Total assets of euro area insurance corporations decreased to €8,163 billion in the third quarter of 2023, from €8,270 billion in the second quarter of 2023. Debt securities accounted for 33.8% of the sector’s total assets in the third quarter of 2023.
According to European Central Bank, the second largest category of holdings was investment fund shares (30.5%), followed by equity (14.5%) and loans (6.9%).
Holdings of debt securities decreased to €2,761 billion at the end of the third quarter of 2023 from €2,829 billion at the end of the previous quarter.
Net sales of debt securities amounted to €2 billion in the third quarter of 2023; price and other changes amounted to -€66 billion. The year-on-year growth rate of debt securities held was -1.8%.
Looking at holdings by issuing sector, the annual growth rate of debt securities issued by euro area general government was -4.8% in the third quarter of 2023, with net sales in the quarter amounting to €11 billion.
As regards debt securities issued by the private sector, the annual growth rate was 0.5%, and quarterly net purchases amounted to €5 billion. For debt securities issued by non-euro area residents, the annual growth rate was 0.9%, with quarterly net purchases of €4 billion.
Insurance corporations’ holdings of debt securities by issuing sector
Turning to insurance corporations’ holdings of investment fund shares, these decreased to €2,493 billion in the third quarter of 2023, from €2,527 billion in the previous quarter, with net sales of €2 billion and price and other changes of -€31 billion.
The year-on-year growth rate in the third quarter of 2023 was -0.1%.
The annual growth rate of euro area money market fund shares held by insurance corporations was 13.6% in the third quarter of 2023, with net purchases in the quarter amounting to €2 billion.
Insurance corporations’ holdings of investment fund shares by issuing sector
As regards holdings of euro area non-money market fund shares, the annual growth rate was -1.1%, with quarterly net sales amounting to €4 billion.
For investment fund shares issued by non-euro area residents, the annual growth rate was 4.9%, with quarterly net sales amounting to € 0.4 billion.
In terms of main liabilities, total insurance technical reserves of insurance corporations amounted to €5,810 billion in the third quarter of 2023, down from €5,934 billion in the second quarter of 2023.
Assets and liabilities of euro area insurance corporations
Life insurance technical reserves accounted for 87.8% of total insurance technical reserves in the third quarter of 2023.
Unit-linked products amounted to €1,531 billion, accounting for 30.0% of total life insurance technical reserves.
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