Understanding the Evolving Lifeco CRE Lending Landscape in 2025

The life insurance company (lifeco) segment of the commercial real estate finance (CREF) market in the United States accounts for approximately 15-20% of annual total loan originations. Lifecos place their assets in a variety of investments which include CREF. Each life company also has its own investment criteria and they all differ. The makeup of a lifeco investment portfolio can change based on a number of factors including the following: 

1. Relative value of the investment: Most lifecos choose a variety of investments in an effort to diversify their portfolio. Their demand to invest in commercial and multifamily loans can vary based on the yield that they can obtain on those loans compared to that of other comparable risk-based investments such as bonds.
2. Diversification: Lifecos always look at the percentage of their assets invested in commercial and multifamily loans compared to other investments. On average, life companies look to invest approximately 10% of their overall assets in commercial and multifamily loans. 
3. Third-party management: Many lifecos invest in commercial and multifamily loans on behalf of their own company and on behalf of others that want these investments but don’t have the resources to originate, close, and service the loans. 
4. Short-term vs. long-term products: Lifecos have demand to make longer term fixed-rate loans (5-20 years) and shorter-term fixed-rate loans (less than 5 years) based on the type of insurance products that they sell. If they sell long-term products, they tend to focus on longer term loans, and vice versa. 
5. Ownership: The type of Lifeco owner can dictate the type of loans that they make. Lifecos can be owned by foreign and domestic entities. They also can be privately owned, publicly owned (stock), and mutually owned (owned by their policy holders). The type of ownership can ultimately dictate their risk profile and the types of loans that they may chose to make. 

The Importance of Enlisting a Strategic Intermediary 

In this evolving landscape, correspondent mortgage banking firms play a critical role, connecting borrowers with lifeco capital. With deep, long-standing relationships across dozens of lifeco lenders, firms like Slatt Capital: 

• Match borrowers with the right capital source based on asset type, geography, and loan structure. 

• Maintain exclusive correspondent relationships, providing access to off-market capital and customized loan programs. 

• Offer market intelligence and execution certainty—especially valuable in today’s volatile rate environment. 

Staying Ahead in a Competitive Market 

In a CRE market marked by tightening credit and rising capital costs, staying informed on lifeco strategy shifts is more important than ever. Brokers and borrowers who understand the nuances of each lender’s appetite—whether from a domestic mutual, a foreign-owned insurer, or through a correspondent like Slatt—can unlock better terms and more reliable execution. 

As lifecos continue to evolve, the ability to navigate this complex and competitive ecosystem will be a key differentiator in 2025 and beyond.