Featured Sponsor
| Store | Link | Sample Product |
|---|---|---|
| UK Artful Impressions | Premiere Etsy Store |
 |
Aviva and other UK life insurers are incorrectly priced due to fears over exposure to commercial property, according to the Royal Bank of Canada (TSX:RY).
Hammering home the point on what is RBC second note On the subject in less than a week, the Canadian bank says it’s crucial to delineate between direct property investment and commercial mortgages.
While direct investment carries higher growth potential, commercial mortgages generally carry lower risk.
“Most importantly, the income insurers receive through commercial mortgages is extremely secure, due to the choice of high-quality counterparties, which has improved significantly over the past two decades.
“In addition, these mortgages have conservative lending to values (LtV), which provides additional protection, and the property is used as collateral for the loan.”
According to RBC, UK life insurers’ exposure to CRE equals 54% of share capital, of which 20% is directly owned and 34% commercial mortgages or CMBs.
The risks for the two are completely different, the bank says, and the risk of insurers running into trouble with commercial mortgages is less than current UK life share prices suggest.
RBC has ‘outperform’ ratings on Aviva, Just Life, Legal & General, Chesnara, Phoenix and M&G.
—————————————————-
Source link
We’re happy to share our sponsored content because that’s how we monetize our site!
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| ASUS Vivobook Review | View |
| Ted Lasso’s MacBook Guide | View |
| Alpilean Energy Boost | View |
| Japanese Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| Liberty Shield | View |