Insurance Solutions

Capital Solutions, Explained: A Perspective for European Insurers

July 2026 – 5 min read

For insurance investors, capital solutions is an increasingly important segment within the capital efficient private credit universe, combining enhanced return potential with the contractual cash flows, downside protection and capital efficiency that come with debt investment.

For insurance investors, capital solutions is an increasingly important segment within the capital efficient private credit universe, combining enhanced return potential with the contractual cash flows, downside protection and capital efficiency that come with debt investment.

The prolonged low-yield environment of the last decade pushed many insurers toward private credit as they sought to enhance returns. Since then, yields have risen significantly, but spreads remain tight, and private credit – particularly middle market lending – has become a permanent allocation for many insurers. As demand has put some downward pressure on traditional middle market loan spreads, more insurers are looking to further broaden their investment universe, seeking to enhance risk-adjusted returns, improve diversification, and increase capital efficiency. Within this context, capital solutions is emerging as an important step in that evolution.

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Headshot of Michael Searles smiling at the camera.

Michael Searles

Head of North America, Capital Solutions
Headshot of Ruolin Wang smiling at the camera.

Ruolin Wang

Director, Insurance Solutions

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