Accessing insurance capital for originators

Insurance companies represent one of the largest pools of long-duration capital in the world. With over $8 trillion in general account assets seeking yield, insurers are natural partners for originators with stable, investment-grade-adjacent collateral. But accessing insurance capital requires understanding their unique constraints: duration matching, NAIC ratings, regulatory capital, and extended timelines.

This guide covers how insurers evaluate ABF opportunities, how to access them through direct relationships and insurance asset managers, and what structures work for their requirements.

Why insurance capital matters

The insurance capital opportunity

Insurance companies need yield on long-duration liabilities. Traditional fixed income doesn’t provide enough spread over their liability costs. ABF offers higher yields with structures that can achieve investment-grade ratings.

What insurers bring:

Multi-year capital commitments (not annual renewals)
Large check sizes ($50M-$500M per relationship)
Patient capital with long investment horizons
Competitive pricing for assets that fit (SOFR + 150-300 bps)
Relationship stability (insurers don’t pull back like bank credit committees)

What insurers require:

Investment-grade or near-investment-grade credit profile
Duration matching to their liabilities (typically 3-10 years)
NAIC-friendly structures
Extensive reporting and credit monitoring
Larger portfolio sizes (typically $100M+ to engage)

When insurance capital makes sense

Your assets have 3+ year duration. Insurance works best for auto loans, equipment finance, mortgages, and other longer-dated assets where the duration matches insurance liabilities. Short-duration revolving portfolios (credit cards, BNPL) are a harder fit.

Your collateral is investment-grade adjacent. Insurers prefer assets that would rate BBB/Baa or better. Deep subprime consumer lending typically doesn’t fit insurance mandates.

You have scale. Insurance relationships require $50M-$100M minimum portfolio size. The diligence investment doesn’t make sense for smaller deals.

You want multi-year commitments. Insurance facilities often come with 3-5 year commitments versus bank annual renewals. If capital stability matters, insurance is attractive.

You’re willing to invest in the relationship. Insurance capital takes 6-18 months to access the first time. Originators seeking quick capital should look elsewhere initially.

Accessing insurance capital

Path 1: Direct insurance relationships

Large insurers have investment teams that allocate directly to ABF. Building direct relationships is time-intensive but provides the most favorable economics.

Major insurers with direct ABF programs:

MetLife
Prudential
New York Life
TIAA-CREF
Principal Financial
Lincoln Financial
Athene (Apollo-affiliated)
Global Atlantic (KKR-affiliated)

How direct relationships work:

Insurance general accounts are managed by internal investment teams. These teams have private credit allocations that include ABF. To access them directly:

Identify the right team. Look for “Private Placements,” “Private Credit,” or “Alternative Fixed Income” within the insurance company’s investment arm.
Make the introduction. Warm introductions through existing relationships, placement agents, or investment bankers are essential. Cold outreach rarely works.
Present a portfolio opportunity. Insurers typically invest in rated notes from warehouses or term ABS, not in raw loan pools. Present a structure, not just a portfolio.
Survive diligence. Insurance diligence is extensive: 4-6 months of credit analysis, operational review, and legal structuring.
Execute documentation. Insurance investments require detailed documentation and ongoing reporting obligations.

Requirements for direct relationships:

$100M+ portfolio (preferably $200M+)
Management team with institutional track record
Audited financials from a recognized firm
Existing warehouse facility with a recognized counterparty
Clear path to investment-grade ratings on structured notes

Path 2: Insurance asset managers

Insurance asset managers aggregate capital from multiple insurance companies and deploy it into ABF. They’re an easier path to insurance capital, though with a layer of economics between you and the ultimate source.

