Skip to content
Subscriber Only

Insurers May Lose $4 Billion on Muni-Bond Holdings

U.S. property and casualty insurers, a group that includes Allstate Corp. and American International Group Inc., may lose as much as $4 billion from holdings in municipal bonds, Moody’s Investors Service said.

Losses of $2 billion to $4 billion wouldn’t be catastrophic, the ratings firm said in a statement today. Insurers hold $370 billion of municipal bonds, or about 27 percent of the industry’s invested assets, which may generate more than $10 billion in annual returns, Moody’s said.