Non-US insurers on 'Sell America' trend with trade policy accelerating the shift

Written by Adam Cadle

06/08/2025

Non-US insurers are divesting from the US with trade policy accelerating the shift, new analysis from Clearwater Analytics has revealed.

Data from 50 non-US insurers with more than $100bn in combined assts has shown a clear trend of ‘Sell America’ in the year through to June with the insurers pivoting to continental European assets. The book value of their US assets has dropped 4.5% since the end of last year while the total book value of all assets has increased by 1.5%. Meanwhile, analysis of transactions data shows net purchases of US assets have dropped to their lowest level in at least 18 months.

Daily net purchases of US assets surged in the immediate aftermath of the US election but are now down 56% (90-day moving average) since November, with the most precipitous decline following tariff action in February.

However, the trend isn’t universal across asset classes or market observers. Some major firms including Blackstone have recently predicted a “restoration of confidence” in US assets and expect a recovery in capital markets while US Treasury Department data shows foreigners invested a record net $311.1bn in US securities in May.

Clearwater data has shown that US assets still comprise over half of the insurers’ combined holdings. For those firms with at least 1% in direct US exposure, however, average exposure has declined from 56% at the start of the year to 51% in June.

Not all US asset classes have seen divestment, the analysis found, with the book value of US structured products holdings having increased 9% through June since the end of 2024.

The book value of assets by geography for the sample of insurers shows increases of 8% in continental Europe and 5% in the ‘rest of the world’ compared to a 1.5% decrease in US assets since December.

“Non-US insurers on Clearwater’s platform have reduced their exposure to US assets, and, after a post-Election Day bump in November, net purchases have fallen to their lowest level in at least 18 months. Divestment appears to have accelerated amid trade policy action and rhetoric,” Matthew Vegari, head of research at Clearwater Analytics commented.

“At the aggregate level, there is evidence of a year-to-date decline in US exposure. The weaker US dollar and stronger euro play a role but that is secondary to the decline in US holdings.

“While this research should not be extrapolated to wider market flows given its narrow scope, it is concrete evidence that at least some foreign investors have divested from the US in a short timespan.”

The analysis was from non-US insurers based in the UK, Norway, Netherlands, Ireland, France, Germany, Belgium and the rest of the world.

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