Insurers and private credit: Making a strategic priority a long-term advantage

  • September 29, 2025

As investment-led insurance strategies have become more prevalent, private credit has become an important part of insurers’ balance sheets. This move gathered momentum in the low interest rate environment following the financial crisis, but even with today’s higher-rates, private credit remains critical for generating attractive risk-adjusted returns and supporting long-term liability management.

For insurers, the challenge is not simply gaining access to and increasing allocations at a reasonable cost but doing so effectively. Private credit creates two primary layers of complexity: (i) managing operational strain in areas with limited data accessibility and (ii) integrating these investments into broader reporting and capital strategies, including reinsurance (as a tool for AUM growth). This can be difficult. Investments and liabilities teams – traditionally siloed functions – need to work side-by-side to enable effective decision making regarding structuring, asset liability management and infrastructure.

Realizing your private credit goals

To make the most of your private credit strategies, you’ll need confidence that:

 

  • Your strategy aligns across finance, actuarial, investments and risk.
  • You have adequate data to inform and processes to implement strategic decisions that drive value.
  • You can structure from a GAAP, stat, and tax perspective to effectively realize the benefits you want.
  • Your back and middle office, including data management, asset maintenance and valuation, are fit for purpose.

 

In this report, we describe in detail how insurers can make the most of their private credit strategies, managing related risks and taking advantage of appropriate opportunities.

Private credit is not a single asset class but a channel that connects multiple asset types to insurers’ broader capital strategy.

Access the full report to read more about:

  • Segmentation
  • Capital optimization and structuring
  • Sourcing private credit channels
  • Operational and risk considerations
  • Asset liability and risk management
  • Interest rate and currency hedging considerations
  • Regulation

Insurers and private credit: Making a strategic priority a long-term advantage

(PDF of 494.17KB)

PwC’s Dan Sullivan, Rich de Haan, Chris Farwell and Martin Smit contributed to this report.

Contact us

Jeremy Phillips

Partner, Financial Markets and Real Estate, PwC US

Alex Lemieux

Principal, Risk Modeling Services, PwC US

Adam Parkes

Director, Financial Markets and Real Estate, PwC US

Suo Wu

Director, Risk Modeling Services, PwC US

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