Research shows that life insurers owned by private equity groups have significantly expanded their holdings in private credit, raising questions about market transparency and risk transfer within the insurance sector.
Life insurers owned by private equity groups have been steadily increasing their exposure to higher-yielding private credit, according to researchers at the Federal Reserve Bank of Chicago, in a development that has deepened the links between the insurance sector and wider financial markets.
The study found that from 2017 to 2024, these firms lifted their holdings of private placements tied to asset-backed securities and financial borrowers to 8% of assets from 2%. By contrast, insurers without private equity ownership increased those investments only modestly, to 4% from 3% over the same period.
The shift reflects a broader effort by alternative asset managers to use insurance balance sheets as a source of long-term capital. Apollo Global Management has said its asset-backed finance strategy looks across commercial property, residential mortgages, financial assets such as receivables and inventory, and infrastructure-linked hard assets, with a focus on risk-adjusted returns. KKR has also built a substantial insurance presence through Global Atlantic, which it fully acquired in 2024, and says it works with more than 150 insurers globally.
The growing appetite for private credit in insurance portfolios has drawn scrutiny because the market is less transparent than public debt. Axios reported in April that life insurers’ exposure to private credit reached $849bn in 2024, amounting to almost half of the $1.8tn sector, raising questions about how much risk is being transferred into products ultimately tied to retirement savings.
The trend is not limited to private equity-owned carriers. In a sign that insurers more broadly are seeking new sources of return, New York Life took a minority stake in Fairview Capital in 2024, while SelectQuote announced a $350m strategic investment in February 2025 from funds managed by Bain Capital, Morgan Stanley Private Credit and Newlight Partners.
For regulators and investors, the message is clear: life insurance portfolios are no longer confined to traditional bonds and mortgages. They are becoming a more important conduit for private markets capital, with potentially far-reaching consequences if credit conditions deteriorate.
- https://www.bloomberg.com/news/articles/2026-05-13/pe-owned-insurers-boosting-private-credit-holdings-study-finds – Please view link – unable to able to access data
- https://www.bloomberg.com/news/articles/2026-05-13/pe-owned-insurers-boosting-private-credit-holdings-study-finds – This Bloomberg article discusses how life insurance companies owned by private equity firms have significantly increased their investments in higher-yielding alternative credit. Between 2017 and 2024, these insurers’ investments in private placements for asset-backed securities and financial borrowers rose from 2% to 8% of assets, while standalone insurers’ investments grew from 3% to 4%. The shift has intertwined the insurance industry with the broader financial system. ([bloomberg.com](https://www.bloomberg.com/news/articles/2026-05-13/pe-owned-insurers-boosting-private-credit-holdings-study-finds?utm_source=openai))
- https://www.apollo.com/strategies/asset-management/credit/asset-backed-finance – Apollo Global Management’s Asset-Backed Finance (ABF) strategy focuses on sourcing investments across diversified channels, including proprietary platforms and partnerships. They assess a wide range of opportunities to improve risk-adjusted returns, considering structure, asset risk, and yield. Their ABF universe includes commercial real estate, residential mortgages, financial assets like inventory and receivables, and hard assets such as transportation and infrastructure. ([apollo.com](https://www.apollo.com/strategies/asset-management/credit/asset-backed-finance?utm_source=openai))
- https://www.kkr.com/invest/insurance – KKR has been collaborating with insurance companies since the 1970s, managing assets across public and private credit, infrastructure, real estate, and private equity on behalf of over 150 global insurers. Through its wholly-owned insurance subsidiary, Global Atlantic, KKR provides retirement, financial security, and investment solutions. In 2024, KKR fully acquired Global Atlantic, enhancing its investment expertise and resources for the benefit of Global Atlantic’s investment portfolio. ([kkr.com](https://www.kkr.com/invest/insurance?utm_source=openai))
- https://www.axios.com/2026/04/03/insurance-risk-private-credit – This Axios article highlights growing concerns about the risks associated with private credit investments in the life insurance industry, particularly through annuities. Life insurers have significantly increased their exposure to private credit, reaching $849 billion in 2024, nearly half of the $1.8 trillion private credit sector. The opaque nature of the private credit market complicates risk assessment, raising questions about financial stability and retiree security. ([axios.com](https://www.axios.com/2026/04/03/insurance-risk-private-credit?utm_source=openai))
- https://www.morganstanley.com/im/en-us/intermediary-manager-research/about-us/newsroom/press-release/selectquote-announces-350M-investment-from-bain-capital-morgan-stanley-private-credit-and-newlight-partners.html – In February 2025, SelectQuote, a leading distributor of Medicare insurance policies, announced a $350 million strategic investment from funds managed by Bain Capital, Morgan Stanley Private Credit, and Newlight Partners. This investment aims to support SelectQuote’s growth and expansion in the insurance sector. ([morganstanley.com](https://www.morganstanley.com/im/en-us/intermediary-manager-research/about-us/newsroom/press-release/selectquote-announces-350M-investment-from-bain-capital-morgan-stanley-private-credit-and-newlight-partners.html?utm_source=openai))
- https://www.newyorklife.com/newsroom/2024/new-york-life-acquires-minority-ownership-stake-in-fairview-capital – In April 2024, New York Life, America’s largest mutual life insurer, acquired a minority ownership stake in Fairview Capital, one of the largest minority-owned investment management firms in the U.S. Fairview Capital is a leader in venture capital and private equity investing, with over $10 billion under management since its inception 30 years ago. The partnership aims to build and sustain meaningful economic outcomes over the long term while generating positive investment returns for clients. ([newyorklife.com](https://www.newyorklife.com/newsroom/2024/new-york-life-acquires-minority-ownership-stake-in-fairview-capital?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article was published on May 13, 2026, which is within the past week, indicating high freshness. No evidence of recycled or republished content was found.
Quotes check
Score:
10
Notes:
The article does not contain any direct quotes, so this check is not applicable.
Source reliability
Score:
10
Notes:
The article is from Bloomberg, a reputable major news organisation, enhancing its reliability. No signs of derivative content or reliance on low-quality sources were found.
Plausibility check
Score:
10
Notes:
The claims about private equity-owned insurers increasing their holdings in private credit are plausible and align with industry trends. No inconsistencies or unverifiable claims were identified.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The article meets all verification standards, with no significant concerns identified in any of the checks. It is fresh, original, and from a reliable source, with claims that are plausible and verifiable.