Affirm is deepening its partnership with New York Life Insurance, with a new deal that allows New York Life to purchase up to $750 million in Affirm's installment loans through 2026. This agreement provides Affirm with off-balance-sheet funding to support around $1.75 billion in annual loan volume. The relationship between the two began in 2023, when New York Life started investing in Affirm's asset-backed securities, contributing nearly $2 billion to Affirm's collateral pools so far. This partnership reflects a larger trend where traditional financial companies are increasing their involvement in fintech, particularly in consumer lending. Insurers and private-credit investors are drawn to these assets as higher interest rates enhance their appeal. Affirm has previously secured funding lines from other major players like Liberty Mutual Investments and PGIM. Meanwhile, competitors like Klarna and PayPal are also pursuing similar arrangements to boost their lending capabilities. Affirm has financed over $100 billion in transactions, with more than 90% of its borrowers being repeat customers, which speaks to its strong credit performance. Despite a mixed economic environment—where consumer spending remains solid but investor caution persists due to recent bankruptcies in subprime auto and consumer credit—Affirm's strategy appears to position it well for continued growth in the consumer finance space.