Report of Allianz and Allstate Woes Inaccurate

Yesterday’s reportthat the balance sheets of Allianz Lifeand Allstate Corp. were laden with default-prone commercial mortgage-backed securities (CMBS) was inaccurate.

Our posting, based on an erroneous news report from the TheStreet.com , said that the insurers held more risky mortgage assets than capital and reserves at the end of 2008.

In the case of Allianz, the company says that TheStreet.com posting misinterpreted an investment classification included in a filing by Allianz, which was amended at the beginning of this week. A company spokesperson notes that all Allianz Life's CMBS are AAA-rated, and the company has no exposure to the riskier mortgage assets consistent with its prudent investment strategy.

Likewise, the contention that Allstate Life Insurance Co. held $6.58 billion in CMBS securities at year-end 2008 is false. The company notes that based on statutory filings, Schedule D, the correct number was approximately $4.2 billion, of which $3.9 billion were rated AA or AAA.

We regret the errors. INN is reviewing the entire TheStreet.com article for factual accuracy.