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Macro Economy•24 April 2026•

1 min read

US Insurers' FHLB Borrowing Hits Record $177.85 Billion Amid Spread Investing Surge

Key Facts

1US insurance company advances from FHLBanks increased by 10.4% to $177.85 billion as of Dec. 31, 2025.

2The US life industry's deposit-type contract balance expanded by 18.3% in 2025, the largest rate of expansion in at least 24 years.

US insurance company advances from Federal Home Loan Banks (FHLB) reached record levels by the end of 2025, increasing 10.4% to hit $177.85 billion. This trend reflects a growing reliance on these loans to fund spread investing strategies amid robust sector growth. Notably, the US life insurance industry saw its deposit-type contract balances expand by 18.3% during the same period, marking the fastest growth rate in at least 24 years. Analysts suggest that insurers are leveraging these FHLB advances to maximize investment returns and manage liquidity more effectively. These figures underscore a structural shift in funding mechanisms within the US insurance industry, highlighting the pivotal role of FHLBanks in providing essential liquidity for expansion.