Insurance ETF Holdings Grow to $49 Billion

Insurers are increasingly using ETFs to balance risk and match assets with long-term liabilities.

Updated on Oct. 26, 2026 in Investing

Isometric editorial illustration of arranged geometric blocks in muted tones, representing institutional investment strategy and asset management. — U.S. insurers increased their exchange-traded fund holdings to $49 billion by the end of 2025, marking a 25% growth in portfolio adoption. AI Illustration. Upload story photo >

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U.S. insurance general accounts reached $49 billion in exchange-traded fund (ETF) holdings by the end of 2025. This move reflects a 25% growth from 2024, as more insurance providers adopt these vehicles for their investment portfolios.

Why it matters

Insurers are increasingly using ETFs to diversify their equity exposure, manage concentration risk, and gain access to niche markets. These tools allow firms to better align their assets with future liabilities while maintaining flexibility.

U.S. insurers held $49 billion in ETFs in 2025, a 25% increase from 2024. Roughly 37% of U.S.-based insurers now utilize these funds in their portfolios, with the number of unique ETFs held by the industry growing from 500 in 2020 to 768 in 2025.

The details

Insurers utilize ETFs for tactical purposes like cash equitization and portfolio transitions to manage liquidity efficiently. By selecting fixed-income ETFs with specific maturity dates, firms can match the duration of their assets directly to their expected financial liabilities. While small and medium-sized insurers have been more active, allocating 1% to 2% of their portfolios to ETFs, large and mega-sized entities maintain allocations of less than 1%.

2020: Insurers held 500 ETFs in their portfolios.
2024: This year serves as the baseline for the 25% increase in assets.
2025: Insurance general accounts reached $49 billion in ETF assets.

Money Landscape

The rise in ETF usage represents a strategic pivot for insurance general accounts, which manage approximately $8 trillion in total assets. This shift follows a documented industry move toward using specialized investment products to fine-tune risk profiles.

While these shifts occur at the institutional level, they influence the stability and strategy of products like whole life insurance or annuities you may hold. Consult a qualified financial professional to understand how your provider's specific investment philosophy impacts your personal policy.

The takeaway

Insurers are increasingly turning to ETFs to balance their portfolios and manage long-term obligations more precisely. Monitor your annual insurance disclosures for any changes in the underlying investment strategies of your own long-term financial products.