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Private-Credit Insurers Gird for Legal Turmoil

Wall Street Journal Markets •
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Insurers covering private-credit firms brace for a surge in lawsuits and regulatory actions targeting valuation practices. Double-digit premium hikes are emerging as risks, with some carriers anticipating increases of up to 10% or more year-over-year. Marsh reported a 3% jump in directors-and-officers policy premiums for private-credit and equity clients in Q1, contrasting with flat rates for public firms. Legal risks are intensifying as redemption requests spike amid investor fears over opaque loan valuations, particularly in tech-heavy portfolios vulnerable to AI disruption.