Lee Harris

How insurance became the lifeblood of private credit Private capital’s insurance playbook has spread everywhere, raising concerns among those who pioneered the trade

Important stuff from @leeharris.ft.com on how the US life insurance industry loaded up on private credit
www.ft.com/content/b6be...

Nicolás Maduro ousting boosts demand for Latin America political risk cover [FREE TO READ] Insurers split on whether Donald Trump’s actions in Venezuela will increase or reduce investor risk

New: Political risk insurers are split over whether Trump’s ouster of Maduro makes Latin America riskier or safer for US investors as.ft.com/r/8a7fa593-b...

It might even be securities fraud

ICYMI: Berkshire Hathaway, Chubb and AIG are among a group of insurers that provided directors’ liability insurance to First Brands, the bankrupt car parts maker.

US mortgage lenders insure against artificial intelligence screening errors Insurers including Munich Re are backing cover for AI mistakes, offering the potential to cut capital requirements

Banks and credit unions are using AI to screen borrowers and buying insurance against errors made by the AI tools. Shifting risk to insurers such as David Einhorn's Greenlight Re is helping them trim their regulatory capital requirements & loan more:
www.ft.com/content/9317...

"My 'we do very, very normal due diligence' shirt has people asking a lot of questions already answered by my shirt."

The new crop of rating agencies behind the private credit boom [FREE TO READ] Regulators and bankers are sounding the alarm about an explosion in privately-rated securities

on.ft.com/4hP9FWB

Tfw your credit ratings are very normal

Private jet owners rent out aircraft engines amid supply crunch [FREE TO READ] Some travellers prefer to borrow engines to use with their own customised jets

I’m quite proud of this one, it feels like the concentrated essence of a wealth story —> on.ft.com/4nJf9DW Private jet owners rent out aircraft engines amid supply crunch

The insurance industry has stepped up efforts to limit future payouts over for petrochemical disasters, following a record judgment by Sri Lanka’s supreme court over the world’s biggest recorded plastic spill. on.ft.com/4n49rvU

Insurers prepare for wave of First Brands claims Allianz, Coface and AIG among groups to have written credit insurance policies linked to bankrupt car parts maker

Credit insurance is back in the spotlight – my personal fomo. scoop from @leeharris.ft.com @bondhack.ft.com www.ft.com/content/de37...

Home insurers’ latest trick: stealth increasing your deductible [FREE TO READ] Millions of Americans are being hit by tighter policy terms from groups including Progressive, State Farm and Travelers

“It’s like when they took away free bags on airlines — it took a number of years for customers to accept it”. How US home insurers have changed the fine print on policies, paring back their losses & boosting a recent jump in profits on.ft.com/4872W7M

US lifeline for Argentina relies on IMF backstop, say analysts Trump administration’s $20bn swap line threatens to load even more debt on to struggling South American country

Speaking of throwing good money after bad, here's one I did earlier on why the US backstop for Argentina is really an IMF backstop for Argentina, when 46% of total IMF GRA credit outstanding is already, well, Argentina. www.ft.com/content/75d6...

49. textbook stuff here, nice work everyone

@leeharris.ft.com on the weird and wonderful world of cyber insurance. as usual, even if you have it, you may not have it
www.ft.com/content/84da...

Korean companies admit cutting corners on US visas but say they have little choice US is ‘two-faced’ in pushing Korea to complete multibillion dollar projects on time but refusing to facilitate necessary work documents

“South Korean companies have routinely used unsuitable visas for workers sent to the US to build multibillion-dollar advanced manufacturing sites, according to Seoul-based executives and industry groups,“ as the US failed to facilitate short-term work visas despite a FTA. www.ft.com/content/c677...

