Private credit investments account for 11 per cent of the portfolios of major Europe-based global insurers and reinsurers, according to analysis by S&P Global Ratings.

The allocation, which was calculated on a weighted-average basis, is higher than the wider European insurance sector average. However, S&P said the exposure was not necessarily riskier, as a large proportion of the investments were mortgage-related assets, which the ratings agency views as relatively safe.

The findings, published in S&P’s European Insurance 2026 Mid-Year Outlook, predicted that most European insurers will maintain solid profitability over the remainder of the year despite muted economic growth.

“We believe the European insurers we rate are well placed to weather potential challenges such as inflation and volatility risk in financial markets,” said S&P Global Ratings credit analyst Volker Kudszus. “This is due to their focus on technical profitability, prudent asset allocation and material capital surplus.”

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