US life and annuity insurers increased their private credit holdings by 6% in 2024, continuing a trend that has seen these assets double over the past decade, according to a new report from AM Best.

The report notes that as traditional banks have reduced their commercial lending, nonbank lenders such as private equity and asset management firms have filled the gap, resulting in increased issuance of private credit. Some of these firms have entered the life and annuity market through acquisitions or minority investments, using insurance companies as platforms for permanent capital or to manage investment portfolios.

Read at Insurance Business Mag