Major insurance asset managers:

Barings (Mass Mutual affiliate)
PGIM (Prudential’s asset manager)
Voya Investment Management
PineBridge Investments
Conning & Company
Nuveen (TIAA affiliate)
New York Life Investments

What insurance asset managers offer:

Access to multiple insurance company clients
More flexibility than direct insurance (they have discretion)
Faster decisions than engaging insurers directly
Smaller minimum investment sizes ($25M-$50M)
Expertise in ABF that direct insurance teams may lack

What they require:

Near-investment-grade credit profile
Duration matching to insurance liabilities
NAIC-compliant structures
Strong reporting and monitoring capabilities

How to approach them:

Identify the private credit or ABF team within the asset manager
Request introduction through shared relationships
Present your portfolio and proposed structure
Navigate their internal credit process (2-4 months typical)
Close into their commingled vehicles or separately managed accounts

Path 3: Insurance-affiliated alternative managers

Several large alternative asset managers have affiliated insurance companies that provide captive capital for ABF.

Examples:

Athene (Apollo Global Management)
Global Atlantic (KKR)
Fortitude (Carlyle)
Everlake (formerly AIG Life & Retirement, now Blackstone-managed)

What this path offers:

Integrated capital solution (warehouse + term + insurance takeout)
Single relationship manager across structures
Large capital pools with defined ABF allocations
Potentially faster access than traditional insurers

What to understand:

These platforms have return requirements beyond pure insurance yield
They may take equity-like positions alongside credit
The relationship is with the asset manager, who has insurance capital, not with the insurance company directly
Terms may be more aggressive than traditional insurance (higher spreads, more structured features)

Understanding insurance requirements

Duration matching

Insurance companies match assets to liabilities. An insurer writing 20-year annuities needs 20-year assets. An insurer writing 5-year structured settlements needs 5-year assets.

What this means for you:

Your Asset Duration	Insurance Fit	Notes
0-2 years	Poor	Too short to match most insurance liabilities
2-5 years	Moderate	Fits some shorter liability profiles
5-10 years	Excellent	Core insurance duration matching
10-20 years	Excellent	Premium duration for certain insurers
20+ years	Varies	Some insurers specifically seek ultra-long

Asset classes that typically fit:

Auto loans (4-6 year WAL)
Equipment finance (4-7 year WAL)
Residential mortgages (7-15 year WAL)
Commercial mortgages (5-10 year WAL)
Student loans (10-15 year WAL)
Aircraft/rail leasing (7-15 year WAL)

Asset classes that don’t fit well:

Credit cards (revolving, no defined term)
BNPL/point-of-sale (3-12 month WAL)
Merchant cash advances (30-90 day WAL)
Trade receivables (30-90 day WAL)

NAIC designations and capital charges

Insurance companies hold regulatory capital against their investments based on NAIC (National Association of Insurance Commissioners) designations. These ratings drive investment appetite.

NAIC designation overview:

NAIC	Equivalent Rating	RBC Factor	Insurance Appetite
1	AAA to A-	0.4%	Strong
2	BBB+ to BBB-	1.3%	Strong
3	BB+ to BB-	4.6%	Limited
4	B+ to B-	10.0%	Minimal
5	CCC+ and below	23.0%	Very limited
6	In default	30.0%	None

The RBC (Risk-Based Capital) factor determines how much capital the insurer must hold. A $100M investment with NAIC 1 designation requires $400K of capital. The same investment at NAIC 3 requires $4.6M of capital.

What this means for you:

Insurance capital requires structures that achieve NAIC 1 or 2 (investment grade)
Your underlying portfolio can be non-investment-grade, but the structure must create investment-grade tranches
Subordination, overcollateralization, and excess spread are tools to achieve the ratings
Insurance companies will not invest in positions below NAIC 2 in meaningful size

The SVO process

The Securities Valuation Office (SVO) is the NAIC body that assigns designations to insurance company investments. For private transactions (like ABF facilities), the SVO reviews and assigns a designation.

How SVO designation works:

The structure is presented to the SVO with supporting documentation
SVO analysts review credit quality, structure, and projected performance
SVO assigns an NAIC designation (or declines to provide one)
Insurance investors can then hold the position at that designation

SVO considerations for originators:

Structures must be designed with SVO acceptance in mind
Counsel and rating agency input help navigate SVO requirements
Certain structural features can create SVO filing challenges
Allow 4-8 weeks for SVO review in your closing timeline

Structuring for insurance capital

What structures work

Insurance companies typically invest in rated notes, not in raw loan pools or warehouse facilities. The path to insurance capital runs through structured products.

