January 1, 2010
PRIVATE MORTGAGES
RETURNS IMPROVE IN SECOND QUARTER 2009
Third consecutive quarter of positive total returns
BOSTON / January 1, 2010 – Private commercial mortgages held by
life insurance companies delivered a healthy 4.57% total return in
third quarter 2009, improving upon returns of 2.52% in second
quarter, 1.63% in first quarter, and -3.16% in fourth quarter 2008,
according to the LifeComps Commercial Mortgage Index.
Of total return in the third quarter, 1.68% was income return and
2.89% was price return. The positive price return resulted from both
improved loan valuations and lower treasury yields.
Third quarter’s performance lifted the annual total return to
5.23% after three successive quarters of negative annual returns.
Income return over twelve months was 6.82% and price return was
-1.58%.
Retail outperformed other property types for the year with an
annual total return of 5.84% compared to 5.80% for office, 5.25% for
apartments and 4.83% for industrial.
About LifeComps
The LifeComps Commercial Mortgage Index is the only published
benchmark for the private commercial mortgage market based on actual
cash flow and collateral performance data which has been collected
quarterly from participating life insurance companies since 1996.
Active loans in the LifeComps Index number 6,200 with an aggregate
principal balance of approximately $84.0 billion and market value of
$79.0 billion. The weighted average duration is 3.9 years and
average loan-to-value is 70.8%.
Since its inception, the LifeComps database has tracked
individual cash flows on more than 18,000 loans with principal
balances totaling in excess of $221 billion. More than 3,800 loans
totaling $54 billion have been tracked from origination to
disposition.
Participating life insurers include Allstate Life Insurance
Company, CIGNA Investment Management, AXA Equitable, John Hancock,
Nationwide, Northwestern Mutual, Principal Financial and Prudential
Insurance Company of America. For more information, visit
www.lifecomps.com.
CONTACTS:
For More Information on this Press Release
Northwestern
Mutual Media Relations, Northwestern Mutual
Phone: 800-323-7033
LifeComps Group
Michael Mannix, Director
Phone: 617-429-3047
