{"id":48197,"date":"2009-11-25T07:17:00","date_gmt":"2009-11-25T12:17:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/fitch-life-insurers-have-150-billion-exposure-to-commercial-real-estate-2009-11"},"modified":"2009-11-25T07:17:00","modified_gmt":"2009-11-25T12:17:00","slug":"fitch-life-insurers-will-be-rocked-by-16-billion-losses-on-commercial-real-estate","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/48197","title":{"rendered":"Fitch: Life Insurers Will Be Rocked By $16 Billion Losses On Commercial Real Estate"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/~~\/f?id=4a70943231fac1326c68d97f&amp;maxX=400\" border=\"0\" alt=\"strip mall empty\" width=\"400\" \/><\/p>\n<p>Life insurance companies currently have $150 billion of commercial real estate exposure, and $308 billion total mortgage exposure according to Fitch Ratings.<\/p>\n<p>The industry needs to brace itself for billions of losses unless commercial real estate markedly improves.<\/p>\n<p>Fitch expects life insurers&#8217; losses on commercial real estate investments to hit 9% of exposure.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.investmentnews.com\/apps\/pbcs.dll\/article?AID=\/20091124\/FREE\/911249988\">Investment News:<\/a> Fitch projects the potential losses from commercial-mortgage-backed securities owned by life carriers to be between $13.1 billion and $16.0 billion. Directly-placed mortgages will generate $5.4 billion to $6.6 billion in losses through 2011, under Fitch&#8217;s core stress scenario.<\/p>\n<p style=\"padding-left: 30px;\">&#8230;<\/p>\n<p style=\"padding-left: 30px;\">Fitch also notes that the steep declines in statutory capital over the last 18 months have hobbled the insurers&#8217; ability to get through an extended downturn.  To date, the life insurers have not recognized material impairments or losses on investments related to commercial real estate, according to Fitch.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.investmentnews.com\/apps\/pbcs.dll\/article?AID=\/20091124\/FREE\/911249988\">Read more here.<\/a><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/fitch-life-insurers-have-150-billion-exposure-to-commercial-real-estate-2009-11#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/bill-ackman-made-800-on-bankrupt-us-malls-already-2009-11\">Bill Ackman Has Made An $800 Million Killing On Bankrupt Commercial Real Estate (GGP)<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/distressed-commercial-real-estate-600-higher-than-2006-2009-11\">Distressed Commercial Real Estate Now 600% Larger Than 2006<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/commercial-real-estate-decline-will-bleed-away-much-needed-city-tax-dollars-2009-11\">Commercial Real Estate Slide Kills City Budgets<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Life insurance companies currently have $150 billion of commercial real estate exposure, and $308 billion total mortgage exposure according to Fitch Ratings. The industry needs to brace itself for billions of losses unless commercial real estate markedly improves. Fitch expects life insurers&#8217; losses on commercial real estate investments to hit 9% of exposure. Investment News: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-48197","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/48197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=48197"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/48197\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=48197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=48197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=48197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}