US insurers reported about $95bn BACV of bank loan investments at year-end 2025, a significant decrease from $123bn at year-end 2024, according to figures published by the National Association of Insurance Commissioners (NAIC).
Unaffiliated bank loans comprised almost all of the exposure; about 85% were acquired, with the remaining 15% issued by the insurer.
As in previous years, life insurers accounted for the majority of bank loan exposure, representing 77% of the total at year-end 2025, down from 85% the previous year.
Credit quality declined year-over-year (YOY), as bank loans with NAIC 1 and NAIC 2 designations accounted for 30% of the total at year-end 2025, down from about half in 2024, while those with NAIC 3 and NAIC 4 designations—indicating below investment-grade credit quality—increased to 58% from 42% at year-end 2024.
Bank loan investments decreased slightly to around 1% of US insurers’ total cash and invested assets, down from about 1.4% of total assets in 2022 through 2024.
