NU Online News Service, Feb. 4, 4:05 p.m. – More small and midsize insurance companies are borrowing money from the Federal Home Loan Bank system, according to a report from the Chicago office of Fitch.

Insurance companies can borrow from the system without filing registration statements with the U.S. Securities and Exchange Commission, Fitch says.

“Fitch believes that insurance companies that are members of FHLBank and plan little or no borrowing have improved their financial flexibility and liquidity,” the company says. “Conversely, insurers that borrow excessively relative to their capital base or use proceeds in a risky manner will likely have negative rating implications.”