The FHLB Assist: Helping Insurers Enhance Profitability, Balance-Sheet Strength, and Financial Stability
The FHLB Assist:
Helping Insurers Enhance Profitability, Balance-Sheet Strength, and Financial Stability
In today’s high-rate, low-liquidity environment, insurers are increasingly turning to the Federal Home Loan Bank (FHLB) system as a strategic tool for financial resilience. In Conning’s newest Viewpoint “The FHLB Assist: Helping Insurers Enhance Profitability, Balance-Sheet Strength, and Financial Stability,” John Rup, Director of Insurance Solutions, explores how this nearly century-old institution is evolving to meet the liquidity and investment needs of its members. With borrowing programs that offer competitive rates and flexible structures, FHLB membership is proving to be a valuable asset for insurers.
This viewpoint highlights a surge in FHLB participation among insurers, with membership and borrowing activity reaching new highs in 2024, outlining how FHLB advances can serve as a reliable liquidity backstop and support asset-liability management. Conning also details the operational steps and capital considerations involved in accessing FHLB funding—critical insights for insurers evaluating this option.
Beyond liquidity, the FHLB system offers insurers a platform for strategic growth. Whether funding working capital or optimizing investment portfolios, FHLB advances can unlock new opportunities. With Conning’s deep experience in insurance asset management and FHLB program design, insurers can confidently assess the benefits and risks of participation.
This viewpoint highlights a surge in FHLB participation among insurers, with membership and borrowing activity reaching new highs in 2024, outlining how FHLB advances can serve as a reliable liquidity backstop and support asset-liability management. Conning also details the operational steps and capital considerations involved in accessing FHLB funding—critical insights for insurers evaluating this option.
Beyond liquidity, the FHLB system offers insurers a platform for strategic growth. Whether funding working capital or optimizing investment portfolios, FHLB advances can unlock new opportunities. With Conning’s deep experience in insurance asset management and FHLB program design, insurers can confidently assess the benefits and risks of participation.
Riding the Growth Wave Into 2025
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