US insurers’ exposure to RMBS increases by 17% to $451.2bn

Written by Adam Cadle

25/06/2025

US insurers’ exposure to residential mortgage-backed securities (RMBS) increased 17% YoY to $451.2bn, marking the second consecutive year of double-digit growth, according to the National Association of Insurance Commissioners (NAIC).

This growth coincided with robust RMBS issuance, supported by favourable mortgage market fundamentals including healthy home price appreciation and solid demand.

Agency-backed (agency) RMBS accounted for 68% of US insurers’ RMBS exposure, and private-label RMBS comprised the remaining 32%.

The US insurance industry’s exposure to private-label RMBS grew at a faster rate than agency RMBS in 2024, rising 24% YoY compared to 14%.

P&C companies continue to increase their allocation to agency RMBS and, as of year-end 2024, they are the largest holders among US insurers with $150bn, representing 49% of the industry’s total exposure.

Life companies hold the majority share of private-label RMBS, accounting for 73% of total exposure as of year-end 2024.

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