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U.S. Insurers Shift $685B to Riskier Private Debt

11/14/2025

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Summary

Story summary

Moody's Ratings reports that illiquid investments in U.S. life insurers' fixed-income portfolios totaled $685 billion at the end of 2024, representing 18% of $3.8 trillion in fixed-income assets.
In the first half of 2025, less-liquid private debt accounted for about 23% of the $522 billion in bonds purchased by insurance companies.
This shift toward private credit signals a strategic change in investment approaches within the industry, with potential implications for liquidity and risk management.

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Story summary

Moody's Ratings reports that illiquid investments in U.S. life insurers' fixed-income portfolios totaled $685 billion at the end of 2024, representing 18% of $3.8 trillion in fixed-income assets.
In the first half of 2025, less-liquid private debt accounted for about 23% of the $522 billion in bonds purchased by insurance companies.
This shift toward private credit signals a strategic change in investment approaches within the industry, with potential implications for liquidity and risk management.