US insurers report 2.5% increase in investment management outsourcing

Written by Adam Cadle

22/04/2025

The number of US insurers that outsourced investment management capabilities at year-end 2024 increased by 2.5% from year-end 2023, according to the NAIC.

Insurers outsourcing as a percentage of all US insurers that filed annual statements with the NAIC increased to 53% from 51% at year-end 2023.

The rise coincides with US insurers’ increased exposure to nontraditional, higher-yielding alternative investments that require specific expertise and infrastructure.

P&C companies accounted for almost 60% of US insurers that outsourced to unaffiliated investment managers for both year-ends 2024 and 2023.

Small insurers (those with less than $250m in AuM) accounted for two-thirds of the total number of US insurers that outsourced investment management at year-end 2024.

Similar to the prior year, nearly 90% of US insurers that outsourced investment management had more than 10% of their assets managed by a single investment manager at year-end 2024.

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