A three-notch downgrade on a zero-default portfolio can more than double an insurer's capital requirement.

Read the full investment breakdown on Substack: https://open.substack.com/pub/fixedfloating/p/when-annuities-meet-private-credit?r=718tew&utm_campaign=post&utm_medium=web

Catch our first deep dive with Jakub on the PE Insurance Flywheel (Episode 3): https://fixedfloating.substack.com/p/private-credits-insurance-flywheel

Josef Pschorn speaks with Jakub Lichwa of TwentyFour Asset Management about how PE-backed insurers use annuities to fund private credit exposure, why offshore reinsurance creates regulatory arbitrage, and where these capital structures begin to echo pre-2008 shadow banking patterns.

Key Takeaways:

• Rating downgrades hit capital requirements faster and harder than actual credit defaults

• Private placements offer an illiquidity premium that structurally matches annuity durations
• Asset-intensive reinsurance enables massive capital release through offshore affiliated structures
• State guaranty funds provide backstops today that were absent in the shadow banking era

Full analysis: https://open.substack.com/pub/fixedfloating/p/the-invisible-tech-moat?r=718tew&utm_campaign=post&utm_medium=web

Connect with Fixed + Floating: LinkedIn ⁠https://www.linkedin.com/company/fixed-floating⁠ | X ⁠https://twitter.com/FixedFloating⁠

Check out Jakub's work at TwentyFour Asset Management

Disclaimer: Fixed + Floating is for informational purposes only. Not investment, legal, or tax advice. Host/guest views are their own. Consult professionals before investing.

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