Life insurers backed by major alternative asset managers including KKR and Apollo Global Management, are significantly increasing their exposure to private credit and other illiquid assets, according to a report by the Wall Street Journal citing new analysis from Moody’s Ratings.
The report shows that US life insurers collectively held around $807bn of private credit and other illiquid investments in 2025, equivalent to roughly 20% of their $4tn fixed income portfolios. This marks an increase from $685bn, or 18%, in 2024, highlighting the continued expansion of private markets within insurance balance sheets.
The growth is being driven disproportionately by insurers affiliated with large alternative asset managers, including KKR and Apollo Global Management, whose insurance platforms have been among the most active buyers of private credit assets.
According to Moody’s, a concentrated group of roughly 10 large insurers accounts for $352bn of private and illiquid investments, underscoring the degree to which exposure is clustered within a relatively small number of balance sheets.
The analysis also highlights the increasing complexity of these allocations. Around 38% of the assets are tied to structured and asset-backed credit rather than traditional corporate or government debt, while nearly 10% carry below-investment-grade ratings.
Moody’s noted that insurers owned by private equity firms have expanded holdings at a faster pace than the broader market, with both KKR’s insurance platform Global Atlantic Financial Group and Apollo’s Athene Holding increasing private credit allocations by approximately 30% over the period reviewed.
The findings underscore the growing convergence between insurance capital and private credit markets, as insurers seek higher-yielding assets to match long-duration liabilities. At the same time, the trend has drawn increased scrutiny from regulators and credit analysts concerned about opacity, valuation practices and the concentration of risk in less liquid instruments.
While the shift has supported rapid growth in private credit origination, it has also raised questions about risk dispersion, particularly as more complex structured assets account for a rising share of insurer portfolios.
