Investing in the Land of Enchantment
A New Mexican purchasing life insurance or paying their regular policyholder premium – like policyholders throughout the country – takes comfort in financially protecting their loved ones.
But what they may not realize is that they are indirectly investing in communities, states, businesses and the country overall. Life insurers direct policyholder dollars into a wide range of sectors – sectors that put roofs over families’ heads, educate children, fuel economic activity, spur job growth and more.
In New Mexico, life insurers invest in:
Affordable Housing: $110 million overall, including $103 million in bonds issued by the New Mexico Mortgage Finance Authority.
Education: $113 million in bonds issued by educational entities, including the Albuquerque Municipal School District, the Taos School District and the Aztec School District.
Apartments/Multifamily: $194 million in mortgage loan investments in Albuquerque, Las Cruces, Santa Fe and more cities.
Retail: $162 million in mortgages to an industry providing nearly one-quarter of the jobs in the state.
Agriculture: $141 million in mortgage loans in Roswell, Hobbs, Portales, Deming and more towns and cities throughout New Mexico.
Industry: $135 million in industrial mortgage loans throughout New Mexico.
Life insurers also invest in stocks and bonds issued by New Mexico-based companies. In all, they have invested $32 billion into the state’s economy.
ACLI’s Chief Economist Andrew Melnyk documented that life insurer investments in New Mexico exemplify the industry’s investments nationwide – in state and local governments and businesses that are strong and reliable.
“The gains in these investments play an essential role in making life insurer products accessible and affordable,” said Melnyk. “And the investment gains also help pay benefits to policyholders and their beneficiaries.”
Life insurers pay out $6.6 million daily to New Mexicans in life insurance, annuities, long-term care and disability income insurance.
As Andrew noted, it is a virtuous circle. Premium payments provide peace of mind to policyholders. Those premiums help build communities and provide solid returns, which helps keep the cost of life insurer products low and pay benefits. New Mexicans can likely expect life insurers to continue investing heavily in their state.