News for Insurance Companies

Welcome to our spring 2026 newsletter exclusively for insurance companies that are FHLBank Boston members.

FHLBank Boston’s Newest Insurance Members

Insurance company membership is growing at FHLBank Boston. Seven insurance companies have joined FHLBank Boston since January 2025.

Date	Company
April 10, 2026	Ceres Life Insurance Company (CT)
October 23, 2025	Greenwich Insurance Company (CT)
August 1, 2025	Partner Reinsurance Company of the US (CT)
June 2, 2025	Ophthalmic Mutual Insurance Company (VT)
April 17, 2025	Tufts Health Public Plans (MA)
April 17, 2025	Tufts Associated Health Maintenance Organization (MA)
February 10, 2025	Knighthead American Life Insurance (CT)

All-In Advances Rates Lower Than Treasurys

Below is a comparison of FHLBank Boston advance rates and Treasury rates across common tenors. For example, on May 19, 2026, the two-year Classic Advance rate was 4.22% while the same-term Treasury note was 4.137%. But when you incorporate the benefit of holding FHLBank Boston activity stock, the all-in rate on the advance improves by 0.22%, pushing it below the Treasury rate.

Classic Advance Rates vs. Treasury Rates

Tenor	Classic Advance	Classic Advance Net Rate Considering Benefit of Dividend	U.S. Treasury Yield
6-month	3.88%	3.67%	3.739%
1-year	4.01%	3.80%	3.839%
2-year	4.22%	4.01%	4.137%
3-year	4.32%	4.11%	4.223%
5-year	4.46%	4.25%	4.35%

Take Advantage of Early Borrowing

Reminder: If you are able to borrow before noon, you can receive even better pricing than our regular competitive rates. Rates for advances booked before noon are 3 basis points lower than the rates for advances taken in the afternoon.

Collateral Pledged by Insurance Companies

FHLBank Boston accepts various types of collateral. Below is a breakdown of the collateral types pledged by FHLBank Boston member insurance companies. If you have questions about what types of collateral can be pledged, see the “Eligible Collateral” section of the Product and Solutions Guide or contact your relationship manager.

Collateral Pledged by FHLBank Boston Insurance Members as of 04/10/26

Type	Value*	Percent
5+ family loans	$1,637	12.86%
CRE	$3,915	30.77%
Agency Securities	$4,210	33.08%
Treasurys	$797	6.26%
CMBS, Non-Agency, & Munis	$2,153	16.92%
Cash Deposits	$14	0.11%

Top Insurance Company Borrowers in the FHLBank System

Insurance Borrowers by Rank

Rank	Company	In Millions
1	Athene Annuity and Life Insurance	$23,271
2	Metropolitan Life Insurance	$12,835
3	Teachers Insurance and Annuity Assoc. of America	$7,229
4	Equitable Financial Life Insurance	$6,865
5	New York Life Insurance	$4,588
6	American General Life Insurance	$4,422
7	EquiTrust Life Insurance	$4,250
8	Brighthouse Life Insurance	$4,200
9	Reliance Standard Life Insurance	$4,000
10	Symetra Life Insurance	$3,985

Fixed versus Floating-Rate Advance Products

Below is information that can help determine whether to use a fixed-rate or floating-rate advance. Floating-rate advances generally fit short-reset assets and situations where the insurer wants flexibility while tolerating carry volatility. Fixed-rate advances generally fit longer-duration fixed-rate assets and situations where the insurer wants to stabilize the financing leg and protect expected spread over a defined horizon.

Fixed-rate advance: The borrowing rate is locked for the term (one day to 30 years). The duration and average life of the liability are longer; interest expense is predictable over the term. Rates can be found here. Please note you may need to log in.

Floating-rate advance: The borrowing rate resets periodically (daily, monthly, or quarterly) based on a short-term index (see the links below) plus a spread (spread indications can be requested from the Bank). The duration of the liability is short, while the average life is longer, and interest expense moves as the reference index moves.

FHLBank Boston offers several floating-rate advance products, including the Discount Note Auction-Floater Advance and the SOFR-Indexed Advance.

