Results from a recent survey by CRE Financial Council (CREFC) and Trepp about commercial mortgage investment point to robust performance within insurance portfolios. The survey used industry data from January 1 to December 31, 2011 to assess investment performance during the downturn and for overall benchmarking purposes.
"These results provide clear evidence of extremely solid investment performance within insurance company portfolios," said Todd Everett, managing director and head of real estate fixed income at principal real estate investors and chair of CREFC's portfolio lenders insurance company sub-forum. "They also demonstrate the reasons we are seeing increasing allocations in commercial mortgages from this sector. The lowering level of losses and minor levels of high risk seem to indicate that insurance companies are benefitting from the recovery in real estate fundamentals."