De Nederlandsche Bank (DNB) has issued a warning regarding the growing exposure of Dutch institutional investors to private credit, highlighting a divergence in risk appetite between the insurance and pension fund sectors.
The Dutch central bank noted that while domestic pension funds have maintained limited exposure to the asset class, insurance companies have significantly increased their allocations in recent years.
DNB expects this trend to continue, with insurers likely to further expand their positions in private debt instruments.
This shift creates a concentration risk within the Dutch financial system.
The central bank stated that the anticipated growth in insurance sector exposure is a reason for vigilance, as it increases the systemic linkage to a market segment that has faced heightened scrutiny globally.
The warning aligns with broader international concerns about the private credit market.