The niche debt tool at the heart of Apollo’s private credit machine How Apollo’s in-house insurer has raised capital to fund the group’s lending, without turning to policyholders

“It’s a way for insurers to monetise good credit ratings.” 👀 on.ft.com/46CguXE

Thanks ‪@matt-levine.bsky.social‬ for featuring the story in Money Stuff :)

Munich Re also criticized cat bond investors for being super selective, only taking on the most statistically improbable risks. By contrast, when it does this with its own clients, it’s to ensure prices stay high enough to earn a healthy profit, Munich Re told me:

The world’s biggest reinsurer has warned that the growth of private investment in cat bonds could raise volatility in insurance markets, if hedge funds + other private investors suddenly pulled out. My story: on.ft.com/47piXpb

Retail investors fight for right to bet on natural disasters Asset managers push back against an EU attempt to curb access to fast-growing market for catastrophe bonds

On the fight for easier access to CATASTROPHE BONDS!

It's 2025: Bet on natural disasters for your retirement security.

From @leeharris.ft.com @emdunks.bsky.social.
www.ft.com/content/82c7...

the details about the Wong Kar Wai /Christopher Doyle inspo and the naturalistic sound editing are so fascinating

Apollo’s insurer points finger at rivals over potential conflicts [FREE TO READ] US life insurers’ related party assets have come under scrutiny as private equity has piled into the sector

Apollo has hit back against criticism of the close ties between its asset management arm and in-house insurer in an investor filing that instead points the finger at its chief rivals. Story: on.ft.com/3Uuo8g1

Aon sued for alleged fraud linked to credit insurance for start-ups Lawsuit representing AI business Vesttoo sheds light on push by insurance broker into growing market

Credit insurance once meant a policy that would pay out if a banana shipment didn’t show up. It has come to mean whizzy financial engineering, from shifting capital off banks' balance sheets to helping startups raise cash. New lawsuit sheds some light:
www.ft.com/content/8891...

Interesting new study from NY Fed compares how lenders treat unmapped flood risk (due to FEMA’s outdated maps). Big banks are lending less and charging more in risky areas. Non-banks and local banks are still originating the loans but then securitizing or moving them off their balance sheet

Brookfield strikes £2.4bn deal to buy London-listed insurer Just Group Chancellor Rachel Reeves welcomes deal amid concerns over UK stock market departures

Brookfield's way in to the UK retirement market: start a new insurer AND buy one

Also, after Apollo's Athora/PIC, the North American private capital groups are really in town... to invest your pension

@leeharris.ft.com reports
www.ft.com/content/f460...

Insurance veteran launches fund to combat asset managers chasing fees at insurers’ expense [FREE TO READ] Former American Equity Insurance Life boss Anant Bhalla launches private assets investment fund with different fee model

A senior industry figure has accused asset managers of chasing fees at insurers’ expense, as he launches a contrarian fund he says will do things differently: on.ft.com/44FFoop

Investors hitting ‘limit’ for insuring against UK floods, warns Flood Re chief [FREE TO READ] CEO of reinsurer says exposure to risks is now ‘worse’ than when the scheme started in 2016

Sat down with the new boss of Flood Re to discuss his concerns that the national flood reinsurer is not on track to wind down by its deadline — and why, despite recently issuing a catastrophe bond, he is pricing in stubbornly high reinsurance costs: on.ft.com/3IFcUmg

US liability insurance on verge of ‘breakdown’ from tide of claims Insurers say companies could struggle to obtain cover for harms to workers and consumers

“It won’t be a question of how much you’re willing to pay — the cover won’t be available"

Everest CEO Jim Williamson speaking to me at this year's FT Global Insurance Summit about a creaking US casualty insurance market

Important story from @leeharris.ft.com

www.ft.com/content/5ff1...

Burford Capital accuses Chubb of abusing market power in litigation funding spat [FREE TO READ] Head of biggest funder hits back after Chubb chief urged peers to cut ties with sector

“It would be a little bit like an insurance executive coming along and saying, ‘I don’t want any more development in my neighbourhood, so we’re going to not write any new construction or homeowners policies in my neighbourhood’”

on.ft.com/4jmZgAQ