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Laxman Pai, Opalesque Asia: An overwhelming majority of global insurers plan to increase allocations to private markets, revealed a survey.
According to a recent global insurance survey conducted by BlackRock, 91% of respondents plan to increase their investments in private markets within the next two years.
BlackRock said it polled 410 insurance investors across 32 markets with $27trillion in assets under management.
The trend is even stronger in Asia Pacific and North America, where 96% of respondents said they planned to increase exposure.
In private markets, insurers report they are looking to increase allocations to private debt across multiple categories, including opportunistic private debt (41%), private placements (40%), direct lending (39%), and infrastructure debt (34%).
As the scope of private debt has expanded to encompass a wider array of lending opportunities, BlackRock's report indicates this asset class can support insurance investment objectives for those needing long-term assets to support long-term liabilities, as well as increasing investment income through illiquidity rather than other investment characteristics.
In addition, over half of the insurers (52%) reported they will increase allocations to multi-alternative investments for greater flexibility and customization.
Within public markets, 42% of those surveyed planned to increase allocations to government and agency bonds. Inflation-linked bonds are also a priority, with 3...................... To view our full article Click here
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