US life insurers boost private credit allocation to one third of sector’s $6trn in assets

Written by Adam Cadle

17/06/2025

US life insurers increased their allocation to private credit to about one third of the sector’s $6trn in assets, latest figures published by Moody’s have revealed.

The European insurance industry held around €500bn in private credit, representing around 13% of total investment portfolios, by the end of 2024.

“As the share of private credit investments grows, it will contribute to more diversified, higher-yielding, and better liability-matched investment portfolios,” Moody’s stated.

“However, growth in private credit also reduces transparency, lowers liquidity, and makes valuations more complex.”

Nonetheless, almost 80% of survey respondents to Moody's investment survey said they plan to increase their holdings of at least one class of private credit over the long term, with growth appetite being strongest in higher spread asset-based finance and private placement.

“We expect insurers with comparatively low exposure, including some large European groups, to increase their allocations the most,” said Will Keen-Tomlinson, the author of the Moody’s European report.

“For most insurers the benefits of investing in private credit assets will outweigh the risks.”

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