Insurance companies taking too big a risk on fossil fuels, report says

The US insurance industry is the second largest institutional investor in oil, gas and coal - but it risks losing money if it doesn't change its investment strategy

The US insurance industry, the country's second largest institutional investor in oil, gas and coal with $459bn in fossil fuel investments, needs to divest or face serious threats to its financial stability, according to a report released Tuesday.

The report, funded by Ceres, a Boston-based sustainability advocacy group, analyzes investment data from the country's 40 largest insurance companies, including Prudential, AIG, Metlife, State Farm and Allstate. The report doesn't quantify the potential financial losses but points out the economic challenges that have bedeviled the fossil fuel industry, such as low oil prices and the bankruptcy filings of 69 North American oil and gas producers since the beginning of 2015.