Private credit disclosures expand independent SVO review for insurers

More of the private credit sitting on insurers' balance sheets will face independent review, under reporting revisions Debevoise says expand what must be disclosed on individual holdings.

The revisions require more granular reporting on each holding's characteristics, including the underlying collateral type, credit enhancement structures, affiliated party involvement and valuation methodology. The effect is that a greater share of the private credit instruments held by insurance companies becomes subject to independent SVO review.

Bringing more of those assets under independent review narrows the scope for an insurer to rely on its own characterisation of a bespoke holding. And the fields now required — collateral, enhancement, affiliation and valuation method — point to closer scrutiny of structure, conflicts and pricing within the private credit book.

Sources: debevoise.com