Private Credit Fuels Insurance Companies' Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 10 2026
0mins
Source: Newsfilter
- Insurance Demand: Ares CEO Michael Arougheti highlighted at the Morgan Stanley US Financials conference that insurance companies rely on private credit to meet policyholder return objectives, indicating a strong dependence on private capital within the industry.
- Growth in Private Credit: According to AM Best, U.S. life and annuity insurers' private credit holdings have more than doubled over the past decade, reflecting the industry's proactive approach to seeking yield sources amid a historically low interest rate environment.
- Regulatory Focus: U.S. Treasury Secretary Scott Bessent is consulting with state insurance commissioners to enhance oversight, demonstrating regulators' commitment to ensuring transparency and lending discipline as the insurance sector increasingly engages in private market investments.
- Increased Transparency: Arougheti emphasized that while regulation may pose challenges, it also fosters greater transparency in the insurance industry's private market investments, ensuring clarity in structures and performance, which ultimately boosts investor confidence.
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Analyst Views on ARES
Wall Street analysts forecast ARES stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 128.350
Low
155.00
Averages
191.40
High
223.00
Current: 128.350
Low
155.00
Averages
191.40
High
223.00
About ARES
Ares Management Corporation is an alternative investment manager offering clients complementary primary and secondary investment solutions across various asset classes. Its segments include Credit Group, Private Equity Group, Real Assets Group, Secondaries Group, and Other. The Credit Group segment manages credit strategies across the liquid and illiquid spectrum, including liquid credit, alternative credit, direct lending and APAC credit. The Private Equity Group segment categorizes its investment strategies as corporate private equity, special opportunities and APAC private equity. The Real Assets Group segment manages comprehensive equity and debt strategies across real estate and infrastructure investments. The Secondaries Group segment invests in secondary markets across a range of alternative asset class strategies, including private equity, real estate, infrastructure and credit. It has operations across North America, South America, Europe, Asia Pacific and the Middle East.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Demand Fluctuations: During economic downturns, mid-sized firms may curtail borrowing, making it challenging for business development companies to expand their income-generating loan portfolios, which could affect their dividend payment capabilities and market attractiveness.
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- Market Demand Fluctuations: In downturns, mid-sized companies may curtail borrowing, limiting BDCs' income sources; although they can convert interest payments into dividends, their ability to expand income-generating loans is constrained.
- Investor Confidence Impact: While demand for BDC funding remains healthy, investor concerns about borrowers' repayment capabilities may hinder BDCs' ability to raise capital, leading some companies like Gladstone Capital and Goldman Sachs BDC to lower their per-share payouts, reflecting challenges in the current market environment.
See More
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- Hedging Against Tech Sector Volatility: By increasing her position in Ares while trimming AI-related holdings, Ostian strategically positions her portfolio to hedge against potential volatility in the technology sector, highlighting the importance of diversification.
- Concerns Over Industry Transparency: While Ostian remains optimistic about Ares, analyst Jack Bowman expressed concerns regarding the transparency and complex financial structures of the private credit industry, advising investors to focus on general partners rather than limited partner funds to mitigate risks.
See More
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- Partnership Dynamics: Hines and Ares co-own the project, with Foundry Commercial retained as the exclusive leasing team, showcasing their strong influence and resource integration capabilities in the national market.
See More
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- Project Overview: Foundry Commercial has announced the start of construction at Parkside Commerce Center in Durham, North Carolina, which includes four buildings totaling 809,141 square feet, designed to meet the needs of advanced manufacturing and biomanufacturing sectors.
- Strategic Location: The development is strategically positioned at the intersection of I-40, I-540, Hwy 147, and the I-85 corridor, providing convenient access that is expected to attract more businesses and drive regional economic growth.
- Phased Delivery: The project will be delivered in two phases, with Phase I expected to be completed in Q4 2027, featuring two buildings totaling 521,548 square feet with 36-foot clear heights, catering to high-demand warehousing and distribution needs.
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