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Life insurer Athene, which has a reinsurance arm on Bermuda, could be one of the top insurer creditors to failed US bank Silicon Valley Bank, according to research by the brokerage arm of Wells Fargo.
All in all, the US insurance industry may face as much as $800 million in losses from investments in the collapsed bank, resolved by regulators on Friday March 10.
US insurer holdings, measured from fair values readings on the Q3 2022 portfolio, likely came to $817 million, Wells Fargo said. In the UK, HSBC will the UK unit for £1 in a deal that protects deposits.
The US creditor list is dominated by life insurers. Athene tops the list with a $112 million position that accounts for 4.5% of the US group's statutory surplus. Athene has stressed, however, that the exposure is less than 0.65% when also accounting for capital held in Bermuda.
Lincoln Financial follows with $90 million or 1.1% of its US statutory surplus. TIAA, New York Life, MassMutual and Protective also feature highly.
P&C insurers are also facing losses. Swiss Re has potential liabilities of $27 million, The Hanover $22 million, AXA $18 million and WR Berkley $17 million.
“We cannot be sure if companies have bought or sold additional securities since 9/30/22,” analysts at Wells Fargo acknowledged.
Athene, US bank, Silicon Valley Bank, Brokerage, Insurance, Reinsurance, Bermuda