US insurance industry’s cash and invested assets close in on $9trn

Written by Adam Cadle

06/05/2025

The US insurance industry’s total cash and invested assets increased by 5.3% YOY, reaching $898trn as of year-end 2024, according to the National Association of Insurance Commissioners (NAIC).

Bonds, common stocks, mortgages, and other long-term invested assets reported in Schedule BA remained the four largest asset classes.

Schedule BA assets and mortgage investments grew faster than US insurers’ overall investment portfolio, increasing by 7.8% and 6.5%, respectively, compared to the prior year.

The share of bonds in the US insurance industry’s investment portfolio declined slightly to 60.4% at year-end 2024, while the share of cash and short-term investments increased to 6.3%.

Among bond holdings, the fastest-growing segments in 2024 included private-label residential mortgage-backed securities (RMBS), agency-backed RMBS, and asset-backed securities (ABS) and other structured securities, with exposure increasing 23%, 14%, and 12%, respectively, YOY.

Bond credit quality improved, reaching its strongest level since 2007, with bonds designated NAIC 1 and NAIC 2 comprising 95.1% of total bond holdings as of year-end 2024.

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