PRA takes action on funded reinsurance

Regulators are taking a growing interest in private credit funded reinsurance

PRIVATE credit is increasingly dominating the global regulatory agenda in financial services, driven by rapid expansion in the private credit markets and financial institutions’ exposures to those markets. The Financial Stability Board recently published a report on vulnerabilities in private credit, which estimated that the private market had grown to an estimated £1.5trn to £2trn by the end of 2024.