US insurers invest $45.4bn in ETFs in 2021; 15% up from previous year

Written by Adam Cadle

20/07/2022

US insurance companies invested $45.4bn in ETFs as of year-end 2021, up by 15% from 2020, according to latest figures published by S&P Dow Jones Indices.

The growth rate has remained consistent since 2004, when insurance companies began investing in ETFs. This growth rate implies a doubling of ETF AUM roughly every four to five years.

US insurers continued to add to fixed income ETFs in 2021. A total of $3.5bn was added in 2021, with US insurers now holding $16bn in total in fixed income ETFs. Insurers took out $1.9bn in equity ETFs.

Life companies added $1.4bn to fixed income ETFs, while removing $550m in equity ETFs. Fixed income ETFs now comprise 60% of life ETF holdings. P&C companies added another $1.1bn to fixed income ETFs. While their fixed income holdings are not as substantial as life companies, they grew fixed income ETF usage by 33% in 2021.

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