Swedish insurers become net sellers of foreign bonds

Net sales of foreign bonds by Swedish insurance companies hit SEK23bn (€2.6bn) in the fourth quarter of 2011, according to Statistics Sweden (Statistiska centralbyrån).

Instead, these investors made net purchases of Swedish bonds amounting to about SEK42bn (€4.7bn)

“This was a contributing reason to the increase of SEK20bn of total holdings of bonds, which amounted to SEK1.2trn (€136bn) during the fourth quarter. Insurance companies’ holdings in shares and funds amounted to SEK1.38trn an increase of SEK42bn compared to the third quarter,” Statistiska centralbyrån (SCB) said.

Life insurance companies’ holdings in shares and funds hit SEK1.22trn at the end of the quarter, up SEK29bn on the third quarter of 2011.

Non-life insurance companies’ holdings in shares and funds hit SEK161bn by quarter’s end, up SEK13bn.

Total investment assets of all insurance companies was SEK2.94trn (€333bn) at the end of the quarter, split betweeen SEK2.45trn for life insurers, and SEK497bn for non-life insurers, SCB said.

According to the figures, the asset split for all insurance company investments is 47% equities, 43% fixed interest securities, and 10% other investments.

However, there are differences in the asset split between the life and non-life companies. Life insurers have 50% in equities and 40% in fixed income securities, while non-life companies have just 32% in the equities but 58% in fixed income securities.

To read the full report in Swedish with some English text click here:
Swedish insurance companies during the fourth quarter of 2011 – Preliminary data


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