Securitized Products Alert: 2026Q1 Insurance Investment Activity

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Securitized Products Alert: 2026Q1 Insurance Investment Activity

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Securitized Products Alert

2026Q1 Insurance Investment Activity

Insurance Pays a Premium for Bonds 08 June 2026 Corrected

As of year-end 2025, the insurance sector held approximately $9.6 trillion in invested Securitized Products Strategy

assets and cash, representing ~6.7% YoY growth. Bonds currently account for 60% of United States

the cohort at $5.7 trillion. Structured product investments and investment in data Pratik K. Gupta

centers account for around $1.6 trillion and has been growing in share each year. The CLO/MBS Strategist

vast majority of insurance investments in both public & private placements has been IG BofAS+1 646 855 9146

rated (92% IG rated in privates and 98% IG in public). pratik.gupta@bofa.com

Chris Flanagan

We also review PE owned insurance vs non-PE purchase trends, fund finance FI/MBS/CLO Strategist

transactions, and optimization trades, as well as regulatory changes for residential BofAS+1 646 855 6119

mortgages and potential changes for CLOs. christopher.flanagan@bofa.com

Jeana Curro

Q1 2026 Insurance Purchases by Sector MBSBofASStrategist

Agency MBS purchase by insurance totaled $18.7bn in Q1, which is $9.2bn less than +1 646 855 9135

jeana.curro@bofa.com

2025Q4 and $4.9bn lower than 2025 quarterly average of $23.6bn. Lifers continued to

Theresa O'Neill

allocate heavily to extra‑long‑duration products such as CMO Z‑bonds, while P&C ABS Strategist

companies maintained a broader and more front‑loaded duration profile insurance BofAS

+1 646 855 9285

companies continued to favor conventional passthroughs, while showing while theresa.oneill@bofa.com

maintaining a more balanced allocation between Ginnie Mae and conventional CMOs. Alan Todd, CFA

CMBS Strategist