Life companies are planning to expand their lending products in 2025

Keep an eye out for more life company lending this year, as many lenders plan to surpass last year’s total origination numbers. Life companies will try to capture more business by expanding their boxes. Watch for them to be more flexible in the type of retail properties they will consider, moving away from the traditional grocery-anchored centers. There will be a push toward more construction-to-perm and bridge loans as a way to grab yield. Anticipate life companies starting to compete on pricing and increasing leverage. Also, count on more flexible prepayment options. Look for sensitivity around higher insurance costs. The focus will be on strong experienced sponsors.