NAIC Working Group Adopts 0.68% “Look-Through” RBC Factor for Funds Investing in Resi Mortgages

On April 30, 2026, the NAIC Life Risk-Based Capital (E) Working Group (“Life RBC WG”) voted to reduce the C‑1 risk-based capital (“RBC”) factor from 1.75% to 0.68% when life insurers invest in performing residential mortgage loans indirectly through an unaffiliated joint venture (“JV”), partnership, or limited liability company (“LLC”). To provide context, a 0.68% RBC factor is considered quite favorable—comparable to the 0.657% RBC factor for holding an A1/A+ rated bond.... By: Mayer Brown