Table 1 identifies the year-end 2020 bond, common stock and preferred stock exposure of the U.S.
insurance industry to oil and gas companies. The industry’s $111 billion book/adjusted carrying value
(BACV) exposure represented approximately 1.5% of the industry’s total cash and invested assets as of
year-end 2020. Oil and gas companies will benefit from the rise in oil prices, and they are currently in a
much better financial position than during 2020 when Brent crude prices briefly fell below $10 per barrel and remained depressed relative to historical levels due to lower demand resulting from the
effects of the COVID-19 pandemic.
Author(s): Michele Wong, Jennifer Johnson and Jean-Baptiste Carelus
Publication Date: 2 March 2022
Publication Site: NAIC