In recent years, insurers have been increasingly turning to private credit to enhance portfolio returns and diversify risk. But these bespoke, often-illiquid instruments bring unique operational challenges. Before committing capital, insurers must ensure their systems and service partners can support every step, from structuring deals to stress‑testing capital models. Below are four key operational considerations and how SS&C’s Precision LM + Singularity platform, backed by our private‑credit experts, can position you for success.
- Flexible Deal Capture & Event Processing
Private credit agreements often include complex payment waterfalls, custom covenants, amortization schedules and optional redemption features. A rigid system, or a provider that treats every deal like a plain‑vanilla bond, can’t capture these nuances accurately.
Choose the Right Features for Success
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- Configurable Deal Templates
Use Precision LM’s highly flexible deal‑modeling engine to define step‑up coupons, PIK interest, ratchets, prepayment penalties and more, with no scripting required.
- Automated Event Engine
Singularity automatically ingests these bespoke terms and events to drive insurance accounting updates for interest accruals, rate and cash flow schedule changes, default notices, restructurings and final paydowns, all with full audit trails.
- Specialized Onboarding & Ongoing Support
SS&C’s private credit team works directly with your deal desks to map legal documents into the system, set up exception alerts and maintain covenant thresholds so you never miss a trigger or payment event.
- Advanced Valuation & Accounting Flexibility
Private loans lack market‐quoted prices. You need robust models like discounted cash flow, credit spreads and broker quotes, while also satisfying GAAP, STAT and tax accounting and reporting requirements.
Essential Systems and Services
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- Multi‑Basis Accounting Engine
Singularity houses GAAP, STAT and tax ledgers side‑by‑side. Precision LM feeds detailed loan cash‑flows and model outputs directly into Singularity’s journal‑entry generator for seamless, multi‑basis accounting and posting.
- Valuation Model Library
Precision LM offers built‑in DCF workflows, credit‑spread overlays and proxy benchmarking, with manual‑override gates and full audit logging.
- Expert Valuation & Impairment Support
SS&C’s credit‑quant team reviews assumptions, performs independent valuations and supports ASC 326/IFRS 9 impairment assessments, reducing model risk and accelerating audit sign‑off.
- Robust Cash‑Flow Modeling & Liquidity Monitoring
Illiquidity is inherent in private credit. Insurers need forward‑looking cash projections and stress scenarios to meet policyholder obligations and regulatory liquidity tests.
What You Need in a Solution
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- Dynamic Cash‑Flow Engine
Precision LM models scheduled and unscheduled amortizations, prepayments and covenant‑driven restructurings, then pushes aggregated cash‑flow schedules into Singularity’s real‑time dashboards.
- Scenario Analysis & Stress Testing
Run “what‑if” shocks, like rising rates, increased defaults or delayed draws, and instantly see liquidity gaps and funding‑need timelines.
- Liquidity Advisory & Reporting
SS&C’s liquidity experts overlay historical payment behavior and forward‑looking impairment views, delivering custom stress‑test reports for your investment committee and regulators.
- Integrated Risk & Capital Model Implications
Private credit’s credit/default risk and concentration exposures feed directly into RBC, ORSA and economic‑capital frameworks. Disparate tools create manual reconciliation headaches and governance risks.
Key Features to Look For
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- Exposure Aggregation & Loss Modeling
PLM collects, processes and consolidates commitments, unfunded amounts and expected recoveries, and feeds them into the respective Singularity accounting and risk engines to produce NAIC Schedule B and internal‑capital outputs.
- Real‑Time Risk Dashboards
View credit migration, loss‑given‑default curves and concentration heat maps in Precision LM’s secure, online platform.
- Capital‑Model Calibration & Governance
SS&C’s risk teams can help configure and validate parameter assumptions, update model projections and deliver stress-test, shock and what-if scenario and ALM analysis for internal and regulatory reporting use.
Why SS&C’s Precision LM + Singularity Is Unique
- Best‑in‑Class Private‑Credit Engine: Precision LM was built from day one for bespoke loan terms, complex cash‑flows and credit analytics.
- Enterprise‑Scale Investment Accounting Platform: Singularity brings cloud‑native, multi‑basis accounting; real‑time dashboards; reconciliation; compliance and regulatory reporting under one roof.
- Deep Bench of Experts: Access to dedicated private‑credit specialists in valuation, risk, accounting and reporting, comprising your extended team through every deal cycle.
- Tight Integration & 24 × 7 Support: Continuous data sync, seamless user access from any anywhere and any device, proactive monitoring and onshore service teams ensure nothing falls through the cracks.
Final Thoughts
Private credit can be a powerful return enhancer, but only if your operations are built for its complexity. By pairing Precision LM’s private‑loan expertise with Singularity’s end‑to‑end insurance investment accounting platform, and tapping SS&C’s seasoned credit‑service professionals, insurers gain the agility, controls and transparency needed to turn bespoke deal terms into competitive advantage.
Ready to elevate your private‑credit operations? Contact us today to see how Precision LM + Singularity can power your next credit deal—end‑to‑end.
