Link: https://content.naic.org/sites/default/files/capital-markets-special-reports-Sch-BA-YE2021.pdf
Graphic:
Excerpt:
The U.S. insurance industry’s reported BACV of $522.8 billion in other long-term invested assets on
Schedule BA represented an increase of 14.8% at year-end 2021 compared to year-end 2020 (see Table
1 and Table 2). Schedule BA assets have experienced strong double-digit growth in recent years, with
2021’s 15% increase in exposure following YOY growth of 13% and 10% in 2020 and 2019, respectively.
Total Schedule BA exposure as of year-end 2021 represented 6.5% of the industry’s total cash and
invested assets, an increase from 6.1% as of year-end 2020 and 5% as of year-end 2012.Like previous years, hedge fund, private equity, and real estate investments represented most of the
industry’s Schedule BA exposure. Together, they accounted for 75% of total exposure at year-end 2021
compared to 70% at year-end 2020. Exposure to private equity investments experienced significant
growth, increasing by 34% YOY to $173 billion as of year-end 2021. Private equity’s share of total
Schedule BA exposure rose to 33% from 28% at year-end 2020, surpassing hedge fund investments to
become the largest component of the industry’s exposure.
Author(s): Michele Wong and Jean-Baptiste Carelus
Publication Date: 3 June 2022
Publication Site: NAIC Capital Markets Special Report