Direct Lending for Insurers: Enhancing Yields & Optimizing Capital Efficiency

Direct Lending for Insurers: Enhancing Yields & Optimizing Capital Efficiency
Private credit is reshaping insurer portfolios as rated structures and feeder funds open new sources of capital-efficient yield. With the market now exceeding $2 trillion, insurers are increasingly asking a central question: How might private credit fit into my portfolio?

Direct lending continues to expand as borrowers seek flexible financing solutions and investors look for higher income and diversification, with certain structures offering 6–7% yield premiums over broadly syndicated loans. As insurers work to balance liquidity, income needs, and capital efficiency, private credit—particularly through rated structures and tailored fund solutions—offers a disciplined path to participate in this growing market. Conning helps insurers assess how direct lending can fit within long-term balance-sheet goals through solutions built specifically for insurance portfolios.

Riding the Growth Wave Into 2025