Thu, Feb 27, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

U.S. insurers pull back from hedge fund investments third consecutive year

Friday, July 12, 2019

Laxman Pai, Opalesque Asia:

For a third consecutive year, the U.S. insurance industry as a whole pulled back from hedge fund investments, by roughly $2bn in 2018 to $14.4bn.

The the life/annuity segment reporting a year-over-year reduction of investments in hedge funds by more than 18%, making it the largest among the major industry segments to pull back.

According to an AM Best special report, the life/annuity segment cut its hedge fund holdings to $5.8bn in 2018 from $7.0bn in the previous year, and from $14.2bn in 2015.

The property/casualty segment also shrank its hedge fund investments for a third year, pulling back 7.6% to $8.1bn in 2018 from $8.8bn in 2017, said the new Best's Special Report, titled, "Life Insurers Continue to Reduce Hedge Fund Investments".

The property/casualty segment also shrank its hedge fund investments for a third year, pulling back 7.6% to $8.1bn in 2018 from $8.8bn in 2017. The health segment's holdings remained steady, at approximately $600m.

The decline in hedge funds holdings is due to strategic investment decisions rather than any nuanced reclassification. The pullback has been widespread, as more than one and a half times the number of companies decreased holdings than increased.

On a gross basis, companies that reduced their holdings did so by almost $2.7bn, while those that increased did so by just $673m.

Hedge funds held predominantly by larger organizations

Companies in the largest f......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Are all ESG Indexes as green as you want them to be?[more]

    From Beyond Investing: When Laurence Fink, chief executive of BlackRock, with nearly US$7 trillion under management, vows to put sustainability at the core of the firm's new investment approach, markets and investors sit up and liste

  2. Legal: Philip Falcone sued over alleged $65.8m default, Warhol painting[more]

    From Bloomberg: Former Harbinger Capital hedge fund manager Philip Falcone was accused in a New York lawsuit of defaulting on $65.8 million in loans and violating the terms of lending agreements by selling two paintings used as collateral, including one by Andy Warhol. Melody Business Finance LL

  3. U.S.: Second round of layoffs to hit TIAA's shuttered OCIO business this week, Capital buffers edged lower at systemic US banks in 2019[more]

    Second round of layoffs to hit TIAA's shuttered OCIO business this week From Institutional Investor: A second round of layoffs in TIAA's outsourced chief investment officer business is slated to take place this week, according to one former staffer. TIAA announced in November that it wa

  4. US-based micro venture capital funds raise a record amount of capital in 2019[more]

    Laxman Pai, Opalesque Asia: US-based micro venture capital funds (sized at $100mn or less) had another record-breaking year in 2019, said a report. Managers of micro funds surpassed the $8.3bn raised in 2018 with $8.4bn secured through 282 fund closures, according to the report by Preqin and t

  5. Deloitte: ESG-mandated assets on pace to account for 50% of all professionally managed assets by 2025[more]

    Bailey McCann, Opalesque New York: The US has often lagged behind other jurisdictions in terms of its appetite for ESG investments, but that may be changing. A new report from Deloitte suggests that the number of ESG-mandated assets in the United States could grow almost three times as fast as no