FHLB capital stock held by US insurers rises to $7.7bn

Written by Adam Cadle

03/10/2024

Federal Home Loan Bank (FHLB) capital stock held by US insurers totalled $7.7bn at year-end 2023, up slightly from $7.4bn at year-end 2022, according to the NAIC.

The total number of US insurers that were FHLB members at year-end 2023 was relatively consistent YOY at 12% of total US insurers in 2023.

US insurers reported about $142.5bn in BACV of FHLB outstanding advances at year-end 2023, up from $138.5bn at year-end 2022.

Funding agreements continue to comprise the majority of US insurers’ total FHLB advances at 84%, the highest percentage over at least the last six years, and an increase from 76% in 2021.

US insurers pledged a total of $275bn in collateral to the FHLB system at year-end 2023, which was a 15% increase from about $240bn at year-end 2022. Similar to prior years, the majority of FHLB pledged collateral was agency residential mortgage-backed securities (RMBS).

Total US insurers’ investment in FHLB bonds decreased slightly to $8.5bn in 2023, from $8.8bn in 2022, mostly held by large life companies.

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