US insurers turn to short-dated FX forwards as notionals rise

















































US insurers turn to short-dated FX forwards as notionals rise – FX Markets



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Counterparty Radar: Trades under three months make up nearly 60% of total positions, up from just a third in 2022


Calendar and hourglass

US insurers ramped up their use of short-dated FX forwards to manage currency risk in the third quarter, accelerating a shift away from longer-dated trades that began back in 2022.

Aggregate forwards notionals on the books of carriers at the end of Q3 hit a record $66.8 billion, up from $58 billion the previous quarter and $62 billion in Q3 2024. The data is taken from industry filings made by US insurers that are extracted, cleaned and compiled by Risk.net’s Counterparty Radar service.

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