Over the past decade, PE giants — Apollo, KKR, Blackstone — have bought life insurance companies. Fitch Ratings reported in May 2026 that the U.S. private credit default rate hit a record 6.0% in April and remains at the record high in May. For private credit portfolios loaded with illiquid, long-duration AI-linked loans, that’s a problem. Private credit refers to loans made outside public markets — typically by non-bank lenders to private companies. It’s a safety net that protects policyholders when a life insurance company goes bankrupt.