US insurers report $8.2trn in total cash and invested assets

Written by Adam Cadle

09/05/2023

US insurance companies reported $8.2trn in total cash and invested assets at year-end 2022, an increase of only 1.3% compared to year-end 2021, figures published by the NAIC have revealed.

The US insurance industry’s four largest asset classes remained unchanged, with bonds, common stocks, mortgages, and Schedule BA assets the largest categories, in that order.

In 2022, life insurers continued to invest in less liquid assets like mortgages, with exposure increasing 8.4% compared to 2020.

The share of bonds in the US insurance industry’s investment portfolio increased to 62.3% at year-end 2022, while the share of common stocks declined to 13.2% following significant equity market declines in 2022.

Asset-backed securities (ABS) and other structured securities and bank loans were again the two fastest growing bond types in 2022, with exposure increasing 12% and 21%, respectively, compared to the prior year.

The credit quality of the bond portfolio improved slightly at year-end 2022, with bonds designated NAIC 1 and NAIC 2 increasing to 94.7% of total bond exposure from 94% at year-end 2021.

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