Recent concerns in the US private credit market have prompted investors to scrutinise APAC insurers’ exposure to these assets; however, the information provided is limited in both quantity and clarity, reflecting the inherent opacity of private credit.

Japanese insurers report varying levels of detail; Nippon Life holds around 1% of its total investments in private credit; meanwhile, Dai-ichi Life’s group-level exposure stands at 1.1%, or ¥630 bn; Meiji Yasuda is targeting ¥600 bn in private assets by FY26 and Sumitomo Life is planning a ¥300 bn allocation to private credit, both of these figures stay under 1% of their respective total investments.

In Hong Kong, AIA reports $6.1 bn in private credit (about 2.1% of total investments), over 60% of which is in senior secured direct lending;  its results have been strong, however, and there are no concerns regarding liquidity risk; Prudential plc’s policyholder funds are 3% invested in private credit and equity, whereas shareholder funds are minimally invested.

Korean and Taiwanese insurers have modest private credit exposure, and QBE in Australia holds private credit at just 1.6% of its $34 bn portfolio.