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Energy Bet of $459 Billion Seen as Overlooked Risk for Insurers

  • Advocacy group sees ‘systemic financial risk’ in holdings
  • Climate change, push for renewables can undermine investments

U.S. insurers are risking financial stability by holding $459 billion of energy-related investments without considering the “broad and deep” threat that climate change poses to the assets, according to an environmental advocacy group.

Ameriprise Financial Inc., Lincoln National Corp. and Voya Financial Inc. have more than 10 percent of their bond investments in the oil and gas sectors, roughly double the median of the industry, Boston-based Ceres said in a report Tuesday. Prudential Financial Inc., with the biggest equity and bond holdings in oil and gas of the 40 insurer groups analyzed, has about 6.3 percent of its bond portfolio in those investments.