Munich Re has disclosed that its exposure to private credit totals between €2bn and €2.5bn, as regulators intensify scrutiny of insurers’ allocations to the asset class amid growing concerns around underwriting standards and liquidity, according to a report by Bloomberg.
Speaking in an interview with Bloomberg TV, chief financial officer Andrew Buchanan said private credit accounts for roughly 1% of the group’s overall investment portfolio, describing the exposure as manageable relative to the size of the reinsurer’s balance sheet.
The comments come at a time when the private credit market is facing heightened investor caution driven by concerns over credit quality, artificial intelligence-related disruption in technology sectors and broader questions surrounding lending discipline.
Germany’s financial regulator BaFin has also increased its focus on insurers’ exposure to private debt strategies. BaFin president Mark Branson said some insurers allocate more than 25% of investments to private debt and indicated the regulator would step up oversight of firms’ risk management and investment controls.
According to Branson, alternative assets represent just under 20% of total investments across the German insurance sector on average, with private debt accounting for roughly a quarter of those allocations.
Buchanan said Munich Re’s exposure is concentrated in senior secured private credit investments accessed through carefully selected fund managers with restructuring and workout expertise. He added that the firm remains focused on higher-quality assets that could prove more resilient if default rates increase.
Munich Re is not the only German reinsurer highlighting relatively modest exposure levels. Hannover Re said this week that its allocation to private credit funds represents around 1% of assets under management, although broader exposure including infrastructure debt and highly rated CLOs extends into the low single-digit billions of euros.
Meanwhile, Allianz has previously disclosed €141bn in non-traded debt investments, including approximately €24bn allocated to areas such as middle-market lending at the end of 2025.
