Life Insurance Companies’ CRE Mortgage Returns Improve in Q3
Life insurance companies saw improved performance in their commercial mortgage holdings during the third quarter of 2025, according to the latest Trepp LifeComps index. Participating insurers reported a total quarterly return of 2.29% for Q3, outperforming the National Council of Real Estate Investment Fiduciaries’ Open-End Diversified Core Equity index by 156 basis points.
The LifeComps total return index was composed of a 1.23% income return and a 1.07% appreciation return, marking a 39 basis point improvement from the second quarter of 2025. The gain was primarily driven by increased appreciation returns. Income return saw a modest increase of 2 basis points, remaining above its long-term average of 1.09%.
Net funding posted its second consecutive quarterly increase, rising to $5.84 billion in Q3. However, the transaction count declined both quarter-over-quarter and year-over-year. A total of 7,211 loans were recorded in Q3, compared to 7,248 in Q2 and 7,370 in Q4 2024.
