Life insurers reported affiliated bond investments of $121 billion in Schedule D Part 1 and Part 2, which include issuer credit obligations and ABS, respectively, according to a Capital Markets Special Report in September by the National Association of Insurance Commissioners.

Issuer credit obligations include traditional bond investments, such as corporate bonds, and other structures for which payment depends on an operating entity’s creditworthiness. Life insurers with a PE (private equity) relationship accounted for approximately half of all life insurers’ affiliated investments.

They also accounted for approximately 95% of life insurers’ affiliated ABS, 50% of affiliated issuer credit obligations, and one-third of affiliated other long-term investments. Lastly, among life insurers with PE relationships, accounted for almost 50% of all life insurers’ total reported affiliated investments. ABS includes structures in which debt service to investors is derived from the cash flows on the underlying collateral.

For example, with collateralized loan obligations (CLOs), principal and interest are paid to noteholders based on the cash flows derived from income generated by the transaction’s underlying bank loan collateral. Coincidentally, many large life companies have CLO asset managers that are affiliates or subsidiaries. Therefore, a portion of their affiliated ABS exposure likely consists of CLOs issued by affiliated entities.

Over the last several years, there has been an uptick in the number of life insurers acquired by private equity (PE) firms. As such, life insurers may leverage their relationship with the PE firm to access capital markets or investments not otherwise available to them, while the PE firm benefits from additional income generated through the acquired life insurer’s business.

Source: “U.S. Life Insurers’ Affiliated Investments at Year-End 2025,” September 2026.