Insurance companies are finding value in the Federal Home Loan Bank (FHLBank) System, with membership – and the use of advances – increasing steadily over the last decade.
Insurance company membership in the FHLBank System has grown at an annual compound rate of 8.6% over the last 10 years. In 2010, 230 insurance companies were members of the FHLBanks, with $45 billion in outstanding advances at the end of the fourth quarter. Today, insurance companies represent approximately 8% of total FHLBank members, with 531 insurance members recorded in mid-2021 and $116 billion in outstanding advances. The use of advances by insurance company members represents over 31% of total FHLBank advances of $370 billion.
The FHLBanks provide insurance companies with a reliable source of competitively priced funding that insurers can use for daily and contingent liquidity, spread investing, and support for asset liability management, as well as to address longer-term needs to support growth, business objectives, and acquisitions. Learn more about insurance sector participation in the FHLBanks.
