diff --git a/persistence/sql/identity/persister_identity.go b/persistence/sql/identity/persister_identity.go
index afa525184f03..7649f6aca3bd 100644
--- a/persistence/sql/identity/persister_identity.go
+++ b/persistence/sql/identity/persister_identity.go
@@ -584,7 +584,7 @@ func (p *IdentityPersister) CreateIdentities(ctx context.Context, identities ...
 		}
 	}
 
-	if err := p.Transaction(ctx, func(ctx context.Context, tx *pop.Connection) error {
+	return p.Transaction(ctx, func(ctx context.Context, tx *pop.Connection) error {
 		conn := &batch.TracerConnection{
 			Tracer:     p.r.Tracer(ctx),
 			Connection: tx,
@@ -645,10 +645,14 @@ func (p *IdentityPersister) CreateIdentities(ctx context.Context, identities ...
 		if len(failedIdentityIDs) > 0 {
 			partialErr := &identity.CreateIdentitiesError{}
 			failedIDs := make([]uuid.UUID, 0, len(failedIdentityIDs))
+			succeededIDs := make([]uuid.UUID, 0, len(identities))
+
 			for _, ident := range identities {
 				if _, ok := failedIdentityIDs[ident.ID]; ok {
 					partialErr.AddFailedIdentity(ident, sqlcon.ErrUniqueViolation)
 					failedIDs = append(failedIDs, ident.ID)
+				} else {
+					succeededIDs = append(succeededIDs, ident.ID)
 				}
 			}
 			// Manually roll back by deleting the identities that were inserted before the
@@ -656,21 +660,22 @@ func (p *IdentityPersister) CreateIdentities(ctx context.Context, identities ...
 			if err := p.DeleteIdentities(ctx, failedIDs); err != nil {
 				return sqlcon.HandleError(err)
 			}
-			// Wrap the partial error with the first error that occurred, so that the caller
-			// can continue to handle the error either as a partial error or a full error.
+
+			// Partial success: report succeeded identities as created.
+			for _, identID := range succeededIDs {
+				span.AddEvent(events.NewIdentityCreated(ctx, identID))
+			}
+
 			return partialErr
+		} else {
+			// No failures: report all identities as created.
+			for _, ident := range identities {
+				span.AddEvent(events.NewIdentityCreated(ctx, ident.ID))
+			}
 		}
 
 		return nil
-	}); err != nil {
-		return err
-	}
-
-	for _, ident := range identities {
-		span.AddEvent(events.NewIdentityCreated(ctx, ident.ID))
-	}
-
-	return nil
+	})
 }
 
 func (p *IdentityPersister) HydrateIdentityAssociations(ctx context.Context, i *identity.Identity, expand identity.Expandables) (err error) {