Life insurers increase holdings of government bonds

Statistical News Release
Date 11 December 2014

In the third quarter of 2014, total government bond portfolios of Dutch life insurers increased by EUR 7 billion to EUR 104 billion, continuing the upward trend seen over the past few years, figures released by De Nederlandsche Bank show.

The Dutch life insurers' government bond portfolios have shown increases since 2009, when they totalled some EUR 65 billion. Factors explaining the rise are revaluations (increased bond prices due to lower capital market rates) and net purchases. Government bond holdings increased by EUR 18 billion over the first three quarters of 2014.

Life insurers: government bond holdings

At 30 September 2014, government bonds accounted for 40% of all investments made by life insurers (excluding derivatives), as against 34% at year-end 2009. The share of mortgage loans has also shown growth over this period. The relative increase of these two asset classes has gone at the expense of corporate bonds, equities and liquidity in life insurers' investment portfolios