Life insurance companies posted a higher return on their private commercial mortgage investments in the third quarter of 2015, compared to the second quarter, according to LifeComps.
The mortgage investments generated a 1.62% return, up from the previous quarter's 1.23%, according to the LifeComps Commercial Mortgage Loan Index.
Most of the return, 121 basis points, came from income; the remaining 41 basis points came from price. The gain in price was a result of falling yields on Treasuries with terms of at least two years.
The rolling 12-month return in the third quarter rose to 4.23% from 3.28% in the second.
Life insurance companies that participate in the LifeComps study are Allstate Life Insurance Co., CIGNA Investment Management, AXA Equitable, John Hancock, Northwestern Mutual, Principal Financial, Prudential Insurance Company of America and TIAA-CREF.
