Life Companies’ CRE Mortgage Returns Improve in Q3 2025

Life insurance companies’ commercial mortgage holdings improved in the third quarter of 2025, according to the latest Trepp LifeComps index. Insurers participating in the index reported a total quarterly return of 2.29% in Q3, exceeding the National Council of Real Estate Investment Fiduciaries’ Open‑End Diversified Core Equity index by 156 basis points.

The LifeComps total return index, comprised of 1.23% income return and 1.07% appreciation return, improved 39 bps from Q2 2025, driven largely by the increase in appreciation returns. Although the income return posted a modest two-bp increase, it is well above the long-term average of 1.09%.

The index posted its second consecutive quarter of increases in net funding, rising to $5.84 billion. Conversely, transaction count was down on a quarterly basis and by comparison to Q4 2024. The Q3 loan count was 7,211, compared to 7,248 in Q2 and 7,370 in Q4 of last year.

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