Advances from Federal Home Loan Banks to US insurance companies climbed 10.4% to $177.85 billion as of December 31, 2025, according to the FHLBanks Office of Finance. This figure marks a new all-time period-end high and the second straight year of double-digit growth. Insurers broadened their participation in the system amid flourishing spread investing.
US insurance companies deepened their engagement with the Federal Home Loan Bank system in 2025, pushing advances to a record $177.85 billion by year-end. Data from the FHLBanks Office of Finance shows a 10.4% increase from the prior year, the third instance of double-digit growth in four years. This surge reflects insurers' strategy to leverage the system for funding amid favorable market conditions for spread investing. The US life insurance sector saw particularly strong expansion, with deposit-type contract balances before reinsurance rising 18.3% net of surrenders and withdrawals. That pace represents the largest growth in at least 24 years, signaling robust demand for these products. Insurers retain significant borrowing capacity, especially in the property and casualty segment. This positions them to potentially increase FHLB advances further if opportunities arise. The trend underscores insurers' growing reliance on the system for liquidity and investment.