Warren gives NAIC until 24 September to answer on insurers’ affiliated assets and private credit

Related-party lending is permitted under US insurance regulation subject to disclosure requirements that let regulators examine whose interests an owner is putting first, and the reporting places a Justice Department inquiry in that area. TWG Global has said "There has been no fraud", and that the Group 1001 insurance companies are working with the Delaware Department of Insurance.

One question asks whether the NAIC has identified shortcomings with the "filing exempt" process "that would allow insurers to bypass the Commission’s review, using an external firm’s opinion instead". The filing exempt rule dates from 2004 and lets bonds carrying a current, monitored rating from a nationally recognised statistical rating organisation (NRSRO) skip filing with the NAIC’s Securities Valuation Office, which otherwise assigns their NAIC designation. Others ask whether the NAIC has analysed pension fund and state guaranty fund exposure to credit risk; Warren’s charge is that NAIC reform is unfinished, with many measures "still being implemented, or remain under development".

For a UK reader, the affiliated-asset and private credit questions Warren puts to the NAIC concern structures the PRA consulted on in CP8/26, which records higher proportions of "illiquid and private credit-related assets being accepted in collateral arrangements for funded reinsurance arrangements" and reinsurers "often based offshore".

CP8/26 proposes moving the capital held against the average funded reinsurance transaction from what the Bank of England’s April 2026 announcement calls "capital worth 2-4% of the value of the annuity liabilities" to "around 10%", against UK funded reinsurance exposure the announcement puts at around £40 billion; the consultation closed on 31 July 2026.

For an annuity writer the consequence is in the savings provision: business where the risks "are fully transferred on or before 30 September 2026" is saved, and business written subsequently is in scope of the new rules, which the PRA proposes to apply from an implementation date that "would be 1 July 2027". The Bank of England’s April 2026 announcement says only that the proposals "would apply to any business from 1 October onwards", naming no year and not the proposed implementation date.

EIOPA’s February 2026 consultation on the supervision of (re)insurance undertakings related to private equity firms, which covered private credit, illiquid assets, balance-sheet optimisation and reliance on "reinsurers (in some case belonging to the same private equity group) located in third-countries", has since closed.

Sources: banking.senate.gov