# Insurers Double Private Credit Fund Investments

> Insurance firms nearly doubled private credit fund investments to boost returns and diversify portfolios.
- Title: Insurers Double Private Credit Fund Investments | Shortify
- Summary: Insurance firms nearly doubled private credit fund investments to boost returns and diversify portfolios. Insurance companies increased private credit fund…
- Keywords: insurers, private credit funds, bajaj life, sbi life insurance, irdai, aif, Double, Private, Credit, Fund, Investments, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/insure/insurers-nearly-double-private-credit-fund-investments/articleshow/135099194.cms
- Author: Shilpy Sinha
- Published: 2026-10-21T18:41:00+00:00
- Read time: 1 min
- Topics: insurers, private credit funds, bajaj life, sbi life insurance, irdai, aif
## Insurance companies boost private credit funds
Insurance firms nearly doubled private credit fund investments over two years to diversify portfolios and improve returns for policyholders.
## Bajaj Life and General increase allocations
Bajaj Life and Bajaj General Insurance raised private credit fund commitments from Rs 200 crore to Rs 650 crore in two years.
## CIOs highlight credit AIF benefits
CIOs say credit AIFs offer predictable returns and regular income distributions for diversified investment strategies.
## Industry seeks 5% investment cap
Insurers want to raise the 3% shareholder fund investment cap for AIFs to 5% to enhance portfolio returns.
## IRDAI expands investment options
IRDAI allowed insurers to invest in equity and debt instruments of private limited companies and infrastructure projects.
## Private credit funds grow with insurers
Private credit funds have attracted increased interest from life and general insurance companies seeking diversified returns.
## Key takeaway

Insurance companies increased private credit fund investments from Rs 200 crore to Rs 650 crore over two years, seeking better returns and portfolio diversification.