U.S. Life Insurers Hold $807 Billion in Illiquid Credit Assets as of End-2025

According to Moody's, U.S. life insurance companies held $807 billion in illiquid fixed-income assets as of end-2025, representing 20% of the industry's $4 trillion fixed-income portfolio, up from 18% the prior year. The assets, comprised of securities with private ratings (PLR) lacking formal third-party ratings or observable market prices, have raised concerns about industry liquidity and concentration risk.
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