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Managing risk is critical as private credit holdings increase

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008  250922s20251020usa|||| ||| ||eng d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
084  ‎$a‎212
1102 ‎$0‎MAPA20080441371‎$a‎A.M. Best Company
24510‎$a‎Managing risk is critical as private credit holdings increase‎$c‎A.M. Best Company Inc
260  ‎$a‎New Jersey‎$b‎A.M. Best Company Inc‎$c‎2025
300  ‎$a‎7 p.
4900 ‎$a‎Best's special report‎$v‎October, 2025
5050 ‎$a‎Principal takeaways -- Increasing over 6% in 2024 -- Rising allocations and illiquid assets -- Steady shift to non-MBS -- Private letter ratings impact on credit quality -- Concentration risks relative to capital and surplus
520  ‎$a‎The report explores the growing trend of private credit investments among life and annuity insurers, whose holdings have more than doubled over the past decade while publicly traded investments remained flat. In 2024 alone, private placements grew over 6%, with non-144a bonds more illiquid and opaque reaching $950 billion and accounting for a significant portion of insurers' portfolios. The report highlights a shift from traditional issuer obligations to structured non-mortgage-backed securities (non-MBS), including middle market CLOs and esoteric asset-backed instruments. It also examines the role of private letter ratings (PLRs), which are less transparent but often associated with higher credit quality. As exposure to below investment grade private credit grows, the report emphasizes the importance of robust risk management, due diligence, and liquidity stress testing to safeguard insurers' financial stability
650 4‎$0‎MAPA20080597269‎$a‎Inversiones privadas
650 4‎$0‎MAPA20080597252‎$a‎Inversión crediticia
650 4‎$0‎MAPA20190001113‎$a‎Seguros vinculados a valores
650 4‎$0‎MAPA20080538279‎$a‎Bonos
650 4‎$0‎MAPA20080586317‎$a‎Mercado de valores
650 4‎$0‎MAPA20080614508‎$a‎Instrumentos financieros
650 4‎$0‎MAPA20080547967‎$a‎Liquidez
650 4‎$0‎MAPA20110021238‎$a‎Estabilidad financiera
650 4‎$0‎MAPA20080573614‎$a‎Renta vitalicia
7102 ‎$0‎MAPA20080441371‎$a‎A.M. Best Company
856  ‎$u‎https://news.ambest.com/newscontent.aspx?refnum=269993