Global Insurers to Increase SRT Transactions by 50% in 2026

Industry
โดย Money & Banking·GB·Read original
Summary · why it matters

Global insurers and reinsurers are set to increase their investment in credit risk transfer (SRT) transactions by approximately 50% in 2026, as banks accelerate the use of such tools to reduce risk and unlock capital. A survey by the International Association of Credit Portfolio Managers (IACPM), which polled 14 insurers, found that the highest growth will come from corporate loans and asset-backed loans, followed by residential mortgages. Most SRT transactions are funded SRT, but investors like insurers typically participate through unfunded SRT, which does not require upfront cash. However, the Bank of England (BOE) has warned that unfunded SRT could increase risk during market stress. IACPM data shows that the number of unfunded protections increased to 96 transactions in 2025 from 78 the previous year. Insurers provided SRT tranche protection worth approximately 4.7 billion euros, or 5.5 billion dollars, and as of the end of 2025, the total outstanding protection amounted to 10.9 billion euros, linked to a total loan portfolio of 366 billion euros. Major banks using this tool include BNP Paribas, Mitsubishi UFJ Financial Group (MUFG), and Erste Group Bank, with Erste using SRT to unlock capital to acquire Santander Bank Polska.

Impact on stocks 4

Financials▲ · 3 stocks
BNP Paribas SA
BNP
▲ PositiveCapitalrelevance

BNP Paribas is a major user of SRT, which helps reduce risk and unlock capital, positively impacting its capital management.

Santander Bank Polska SA
0DVR
▲ PositiveCapitalrelevance

Erste's SRT unlocks capital to acquire Santander Bank Polska, indicating a positive valuation event for the target.

Materials▲ · 1 stocks
Erste Group Bank AG
EBO
▲ PositiveCapitalrelevance

Erste uses SRT to unlock capital for the acquisition, directly benefiting its capital position.

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