Typical insurance-eligible structures:

Term ABS with rated tranches. Traditional ABS issuance with AAA/AA/A tranches sold to insurance investors. This is the most common path but requires $100M+ portfolio size.
Private placement notes. Structured notes issued privately with NAIC filing. Can be smaller scale ($25M-$50M) but requires insurance relationship.
Insurance wrapper/repack. An insurance company wraps your credit risk and issues notes backed by that guarantee. Requires insurance company partnership.
Fund vehicle investment. Some insurance asset managers invest through fund structures that then invest in ABF. Less direct but more accessible.

Working with rating agencies

Insurance capital typically requires rated structures. Engaging rating agencies is part of the process.

For term ABS: Engage KBRA, DBRS, Fitch, or Moody’s/S&P. Rating agency processes take 8-12 weeks and require extensive portfolio analysis.

For private placements: Some insurance companies use internal ratings. Others require agency ratings even for private transactions.

Rating agency expectations:

Static pool data showing loss emergence by vintage
Modeling of cash flows under various stress scenarios
Legal opinions on true sale and bankruptcy remoteness
Servicer operational reviews
Ongoing surveillance commitments

Building insurance relationships

The long game

Insurance capital takes longer to access than bank or fund capital. The first relationship may take 12-18 months to close. But once established, insurance relationships are stable and growing.

Relationship development timeline:

Months 1-3: Introduction and initial screening

Secure introduction through shared relationships
Provide overview of your platform and portfolio
Initial credit team engagement

Months 4-8: Education and analysis

Detailed portfolio review and analysis
Management meetings (often multiple rounds)
Structural discussions and term exploration

Months 9-12: Credit process and approval

Formal credit committee submission
Internal investment approval
Term sheet negotiation

Months 13-18: Documentation and closing

Definitive documentation
SVO/regulatory approvals
Closing and funding

Maintaining relationships

Once you have insurance capital, maintaining the relationship is relatively straightforward.

Ongoing requirements:

Quarterly portfolio reports and performance updates
Annual review meetings with investment team
Prompt notification of material events
Clean compliance with structural requirements

Growing the relationship:

Insurance investors often increase allocations to performing platforms
New products or asset classes can be introduced to existing partners
Referrals to other insurance companies through the asset manager network

When insurance says no

Insurance companies decline opportunities for several reasons:

Duration mismatch. If your assets don’t match their liability profiles, they can’t invest regardless of credit quality.

Credit concerns. If the underlying collateral or your platform doesn’t meet their credit standards, they’ll decline.

Structural issues. NAIC designation concerns, documentation issues, or structural features that don’t fit their requirements.

Capacity. Insurance companies have allocation limits per issuer, asset class, and rating. They may like your deal but lack capacity.

What to do:

Ask for specific feedback on why they declined
Determine if issues are fixable or fundamental
Consider if a different structure would fit their requirements
Maintain the relationship for future opportunities

Timeline expectations

Insurance capital has the longest timeline of any capital provider type.

Phase	Duration	Key Activities
Relationship initiation	1-3 months	Introductions, initial meetings, platform overview
Due diligence	3-6 months	Portfolio analysis, management meetings, operational review
Credit approval	2-4 months	Internal committee process, term negotiation
Documentation	3-6 months	Legal drafting, SVO filing, closing conditions
Total	9-18 months	From first meeting to first funding

Why it takes so long:

Insurance credit processes are conservative and thorough
Regulatory considerations (SVO, state insurance departments) add time
Documentation is extensive and heavily negotiated
Multiple internal stakeholders must approve

How to manage the timeline:

Start insurance conversations 18-24 months before you need capital
Have alternative capital (bank or fund) during the relationship-building period
Use placement agents with insurance relationships to accelerate introductions
Be patient; insurance relationships compound over time

Cross-references

Sourcing capital overview for the full provider landscape
NAIC filing and SVO process for regulatory details
Approaching banks for faster-access alternatives
Raising capital (allocator perspective) for the investor side of insurance capital