Traditional Insurers Help FHLB's Mitigate Loss of Captive Members
by Tim Zawacki of SNL Financial
Intriguing perspective on insurer participation at FHLBs.
Insurance company participation in the federal home loan bank system increased during 2016 even as a subset of the sector learned they would no longer be eligible for membership as soon as February 2017.
A total of 393 insurance companies had membership in a federal home loan bank at year-end 2016, accounting for advances with aggregate par value of $101.74 billion, according to data released March 28 by the FHLBanks Office of Finance. The banks counted 372 insurance company members with aggregate advances of $98.41 billion as of Dec. 31, 2015.