1. Discount Note Auction -Floater Advance: Resets every 28 or 91 days. May be prepaid or paid in full at each reset date without penalty. Index (MMY column) – FHLBanks Office of Finance.
2. SOFR-Indexed Advance: Interest is paid annually or at maturity if the term is shorter. Index – Secured Overnight Financing Rate Data – Federal Reserve Bank of New York

General Rule of Thumb:

	Advance Product Type
Need is temporary (days to months), and the expected repayment source is near-term cash flow or liquid assets	Floating-rate or short-term fixed
Financing long-duration fixed-rate assets and want to reduce funding-duration mismatch over the intended hold period	Fixed-rate
Financing floating-rate or short-reset assets and want funding costs to move with the asset yield	Floating-rate
The financed assets have uncertain duration/optionality (e.g., MBS prepayment/extension, callable structured features), and you value flexibility to adjust financing as asset duration shifts	Floating-rate or short-term fixed
Financing strategic buy-and-maintain assets and targeting a stable net spread over a multi-year horizon	Fixed-rate
Concern is short-rate increases hurting earnings/cash flow (fixed-rate assets, limited ability to reprice liabilities quickly)	Fixed-rate
Advance is expected to be outstanding for years, or you want to reduce refinancing risk in stress scenarios	Fixed-rate
Need budget certainty for interest expense and stable spread targets	Fixed-rate
Expect rates to decline soon, and you can tolerate repricing risk if you’re wrong	Floating-rate

Funding Solutions Based on Investment Type:

IG corporates:

• Typically, fixed-rate and medium-to-long duration with spread risk
• If the objective is stable, buy-and-maintain spread over a defined horizon, fixed-rate advances often align best (reduce funding-duration mismatch and protect carry if short rates rise)
• If the position is intended to be shorter-term or opportunistic (spread-tightening trade), floating can be appropriate but introduces carry compression risk if short rates rise

Municipals:

• Often held as long-duration, relatively stable cash-flow assets in insurance portfolios
• If municipals are financed as a strategic sleeve, fixed-rate advances are commonly more consistent with long-holding periods and spread-stability goals
• Floating may be used for interim funding (e.g., staged purchases), but should be evaluated for earnings volatility as short rates rise

MBS (agency and non-agency):

• Cash flows are path-dependent due to prepayment/extension risk (negative convexity in many scenarios)
• This creates mismatch risk if financing is locked while asset duration shifts
• Many insurers either use floating-rate advances for flexibility when effective duration is uncertain, or fixed-rate advances only when the effective duration profile is well understood, and the financing tenor is set conservatively (with contingency plans if the MBS extends)

Structured products (e.g., ABS/ CMBS/ CLO tranches):

• Behavior depends heavily on structure (floating vs fixed coupons, call features, credit migration)
• Match coupon type where possible: floating-coupon structures often pair naturally with floating-rate advances, while fixed-coupon structures often pair better with fixed-rate advances
• For structures with embedded options or uncertain weighted average life, prioritize flexibility (often floating or shorter tenors) unless the hold period and cash flows are well bounded

Common Questions About FHLBank Boston Capital Stock

See our website for more details about FHLBank Boston’s Capital Stock Requirements.

Where does FHLBank Boston Capital Stock get reported on the statutory reports?

FHLBank Boston capital stock is reported under Schedule D, Part 2, Section 2 – All common stocks.

Are all types of Capital Stock (membership, activity, and excess) eligible to receive a dividend?

Yes. All Capital Stock is used to calculate your dividend.

What is the par value of each share of stock?

All outstanding shares of Capital Stock are Class B with a par value of $100. All stock is issued, redeemed, repurchased and transferred only at par value.

What CUSIP is used to report the FHLBank Boston stock?

The stock does not trade and has no assigned CUSIP. Companies have added their own CUSIP, such as 31340#-10-0.

How is the membership stock determined?

Members will purchase membership stock equal to .05% of admitted assets (excluding separate accounts) as of the December 31 statutory filing. Every year, the amount can increase or decrease and will be adjusted around April 1. The maximum amount is $5 million, and the minimum is $10,000. If your stock requirement increases, you will purchase additional stock after any excess stock is first used.

When will I purchase activity stock when I take an advance?

The activity stock is either 3% of the total overnight advance, or 4% for any tenor longer than overnight. If you hold excess stock, that will first be used toward any activity stock. If that is not sufficient, the additional stock amount will be debited from your IDEAL Way account on the day of the advance cash settlement. As such, you will want to make sure you have sufficient funds in your IDEAL Way account to cover the stock purchase. You will be able to borrow more than the desired amount (use a factor of .0417 since you will have stock on the extra amount), wire out the net amount after you consider the stock requirement, e.g., $96 million on a $100 million advance, or wire in additional funds into your IDEAL Way account independent of the borrowing.

How do I request excess stock to be repurchased?

Requests submitted by 2:00 p.m. on a business day will generally be processed the same day, while requests received after 2:00 p.m. may be processed the following business day. Proceeds from the repurchase will be credited to the member’s IDEAL Way account.