Antares Capital -Fri, 10/10/2025 - 13:33

The Yield Premium: Cutting Through the Noise for Insurance Investors How Should

Key Points:

Increased Flexibility: Recent Solvency UK reforms, particularly to the Matching Adjustment (MA), seem likely
to allow insurers to include more private credit loans in their portfolios, especially those with predictable cash flows, such as corporate direct lending.
Sub-Investment Grade Opportunities: The removal of caps on benefits from sub-investment grade (SIG) assets
may encourage insurers to allocate more to private credit, which is often below investment grade, to capture higher yields.
Risk Management Required: Insurers must balance the potential for higher returns with robust risk management
to comply with the Prudent Person Principle and new attestation requirements.
Regulatory Nuance: While the reforms appear to create opportunities, the complexity of assessing cash flow
predictability and credit quality for private credit loans requires careful consideration. Partnering with the right
asset manager that can provide these kinds of support becomes even more crucial.

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Contacts

Antares Capital

Founded in 1996, Antares has been a leader in private credit for nearly three decades. Today with approximately ~$86B of capital under management and administration as of June 30, 2025, Antares is an experienced and cycle-tested alternative credit manager. With one of the most seasoned teams in the industry, Antares is focused on delivering attractive risk-adjusted returns for investors and creating long term value for all of its partners. The firm maintains offices in Atlanta, Chicago, Los Angeles, New York, Toronto and London.

Visit Antares at www.antares.com or follow the company on LinkedIn at www.linkedin.com/company/antares-capital-lp. Antares Capital is a subsidiary of Antares Holdings LP, (collectively, “Antares”). Antares Capital London Limited is an appointed representative of Langham Hall Fund Management LLP, an entity which is authorized and regulated by the Financial Conduct Authority of the UK.

Rui Yang, CFA
Insurance Solutions

John Zilko, CFA
Head of Americas Investor Coverage

280 Park Ave FL 22
New York, NY 10017
insurancesolutions@antares.com

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