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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Antares Capital

Antares Capital is a leading alternative credit manager with approximately $90 billion in capital under management and administration as of December 31, 2025. For three decades, we have sought to deliver disciplined, dependable credit solutions. Today, our platform focuses on core private credit, liquid credit, and liquidity solutions, managed for the benefit of a global investor base and powered by long-standing sponsor relationships that help unlock attractive investment opportunities across market cycles. Backed by CPP Investments, we are dedicated to creating long-term value for the investors, sponsors, and borrowers we serve. 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 https://www.linkedin.com/company/antares-capital-lp.

Antares Capital is a subsidiary of Antares Capital Management LLC, who is majority owned by The Canadian Pension Plan Investment Board, alongside 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

Jeffrey Stammen
Global Head of Institutional Business Development

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

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