Key Takeaways
- • S&P Global Market Intelligence estimates Bermuda's life and annuity insurers hold about $435.7 billion in privately originated credit, according to its analysis of filings from 122 Bermuda insurers.
- • Private credit represents 33.7 per cent of the roughly $1.29 trillion in cash and invested assets across the 122 insurers examined.
- • Some 60.1 per cent of private credit holdings are valued using Level 3 inputs, versus 3.6 per cent for public credit, limiting outside visibility into asset values.
- • Affiliated private credit holdings total $58.7 billion, with Athene Annuity Re Ltd (part of Apollo Global Management's insurance business) accounting for about half of that exposure.
- • The analysis follows the Bermuda Monetary Authority's first company-by-company asset and liability disclosures for year-end 2025 covering all registered long-term insurers.
Summary
Bermuda's life and annuity insurers hold an estimated $435.7 billion in privately originated credit, according to an analysis by S&P Global Market Intelligence. The report follows the Bermuda Monetary Authority's publication, days earlier, of unprecedented company-by-company asset and liability disclosures for year-end 2025 covering all registered long-term insurers.
S&P examined filings from 122 Bermuda insurers holding about $1.29 trillion in cash and invested assets. Private credit, which includes privately placed corporate debt, mortgage loans and interests in loan funds, accounted for 33.7 per cent of that total. By category, corporate private placements were the largest at $120.89 billion, followed by private asset-backed securities at $70.29 billion and direct loans at $9.35 billion.
Valuation transparency is a central concern. S&P found that 60.1 per cent of private credit holdings were valued using Level 3 inputs, compared with 3.6 per cent for public credit. Level 3 valuations rely on estimates and assumptions where observable market prices are scarce, making it harder for outsiders to assess asset values. Valuation can be especially sensitive when the issuer is affiliated with the insurer holding the debt. The analysis identified $58.7 billion in affiliated private credit holdings. Athene Annuity Re Ltd, part of Apollo Global Management's insurance business, accounted for about half of that exposure and reported $74.17 billion in private credit holdings overall. Several Apollo-linked vehicles appeared across multiple insurers: fourteen reported a combined $5.82 billion in AP Grange Holdings LLC, while AMAPS 1 and AMAPS 2 accounted for a combined $5.78 billion.
S&P noted that private credit can offer higher returns but cannot easily be sold on public markets, which may constrain a reinsurer's ability to raise cash if needed. The scrutiny comes as private equity firms deepen ties with life insurers.
The BMA's statements include spreadsheets detailing each company's reserves, bonds and loans, structured assets, mortgage loans and derivatives, along with explanations of how each insurer believes it has matched assets and liabilities. BMA CEO Craig Swan described the statements as "an important milestone in Bermuda's enhanced public disclosure framework for commercial long-term insurers, strengthening transparency across the sector." The regulator's expanding disclosure requirements aim to ensure life reinsurers understand investment risks and that policyholder interests are protected.
S&P examined filings from 122 Bermuda insurers holding about $1.29 trillion in cash and invested assets. Private credit, which includes privately placed corporate debt, mortgage loans and interests in loan funds, accounted for 33.7 per cent of that total. By category, corporate private placements were the largest at $120.89 billion, followed by private asset-backed securities at $70.29 billion and direct loans at $9.35 billion.
Valuation transparency is a central concern. S&P found that 60.1 per cent of private credit holdings were valued using Level 3 inputs, compared with 3.6 per cent for public credit. Level 3 valuations rely on estimates and assumptions where observable market prices are scarce, making it harder for outsiders to assess asset values. Valuation can be especially sensitive when the issuer is affiliated with the insurer holding the debt. The analysis identified $58.7 billion in affiliated private credit holdings. Athene Annuity Re Ltd, part of Apollo Global Management's insurance business, accounted for about half of that exposure and reported $74.17 billion in private credit holdings overall. Several Apollo-linked vehicles appeared across multiple insurers: fourteen reported a combined $5.82 billion in AP Grange Holdings LLC, while AMAPS 1 and AMAPS 2 accounted for a combined $5.78 billion.
S&P noted that private credit can offer higher returns but cannot easily be sold on public markets, which may constrain a reinsurer's ability to raise cash if needed. The scrutiny comes as private equity firms deepen ties with life insurers.
The BMA's statements include spreadsheets detailing each company's reserves, bonds and loans, structured assets, mortgage loans and derivatives, along with explanations of how each insurer believes it has matched assets and liabilities. BMA CEO Craig Swan described the statements as "an important milestone in Bermuda's enhanced public disclosure framework for commercial long-term insurers, strengthening transparency across the sector." The regulator's expanding disclosure requirements aim to ensure life reinsurers understand investment risks and that policyholder interests are protected.
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