Chelsea FC owner’s insurance company held biggest exposure to US illiquids in 2022

Written by Adam Cadle

13/10/2023

Security Benefit, the US insurance company set up by Chelsea FC owner Todd Boehly in 2015, held the largest exposure to US illiquid assets of any insurer in the country last year, data published by Fitch Ratings has shown.

Security Benefit had 59% of its assets in illiquids in 2022, double the amount held by the second-biggest illiquids owner Athene.

Alternative asset manager-owned insurers like Security Benefit dominated holdings of illiquid assets in the US. Fitch said these insurers had on average 19% of their portfolios in illiquids.

Alt AM-owned insurers also saw more rapid asset growth last year than those of Fitch’s broader universe of rated US life insurers.

The aggregate GAAP basis invested assets of the 10 Alt AM-owned insurers analysed by Fitch grew at a rate of roughly 8% from 2019 to June 2023. In contrast, invested assets of Fitch’s broader universe of rated US life insurers declined 0.6% during the same period.

“Alt IM insurer tie-ups are expected to continue despite the current higher interest rate environment, as Alt Ims look for ways to grow earnings and AUM and develop new assets for insurance partners,” Fitch said. “All else equal, the higher interest rate environment is not expected to meaningfully alter US life insurers’ investment allocation to private credit regardless of ownership structure.”

Related Articles