US life insurers held about $85.2 billion of investments linked to artificial intelligence at the end of the second quarter of 2026, Moody's Ratings said in a report covered by Reinsurance News on 23 October. That is about 1.4% of their cash and invested assets, and 24% more than the $69 billion they held at the end of 2025. As a share of fixed-income holdings, AI exposure rose to 2.1% from 1.7%.
Moody's sorts the exposure into three groups. Debt issued by Alphabet, Amazon, Meta Platforms, Microsoft and Oracle came to about $32.2 billion, up 21%, with Oracle at about $10 billion and Amazon at about $8.5 billion. Digital infrastructure debt grew fastest, by 34% to about $39.5 billion, and the share of it rated below investment grade rose to 6.1% from 4.7%. The third group is semiconductor-linked investments.
The rating agency projects that the holdings could grow by a further $50 billion to $100 billion by the end of 2027, if global digital infrastructure spending reaches $1 trillion that year.
Moody's warned that some exposure is hard to see, because it sits in special purpose vehicles, joint ventures, funds, commercial mortgage loans and CLOs, or in guarantees and leases. For this reason its figures probably understate the total. It also pointed to circular financing between AI companies, concentration in investment-grade corporate debt, and limits from electricity supply, permits and local opposition to data centres. Moody's still describes AI as a modest share of insurers' assets, but says the fast growth needs monitoring.
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Reinsurance News ↗News publisher · 23 Oct 2026
This is an original brief based on the linked publication. Company statements and forecasts are attributed to their source.
