03.05.26

Life Insurers Hold More Private Credit Than Ever

by: Heather Gillers

Life and annuity insurers held about $1.8 trillion in private credit in 2025, accounting for about 46% of their total debt portfolios, according to A.M. Best, reflecting a major shift toward higher-yield investments that help support annuity payouts. The growing reliance on private credit has raised concerns about liquidity because these loans, often made to middle-market companies, can be difficult to sell quickly during market stress. Investor worries about risky lending have already triggered more than $1 billion in withdrawals from a major private credit fund this year, while shares of large lenders such as Apollo, Blackstone, Ares and KKR have fallen sharply. Moody’s also warned that the shift toward less-liquid private credit assets increases liquidity risk for certain life-insurance products.

Read the full article on The Wall Street Journal