Daiichi Life Group Inc., Japan’s second-largest life insurer by assets, is tightening its selection criteria for private credit managers. This move follows several recent high-profile defaults observed in overseas markets, signaling a clear shift toward enhanced risk management within their alternative investment portfolio.

Masashi Kataoka, who heads the firm’s alternative investment unit in Tokyo, confirmed the insurer will scrutinize potential managers more intensely. Evaluation will focus specifically on the consistency of their performance metrics and the stability of their assets under management, pushing back against managers with volatile track records.

Furthermore, the insurer plans to check for evidence of undue investment sector bias among prospective partners. For institutional investors managing vast pools of capital, increased due diligence in opaque markets like private credit directly impacts long-term solvency assumptions and return profiles.

This internal policy adjustment reflects a broader caution permeating global insurance investment desks regarding complex, illiquid credit strategies. Investors relying on these insurers must now anticipate more granular scrutiny of manager mandates across the industry.