Allstate's Moran

NEW YORK CITY-When the capital markets crunch developed, some life insurance companies stepped up investment in commercial real estate, eager to fill their books with high quality projects and paper underwritten to more realistic credit standards. Others, including Allstate, pulled back a bit in response to the turmoil. Now, however, the company is rethinking that position.It is a change in attitude for the life insurer -– but a subtle one, Michael Moran, senior portfolio manager and head of the Real Estate Portfolio Management Group at Allstate, is quick to say. Moran is responsible for strategic planning, risk management and new product development for the company’s $20 billion portfolio of commercial mortgages, CMBS, REIT debt, B-Notes CRE CDO’s and real estate fund investments.”Not much has changed overall [in the past six months],” he tells GlobeSt.com. “Life insurance companies are still lending — but at a reduced pace. Some companies have invested at a faster pace this year than they normally would have. Others have done the opposite. We are one of those companies that remained less active – and will likely pick up the pace soon.” Overall, though, he says, Allstate’s real estate lending’s pace will not match that of the last few halcyon years.

GlobeSt.com: Are you investing in CMBS at all these days?

Moran: We have had a historically high allocation to CMBS and we are still active today.