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Property/casualty insurers tend to take very little investment risk due to restrictive state regulatory guidelines, said Edward Keane, a senior financial analyst with A.M. Best Co.
They also are reluctant to take on added investment risk since their balance sheets already are risk-inherent, he said.
At year-end 2007, 65.2% of the industry's total invested assets of about $1.3 trillion was invested in long-term bonds; 7.5% was in cash and short-term investments; and 6.5% in affiliated investments.
