Global life insurance companies are facing increasing pressure to boost their allocations to private credit in search of higher yields, despite growing concerns about rising debt risks. According to a Goldman Sachs Asset Management survey of over 400 senior investment professionals at life, property, and other insurers, 58% plan to increase their private credit allocations this year. The move is driven by the search for higher returns than those offered by publicly traded corporate bonds. Over the last decade, private credit has outperformed investment-grade corporate debt by approximately 6.5 percentage points annually, making it an attractive option for insurers looking to enhance their profitability in a competitive market.
