance companies’ investments are allocated to fixed income, both sovereign and private debt, which greater weight on the former.
This, MAPFRE says, shows that insurers’ balance sheets are generally very conservative; the nature of the business requires it, given the need to achieve the right match of term and interest rate between the liabilities assumed and the investment instruments backing them.
