Insurance Companies Expand Bridge Lending Across Markets
Insurance companies are undergoing a notable transformation in their approach to commercial real estate bridge lending. It’s no surprise that insurance companies are moving beyond permanent loans for stabilized assets in primary urban cores. These lender types are more and more actively targeting transitional properties in secondary and even tertiary markets. This strategic shift reflects evolving market dynamics and a desire to diversify portfolios by pursuing higher-yield opportunities.
Recent data demonstrates that life companies have increased their share of bridge lending activity, with allocations rising steadily over the past two years. Based on industry research from the Mortgage Bankers Association and Moody’s, life insurance companies meaningfully increased their commercial real estate lending activity in 2025, expanding into shorter term and transitional loan strategies as banks pulled back. This growth, estimated in the 25–40% range year over year across CRE originations, highlights the expanding role of life companies as reliable capital providers for transitional assets. ¹
These lenders are offering flexible terms, higher leverage, and aggressive underwriting standards, features traditionally associated with debt funds.
This expansion is not confined to major cities. Insurance companies are actively lending on transitional assets including retail, office, multifamily, and industrial in secondary and tertiary markets, as well as smaller regional hubs. Their appetite has broadened to include partially vacant, value-add, or repositioning opportunities, driven by improving fundamentals and local revitalization initiatives.
A couple examples where this scenario has come to fruition for Slatt Capital include the following:
Slatt Capital placed a $16,000,000 loan with a correspondent life insurance company to refinance a 97-unit multifamily property in the Tenderloin district of San Francisco.
The borrower came to Slatt Capital looking to exit a high-cost bridge loan while the property was still in lease-up, which was a challenging window for many lenders. Slatt worked with this Lifeco to structure a cash-neutral refinance, delivering highly competitive terms.
Slatt Capital placed a $15,800,000 loan with a correspondent life insurance company to refinance a 128K SF retail center in Arizona. The Lifeco offered a much more competitive interest rate than the existing debt fund, as well as additional “Good News” money as the sponsor continued executing their lease-up strategy.
The Bottom Line
Borrowers in all markets should recognize that life companies are now a major player in a wider value range of bridge lending, sometimes as low as $2 million, consistently providing more competitive terms and flexible structures than ever before.
Some tips as you consider your options:
- Consult with a mortgage advisor who has established relationships with insurance companies and understands their current lending preferences.
- Include insurance companies in your pool of potential lenders when seeking bridge financing, regardless of asset type or market size.
- Prepare detailed property and borrower information to meet the rigorous but flexible underwriting standards life companies are now applying.
- Evaluate loan proposals from insurance companies alongside those from banks and debt funds to compare leverage, structure, and pricing.
- Stay informed about evolving market trends and lender appetites, especially as insurance companies broaden their reach into secondary and tertiary markets.
The key takeaway for borrowers is clear: insurance companies are increasingly eager to compete for bridge loan opportunities across asset types and geographies. Including insurance companies in your lender mix can provide significant advantage. Make sure your advisor is positioned to do so.