2022 BOLI State of the Union

How will BOLI react in a rising interest rate environment? At the start of 2021, banks faced several challenging economic conditions including declining net interest margins, lower asset yields, and excess liquidity. The unique attributes of Bank-Owned Life Insurance (BOLI) helped banks mitigate these issues leading to an estimated $10.8 billion of BOLI purchased in 2021, representing approximately a 175% increase over estimated new and additional purchases in 2020. While the economic circumstances that drove BOLI sales in 2021 currently remain intact, will BOLI continue to be an attractive investment with interest rates expected to rise? Read more >>