Atlantic Coast Life faces regulatory challenge over private credit exposure
US Regulators are seeking greater control over Atlantic Coast Life Insurance and its reinsurer Southern Atlantic Re, alleging that the insurer’s PE ownership exposed policyholder funds to excessive amounts of illiquid private credit and other alternative investments, according to a report by Forbes.
Federal regulators are demanding greater oversight over Atlantic Coast Life Insurance and its reinsurer, Southern Atlantic Re. The South Carolina regulator claims the insurer’s private ownership has exposed policyholder funds to excessive amounts of illiquid private credit and alternative investments. The insurer’s parent company, A-CAP, disputes these allegations and maintains that policyholder claims are being met.
The case illustrates growing concerns about the merging of private equity, private credit, and insurance sectors as asset managers increasingly use private-market strategies within insurance companies handling long-term retirement savings.
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