UK pension insurers increase private credit exposure as S&P flags valuation risks

UK pension insurers are ramping up their involvement with private credit, which includes risky, hard-to-value assets that now make up over 10% of some major players' portfolios. This trend, highlighted by S&P Global Ratings, raises concerns about the potential valuation risks these insurers might face. The move into private credit could impact the financial stability of these insurers, especially as these assets are often opaque and difficult to assess, potentially leading to future challenges in managing pension liabilities.