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US life insurers driven to riskier assets

Low bond yields hurting profitability of insurance products with guaranteed returns

MetLife is one of the largest investors in the property market, with nearly US$55 billion in real estate assets - PHOTO: BLOOMBERG

[NEW YORK] THE rock-bottom yields on offer in the corporate bond market are putting pressure on investment returns for US life insurers and driving them into riskier and less liquid investments such as private equity and infrastructure debt, insurers said. Low rates have hurt insurer investment