BX · 10-Q · 2026Q3 · Full report

Credit Insurance Segment Performance

Blackstone Inc. · 2026-11-06 · Importance 48 · Surprise 40 · In source text

Credit & Insurance Segment Distributable Earnings increased 4% year over year to $433.0 million in the third quarter of 2026, as Net Realizations rose $21.0 million and partly offset a $4.2 million decrease in Fee Related Earnings. Nine-month Segment Distributable Earnings declined 10% to $1.179 billion, as Net Realizations fell $156.4 million, partly offset by a $20.3 million increase in Fee Related Earnings. Nine-month Management and Advisory Fees, Net increased 13% to $1.606 billion, including a $116.8 million increase in Base Management Fees from private corporate credit AUM and a $76.0 million increase in transaction and advisory fees from infrastructure and asset-based credit capital-markets advisory revenues. Nine-month Fee Related Performance Revenues declined 17% to $488.1 million, primarily due to lower BXSL revenues; Other Operating Expenses increased 13% to $359.3 million, primarily from occupancy and technology costs.

Key facts

• Blackstone’s Credit & Insurance segment had a $490.3 million increase in third-quarter unrealized Investment Income, primarily due to higher unrealized appreciation of Corebridge common stock. source
• Third-quarter 2026 Incentive Fees in Blackstone’s Credit & Insurance segment decreased $39.2 million, primarily attributable to BCRED and BXSL. source
• Credit & Insurance segment income decreased $170.2 million, primarily because Blackstone sold Bistro, its internally developed portfolio visualization software platform, in the first quarter of 2025. source
• Blackstone’s Credit & Insurance segment had a $27.0 million increase in third-quarter realized Investment Income, primarily from higher realized Performance Revenues in energy funds within infrastructure and asset based credit strategies. source
• At September 30, 2026, Credit & Insurance AUM increased $10.7 billion to $480.0 billion from $469.3 billion at June 30, 2026, driven by $35.8 billion of inflows partly offset by $15.4 billion of realizations, $9.1 billion of outflows and $554.6 million of market depreciation. source
• Credit & Insurance Segment Distributable Earnings were $433.0 million in Q3 2026, up $16.8 million from $416.2 million in Q3 2025. source
• Blackstone's non-investment-grade private credit strategies generated healthy returns in Q3 2026, with stable underlying credit performance across most holdings and steady interest income partly offset by markdowns in select underperforming credits. source
• Blackstone expected direct-lending defaults to continue rising from a historically low level; its Credit & Insurance funds' holdings are predominantly senior-secured credit with significant equity subordination from institutional borrowers. source

Impact estimates