New York Life Expands $750M Consumer Lending Investment with Affirm

New York Life Insurance is expanding its partnership with Affirm, committing to purchase up to $750 million in installment loans through 2026.

This agreement provides Affirm with off-balance-sheet funding to support approximately $1.75 billion in annual loan volume, extending a relationship that started in 2023. New York Life has invested nearly $2 billion into Affirm's collateral pools so far, reflecting a broader trend of insurers and private credit investors increasing exposure to consumer finance assets amid rising interest rates.

Affirm’s strategy aligns with similar funding partnerships across the buy-now-pay-later sector, including agreements involving Liberty Mutual Investments, PGIM, Sixth Street Partners, and others like Klarna and PayPal. Affirm has financed over $100 billion in transactions, with a repeat borrower rate exceeding 90%, contributing to strong credit performance. This partnership occurs as consumer lenders face mixed economic conditions, with steady spending and improving delinquencies tempered by investor caution following some high-profile credit sector bankruptcies.