Life Insurers Invest in Minnesota and America

Jun 29, 2021

For more than 175 years, life insurers have helped American families build and protect their financial future.

To keep long-term promises to 90 million American families, life insurance companies invest in stable, long-duration assets. These investments support initiatives by private industry and governments from coast-to-coast.

Life insurance companies turn the premiums they receive from policyholders into investments that help families get their first homes, finance education, fund infrastructure and much more.

In all, life insurers invest $640 million daily across America.

Life insurance company investments in the Minnesota Housing Finance Agency are one example. The agency offers loans with subsidized interest rates and mortgage insurance for low-to-moderate income homebuyers. The money used to make these offers comes in part from the bonds companies purchase from the agency.

Life insurance companies have invested $310 million in these bonds. Another $77 million in industry investments has boosted affordable housing in St. Paul, Fridley, Mora and more cities in Minnesota.

Educational institutions throughout Minnesota receive financing from life insurance companies, as well. The Plymouth Intermediate School District, the Hastings Independent School District and the Richfield Independent School District represent only a handful of the state’s school districts receiving funding from life insurance companies. In all, life insurers have purchased $263 million in bonds issued by Minnesota-based educational institutions.

Other ways life insurers have invested in Minnesota include:

  • $2.5 billion in mortgages for apartment/multifamily units.
  • $1.5 billion in mortgages for office space.
  • $1 billion in retail mortgages.
  • $900 million in industrial loans.
  • $505 million in agricultural loans.
  • $500 million in infrastructure loans.

Life insurers also invest in stocks and bonds issued by private businesses in the state. Combined with investments in government agencies, industry investments in the North Star State total $106 billion. Some 60,000 jobs in Minnesota are generated both by direct industry employment and investments.

Put another way, life insurance companies put people to work. And their investments help build and improve communities throughout Minnesota and the United States.

Chris Hilger

Chris Hilger is President, Chairman and CEO of Securian Financial in St. Paul, Minnesota.