From Yahoo Finance: 2025-06-02 08:14:00

U.S. life insurers shifted nearly $800 billion in reserves offshore between 2019 and 2024 due to the growth of private credit, Moody’s report says. Public insurers adapted to low interest rates by partnering with private equity firms and alternative asset managers to stay competitive. Roughly $75 billion in insurer-private equity M&A deals took place during this time.

Life insurers and asset managers moved billions from U.S. businesses to offshore accounts in Bermuda or Cayman Islands to free up capital for growth and shareholder-friendly activities. The U.S. life insurance industry held around $6 trillion in cash and assets at year-end 2024, with one-third allocated to private credit. Moody’s notes a gradual shift to private credit investments.

While corporate bonds and real estate dominate insurers’ portfolios, fund finance is expected to grow in the next three to five years. However, Moody’s warns of risks due to lack of transparency and liquidity in private credit assets. The evolving business model could pose challenges in valuing these assets and increase risk in a downside scenario if liquidation is necessary.



Read more at Yahoo Finance: US life insurers shifted $800 billion offshore from 2019 to 2024, Moody’s says