The recent Financial Times piece, “Private credit exposure turns investors away from US life insurers” (April 14, 2026) offers a misleading representation of the industry’s private credit assets. If it had included insights from life insurers, the article would have provided readers with important and salient facts.

Private credit has been part of life insurers’ portfolios for decades, providing strong returns while bolstering insurers’ long-term liabilities. While it’s true that some life insurers have been increasing their private credit holdings, a recent report from the S&P rating agency found that companies are managing the liquidity and complexity risks associated with private credit responsibly. And just this week, the head of the IMF’s Monetary and Capital Markets Department said that the industry’s exposure to private credit “remains very small” and is not a threat to the global financial system.

Life insurers also operate under heavy scrutiny from state insurance regulators, who have a long track record of minimizing risks to policyholders and the financial system. Since the financial crisis of 2008, regulators’ enhancements to this oversight have made the industry even more resilient to potential financial shocks. This intense supervision is a key reason why life insurers in 2021, at the height of the COVID pandemic, were able to pay a record $100 billion in life insurance benefits while maintaining capital well above regulatory requirements.

As 20 million Americans approach the age of 65, the demand for financial guarantees offered by life insurance companies is anticipated to increase. Life insurers, guided by prudent investment strategies and robust regulatory oversight, are well-equipped to address this growing need.

David Chavern
President and CEO
American Council of Life Insurers