Global insurers plan to ramp up private equity investments

MANHATTAN, Apr 04 (Reuters): Insurers want to put more money into private equity this year as they contend with rising inflation and its effects on monetary policy, a survey by Goldman Sachs Asset Management showed on Monday.
More than 40 per cent of insurers plan to increase their investments in private equity in the next 12 months to boost returns, according to the survey of 328 executives overseeing more than $13 trillion in insurance assets.
"Against a complex macroeconomic and geo-political environment, demand for yield remains high, and we expect to see insurers continue to build positions in private asset classes as well as inflation hedges," said Michael Siegel, Global Head of insurance asset management.
Middle market corporate loans, infrastructure debt, real estate equity, infrastructure equity and United States investment grade private placements were other favored asset class for insurers seeking to increase investment returns, the survey said.
The survey said insurers now see rising inflation and tighter monetary policy as the largest threats to their portfolios.