Financing programs from the Federal Home Loan Bank (FHLB) system have been leveraged by many larger U.S. insurance companies and Conning thinks they could be helpful tools for small and medium-sized insurers as well.
Insurance company membership in the FHLB system has grown since the start of 2020, no surprise given the market dislocation that struck in mid-March. FHLB advances to insurers are also on the rise. As FHLB is a new resource to many, Conning has assembled a Q&A that offers insight on the membership process and programs based on discussions we’ve had with clients.
“FHLB: Membership, Collateral and Innovative Uses of a Financing Resource for Insurers,” covers ideas on best practices for types of collateral to use when joining a regional FHLB and securing an advance, and shares views on innovative uses for FHLB financing including pension funding and asset-liability management.