Capital Requirements May Rise For Insurers With CMBS

Some life insurers with commercial mortgage-backed securities in their portfolios may need more capital as a result of changes in risk-based capital requirements by the National Association of Insurance Commissioners, according to Moody’s Investors Service.

Some life insurers with commercial mortgage-backed securities in their portfolios may need more capital as a result of changes in risk-based capital requirements by the National Association of Insurance Commissioners, according to Moody’s Investors Service. Moody’s noted that while insurers that own super-senior CMBS securities and have been aggressive in taking impairments may see a reduction in the requirements, those that have mezzanine securities with less subordination and have been less active in taking impairments may see an increase.

Click here to read the release from Moody’s.