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Laxman Pai, Opalesque Asia: Insurance assets under management declined in 2022, but firms sought greater exposure to alternative assets, said a study.
Third-party insurance investment management assets under management totaled $3.2 trillion on a global basis as of year-end 2022, a modest decline from $3.4 trillion a year earlier, according to Clearwater Analytics' 10th annual Insurance Investment Outsourcing Report.
Despite less AUM, growth in the use of outside managers continued as the reported total client count across all managers grew 7% to 5,800.
According to the study, fixed income continues to be the dominant allocation among the insurance sector, representing over 70% of investments reported by managers.
Many of the participating managers offer full-service capabilities managing this 'core' strategy along with 'solutions' capabilities that help insurers devise overall asset allocation strategies in the context of the unique accounting, regulation, and rating agency matters of insurers.
Most of the new participating managers bring private asset class capabilities, a trend we have seen in recent years as insurers expand their asset allocation.
While insurer absolute allocations to privates are modest, the percent increases in reported AUM of certain strategies were significant: PE/VC up 79%, structured private debt up 46%, and corporate middle market debt up 24%.
"Insurer investment programs have grown in sophistication sinc...................... To view our full article Click here
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