US Life Insurers to Suffer Mild Commercial Loans Losses Compared to Banks
Moody’s Investor Services, learning from lessons received 20 years ago, predicts in a report that U.S. life insurers will suffer a less due to commercial-mortgage losses compared to banks. The commercial real estate market last went through a crisis 20 years ago which resulted in major losses for the life insurers.
“Life insurers’ portfolios today demonstrate that they have learned from past missteps dealing with commercial real estate,” said Senior Vice President Jeffrey Berg. Right now, the sector has only moderate exposure to commercial loans and these loans were well-diversified across geographies and property types as well as these loans were conservatively underwritten and maturities were well-distributed.
Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.


