Insurers are permitted to hold affiliated investments. The U.S. insurance regulatory framework has long recognized that insurers may engage in transactions and investment relationships with affiliated entities, provided those activities comply with applicable state insurance laws and regulatory requirements. Affiliated investments are subject to specialized accounting, disclosure, reporting, and supervisory review because they can present unique risks and potential conflicts of interest. 
 
Affiliated investments are subject to oversight through the Insurance Holding Company System Regulatory Act (#440), related state holding company laws, and statutory accounting requirements. Regulators review insurer filings, disclosures, and material affiliate transactions, and may require additional information when warranted. Insurers have long been required to disclose affiliated investments, and regulators use those disclosures as part of ongoing financial analysis and examination activities. 
 
Insurance regulators have also expanded transparency requirements in recent years. Through statutory accounting and reporting changes, regulators enhanced disclosures related not only to affiliated investments but also to a broader category of related-party investments. These additional disclosures provide regulators with greater visibility into investment structures, potential conflicts of interest, and relationships that may not involve direct control but could still influence investment decisions. 
 
State insurance investment laws generally incorporate prudential standards, diversification requirements, and/or limitations on certain types of investments. The NAIC’s Investments of Insurers Model Acts (#280 and #283) and specific state investment frameworks available here provide standards intended to protect insurer solvency and policyholders, while states implement and supervise investment requirements through their own laws and regulations.
 
Affiliated and related-party investments remain an area of regulatory focus because they can involve complex structures, valuation considerations, and concentrated exposures. Accordingly, regulators monitor these investments through financial reporting, holding company oversight, examination processes, and ongoing supervisory review. Recent regulator guidance and handbook updates have further emphasized oversight of affiliated investment relationships, governance, transparency, and potential conflicts of interest. 

There are no NAIC actions on Affiliated Investments at this time.