US Insurance Regulators Review Investment Structures Used By Apollo & KKR

US insurance regulators are examining investment structures used by private capital firms, including Apollo and KKR, over concerns about transparency and interconnected risks.

Documents released by the National Association of Insurance Commissioners (NAIC) highlight risks linked to multi-asset securitisations, which are increasingly being used by life insurers. These investments combine different asset classes, including private credit, mortgages, fund stakes and corporate loans.

The NAIC said the structures could create interconnected exposures across insurers and may result in circular ownership, where investment vehicles hold stakes in one another. Regulators are also assessing whether some products could face maturity mismatches between long-term payment commitments and shorter-duration underlying assets.

The working group is considering additional disclosure requirements for these investment structures. Apollo said its products have diversified holdings, high-rated collateral and have been reviewed by regulators. KKR declined to comment. The review comes as insurers continue increasing investments in private market assets.