U.S. Insurers' Private Credit Exposure Grows as Investors Fear AI Disruption

U.S. life insurers have increased allocations to less-liquid private credit in recent years to boost long-term returns, while asset managers such as Apollo and KKR have deepened those ties by acquiring insurance platforms. The Federal Reserve Bank of Chicago estimates that such investments reached $849 billion in 2024, more than double the 2014 level. If software borrowers are disrupted by AI, losses could flow back onto insurers' balance sheets.

The Financial Times cited Barclays on April 14, 2026, as saying that private credit assets held by the U.S. life insurance industry grew by more than 20% in 2025 and accounted for about 10% of total assets at year-end. The proportion exceeded 15% at affiliated insurers including Apollo-backed Athene and KKR-owned Global Atlantic. As a wave of fund redemptions continued, insurance became one of the worst-performing sectors in the U.S. investment-grade bond index.