Private Credit’s Impact on Life Insurance Growth
According to a recent analysis by Moody’s Ratings, the increasing application of private credit is set to have a beneficial effect on the life insurance sector in the United States. The report indicates that life insurers are seeing enhanced returns from expanding their investments in this asset class, which is then enabling them to adopt more competitive pricing strategies.
In a note released on Monday, Moody’s analysts outlined that the current upward trend in private credit is expected to prompt alternative asset managers to further engage with life insurers, whether through acquiring them directly or establishing more collaborative partnerships. The objective for these managers is to secure greater access to capital to fuel their dedicated funds, which is in line with the current financial landscape.
