US life insurers held about $85.2bn in AI ecosystem investments as of Q2 2026, up by 24% from $69bn at year-end 2025, Moody’s Ratings has revealed.
The latest figure equates to 1.4% of cash and invested assets.
As a share of the industry’s total fixed income holdings, these latest investments rose to just 2.1% from 1.7% at year-end 2025.
Moody’s Ratings also said assuming $1trn of global digital infrastructure spending in 2027, it has estimated that US life insurers could reasonably increase their AI ecosystem holdings by $50bn to $100bn by year-end 2027.
Digital infrastructure holdings rose 34% to around 39.5bn at Q2 2026. Most are investment grade, though the below-investment-grade share rose to 6.1% from 4.7%.
Moody’s Ratings said looking ahead, some of the key risks to monitor include credit quality of the hyperscalers, the growing resistance to data centres, and circularity of risk in the AI ecosystem.
“Life insurers will need to identify, monitor and manage their investments’ counterparty exposures,” it said.
