US insurance companies have decreased fixed income (FI) ETFs holdings in the third quarter of 2022, according to Fitch Ratings’ estimates in its latest ETF dashboard.
Along with the broad market, insurers decreased their ETF corporate exposures in 3Q22, after significantly increasing it in 1Q22. Government and municipal ETFs saw small inflows from US insurers in 3Q22, due to a flight to quality, the firm says. Overall, US insurance companies decreased their exposure to FI ETFs by USD113 billion in 3Q22.
European and U.S. FI ETFs, with aggregate AUM down 1 per cent in 3Q22, fared better than equity ETFs, where AUM was down 9 per cent. Inflationary pressures and the rising rate environment may bring further volatility, the firm warns.