Insurers are poised to pump hundreds of billions of dollars into private assets over the next two years as they seek to overcome the highest inflation in four decades and heightened recession risk, according to BlackRock.
“Their resolve to continue investing and growing their allocations to private assets has not changed” even as yields rise on more traditional fixed-income investments, Hatami said ahead of the publication of BlackRock’s survey of 370 senior insurance industry executives representing companies with $28 trillion in assets under management. “It’s a very meaningful allocation, and some of the largest clients are actually the most aggressive about this.”
According to the survey, 87% of insurers plan to increase allocations to private investments over the next two years, which would represent a 3% average increase versus their current allocations. Hatami said the increase will probably amount to “hundreds of billions” in additional money.
Read more: BNN Bloomberg
