Illiquid assets represented an estimated 19.4% of German insurers’ invested assets in 2025, up from 15.8% in 2019, Moody’s Ratings has revealed.
Life insurers seeking to honour guaranteed rates of return on savings products accounted for most of the increase.
Furthermore, exposure to infrastructure, private equity and alternative funds grew the fastest, with mortgages and loans accounting for the largest share of insurers’ illiquid portfolios.
Private credit accounted for around 9.3% of German insurers’ total invested assets at YE2024, exceeding the European average of 7.5%. This reflects German insurers’ participation in traditional mortgage lending and private placements.
Moody’s said German insurers’ exposure to private credit is likely to continue to expand, supported by its yield, liability matching and diversification benefits, and rising demand for private capital to support Germany’s investment needs.
