Life insurers' £137bn debt pile revealed

The full extent of the exposure of British life assurers to the plummeting corporate bond market was revealed last night when industry expert Ned Cazalet said the sector had invested around £137bn in such debt, with roughly two-thirds of it in banks and financial companies.

The market in corporate bonds, which are sold to investors by firms to fund borrowing, has been hit by the global financial crisis and by fears that companies could default on their debt repayments as the recession bites.

http://www.guardian.co.uk/uk/2009/mar/08/life-assurance-debt-bonds