US life insurers’ Schedule BA investments hit new high amid alternatives push

Written by Adam Cadle

02/10/2025

US life insurers’ Schedule BA investments have hit a new high amid a greater focus on alternative assets, according to S&P Global Market Intelligence.

As of 30 June, life industry Schedule BA investments have increased to more than $385bn, representing 6.8% of net admitted cash and invested assets, from around $373bn, or 6.7%, as of 31 March.

Schedule BA allocations included holdings of instruments such as privately placed corporate bonds, bank loans, collateralised fund obligations, rated note feeder fund structure and residential mortgage whole loans.

In the P&C sector, Schedule BA allocations have incrementally fallen since peaking in Q1 2017 at more than 9.1% of net admitted cash and invested assets. However, this largely reflects various activities affecting the P&C subsidiaries of Berkshire Hathaway Inc., which at one point accounted more than 45% of the sector's Schedule BA investments but more recently has maintained a share of less than 16% as it shifted equity interests in BNSF Railway to a non-insurance intermediate holding company.

For the rest of the P&C industry, Schedule BA allocations peaked at 7.2% of net cash and invested assets as of 31 March then slipped to 7.1% as of 30 June even as the absolute amount of investment rose.

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