US insurers’ securities lending activity decreases

Written by Adam Cadle

04/02/2025

US insurers reported exposure to securities associated with securities lent totalled almost $48bn in book/adjusted carrying value (BACV) at year-end 2023, pursuant to disclosures held under securities lending agreements, and represented a 7% decrease from about $52bn at year-end 2022.

According to the NAIC, securities lending collateral held by US insurers totalled $51.1bn in BACV, representing a decrease of around 5% from year-end 2022.

At year-end 2023, about 80% of US insurers’ exposure to securities lending reinvested collateral was with life companies, similar to the prior year, and almost 90% was with large insurers or those with more than $10bn in AuM.

About 60% of the reinvested collateral was in liquid assets, or specifically, short-term investments and cash and cash equivalents, which was also similar to the prior year.

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