U.S. Insurer ETF Holdings Reach $49 Billion in 2025

Insurance companies increased their ETF investments by 25% last year as adoption across the industry continued to grow.

Updated on Oct. 26, 2026 in Investing

Isometric editorial illustration of brass and steel weights balanced on a tiered platform, representing institutional ETF investment growth. — U.S. insurance general accounts increased ETF holdings to $49 billion by the end of 2025, driven by diversification and liability management needs. AI Illustration. Upload story photo >

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By the end of 2025, U.S. insurance general accounts held $49 billion in ETF assets, marking a 25% increase from the previous year. Approximately 37% of insurers now integrate these funds into their broader investment portfolios.

Why it matters

Insurers are increasingly utilizing ETFs to diversify equity exposure, manage concentration risk, and gain access to niche market segments. These tools also allow firms to match portfolio duration to expected liabilities using fixed-income options with specific maturity dates.

Insurers held 768 distinct ETFs in 2025, up from 500 in 2020. While small and medium-sized insurers allocate 1% to 2% of their portfolios to these assets, large and mega-sized firms maintain allocations of less than 1%.

The details

Firms employ these investment vehicles for diverse strategies, including cash equitization, portfolio transitions, and tactical adjustments. Small and medium-sized insurers currently account for 20% of the total ETF assets held by insurance general accounts.

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

Market Dynamics

This story follows a pattern set by the historical trend of institutional asset allocation shift toward passive investment vehicles. The integration of ETFs into general accounts represents a structural evolution in how conservative insurance capital navigates modern market liquidity.

The increased usage of ETFs by insurance companies suggests these products are becoming a standard component of institutional portfolio management. For retail investors, this trend highlights the growing importance and reliability of ETFs as fundamental building blocks in professional finance.

The takeaway

Insurance companies are signaling higher confidence in ETFs as flexible tools for managing complex liability and liquidity needs. Investors can view this shift as a validation of the role ETFs play in institutional-grade risk management and strategic asset allocation.