Fitch Ratings, the credit ratings agency, has highlighted the potential governance implications for the US life insurance sector following Delaware Life Insurance Company’s recent reclassification of certain investments as affiliated holdings. The agency said the development reflects a broader trend as life insurers increase their use of private credit, affiliated asset management relationships and more complex investment and reinsurance arrangements. The agency reported that Delaware Life’s affiliated investment exposure increased by almost twenty times following the reclassification, reaching 40% of invested assets compared with 2% at year-end 2025. Fitch Ratings said this revised exposure represented the highest level among the North American life insurers within its rated portfolio at year-end 2025. The agency expects governance considerations to play a greater role in future ratings assessments as life insurers become more reliant on complex investment strategies, external partnerships and affiliated businesses.