This exposure is predominantly in North America, with MFC and GWO having limited exposure in Asia and Europe, respectively.
Over the past decade, there has been a significant shift in investment strategies among these insurers, notably with a reduction in the proportion of office real estate within their CRE property portfolios.
Despite this trend, office real estate investments remain substantial, particularly for IAG, which accounts for 85 percent of all commercial properties held.
This exposure is mitigated by high average occupancy rates of 87 percent and the high quality of tenants who often have long-term leases.
MFC’s investment in office real estate is also notable at 57 percent of the CRE property portfolio, with a similar occupancy rate and a significant portion used for its operations, thus considered less risky. SLF and GWO’s largest proportions of CRE properties are in industrial uses and multifamily buildings, indicating a diversification strategy.
