Moody's said American insurance companies are aggressively acquiring private credit.

According to the latest research by Moody's rating, the private credit boom is rapidly changing the investments of American life insurance companies, with some companies allocating more than half of the fixed income assets needed to support policies and annuities to illiquid debt. Of the $3.8 trillion in fixed income investments held by insurance companies as of the end of 2024, illiquid investments amount to $685 billion, accounting for approximately 18%. The report states that the pace of buying seems to be accelerating, with illiquid private debt representing about 23% of the $522 billion in bonds purchased by insurance companies in the first half of 2025. Moody's found that the industry's holdings are unusually concentrated, with just 10 insurance companies controlling approximately 43% of the total holdings of illiquid assets as of the end of 2024.