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Insurers increase leverage on commercial real estate loans

Loan-to-value ratios on CRE lending rose to 65.9% in the first half of 2026, and insurance lenders posted the largest LTV increase among investor types.

Reported · Written up by our desk · Industry

Insurance companies have expanded lending to commercial real estate while taking on riskier loan terms, increasing their leverage faster than other types of CRE investors, according to Bisnow.

Bisnow reports insurers are also deepening exposure to sectors such as data centers, which can make them more sensitive to valuation swings as capital costs continue to rise.

Across lenders overall, loan-to-value ratios rose to 65.9% in the first half of 2026 from 64.2% in the same period a year earlier, with investor-driven lenders reaching 69.5%.

Bisnow says insurance lenders showed the largest jump in LTV among the groups, raising concerns about potential problems for the market.

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