Property and casualty insurance companies hold the largest share of their assets in

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Property and casualty insurance companies typically hold the largest share of their assets in tax-exempt municipal bonds and U.S. government securities, as these are considered safe and stable investments that match the long-term nature of the insurance liabilities. Short-term securities may also be held for liquidity purposes, but long-term bonds and stocks are generally avoided due to the risks associated with them. Medium-term corporate bonds may be held as well, but they typically make up a smaller portion of the portfolio.

Property and Casualty Insurance Companies Hold the Largest Share of Their