Insurance investment managers are increasingly looking to boost their private assets allocations amid an anticipated increase in capital to invest in their organizations in the year ahead. These are the findings of a new global study from Ortec Finance, a global provider of risk and return management solutions for insurers and other financial services companies, which took the pulse of insurance investment managers responsible for $10.48 trillion assets under management.
When asked about the biggest reasons to invest in private assets, respondents flagged inflation protection as the most important, followed by diversification, cash-flow matching, and returns and illiquidity premiums.
Two-thirds of investment managers believe private debt will see the biggest percentage increase in allocation, followed by private equity and real estate. In addition, 41 percent of insurance investment managers and investment managers working for insurers believe infrastructure equity wil