Marc Rowan warns of downturn risk and attacks rival insurers' practices
Updated
Updated · CNBC · May 6
Marc Rowan warns of downturn risk and attacks rival insurers' practices
10 articles · Updated · CNBC · May 6
The Apollo chief said shock odds had risen to 30%-35%, even as the firm hit $1 trillion in assets and held about $40 billion of insurance cash.
Rowan said Apollo had upgraded credit quality and cut riskier software exposure, while warning geopolitical shifts, trade and labour restrictions, and AI disruption could fuel inflation and volatility.
He said some insurers use Cayman structures, complex collateralised loans and aggressive credit assumptions that could spread contagion and force regulatory or central bank intervention despite strong corporate and consumer balance sheets.
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The Looming Crisis: Apollo Warns of Multiple Insurer Bankruptcies and Private Credit Contagion Risks
Overview
In April 2026, Apollo CEO Marc Rowan warned of a 30-35% chance of unexpected market shocks driven by geopolitical tensions, government policies embedding inflation, and rapid AI advancements threatening job stability. In response, Apollo is strengthening its credit portfolio and maintaining a $15 billion cash buffer to protect against volatility. Rowan sharply criticized rival insurers using Cayman Islands structures for regulatory arbitrage and weak risk management, predicting multiple bankruptcies and systemic risks similar to the 2023 SVB collapse. This criticism, alongside warnings about ratings arbitrage in private credit, has spurred global regulatory actions to increase transparency and address contagion risks in the intertwined offshore insurance and private credit markets.