THE NEW ENGLAND REALIGNS INVESTMENTS
BOSTON, March 4 /PRNewswire/ -- The New England, a major insurance and investment company, announced it has substantially repositioned its investment portfolio, bolstering its high-quality bonds and reducing mortgage and real estate holdings. For example, the company has expanded its public bonds from 16 percent to 26 percent of assets, while pruning mortgages from 39 percent to 27 percent.
Increased Higher-Grade Bonds, Liquidity
"We have boosted the size and quality of our bond portfolio to enhance our financial flexibility," says Peter Harrington, vice president, public relations. As a percent of assets, The New England's holdings of high-quality bonds (primarily government agency bonds) grew from 13 percent to almost 24 percent between 1987 and 1992.
Curtailed Mortgages, Equity Real Estate
At year-end 1992, The New England held $3.3 billion of mortgages, representing 27 percent of General Account assets, about 31 percent lower than the company high of $4.8 billion in 1989. "This substantial shrinkage resulted from a concerted effort to reduce company holdings," explains Harrington. "We have also been selling equity real estate investments, largely industrial and residential properties, which are in demand. During the past five years, we sold close to $500 million of real estate, despite a depressed market. Our real estate portfolio contributed over $40 million of realized capital gains to the company's General Account in 1992," adds Harrington.
Realignment for strength
By realigning its investments the company has been responding to changes in the economy, which now favor a more conservative investment portfolio, Harrington notes. "In 1993 we plan to further augment our capital strength while continuing to take major steps to reduce exposure in the real estate and mortgage areas." -0- 3/4/93 /CONTACT: Susan Bumstead of The New England, 617-578-4227/
CO: The New England ST: Massachusetts IN: INS; FIN SU:
TM -- NE007 -- 3087 03/04/93 14:56 EST
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|Date:||Mar 4, 1993|
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