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BlackRock Survey: Overwhelming Majority of Insurers Plan to Increase Allocations to Private Investments

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BlackRock's 13th annual Global Insurance Report reveals that 91% of insurers plan to increase investments in private assets over the next two years. The survey, covering 410 insurance investors across 32 markets, highlights key trends for 2024:

1. Increased focus on private markets, with 96% of APAC and North American insurers planning to boost allocations.
2. Clean energy infrastructure investments targeted by 60% of insurers for low-carbon transition objectives.
3. Emphasis on technology for private asset modeling (53%) and regulatory capital integration (51%).

Despite concerns about regulatory developments (68%) and geopolitical tensions (61%), 74% of insurers have no plans to change their current risk profiles. In public markets, 42% plan to increase allocations to government and agency bonds, while in private markets, there's growing interest in various forms of private debt.

Il 13° Rapporto Globale sulle Assicurazioni di BlackRock rivela che il 91% degli assicuratori prevede di aumentare gli investimenti in beni privati nei prossimi due anni. L'indagine, che ha coinvolto 410 investitori del settore assicurativo in 32 mercati, evidenzia le principali tendenze per il 2024:

1. Aumento dell'attenzione verso i mercati privati, con il 96% degli assicuratori della regione APAC e del Nord America che pianifica di aumentare le allocazioni.
2. Investimenti in infrastrutture per l'energia pulita mirati dal 60% degli assicuratori per obiettivi di transizione a basse emissioni di carbonio.
3. Enfasi sulla tecnologia per la modellizzazione degli asset privati (53%) e l'integrazione del capitale regolamentare (51%).

Nonostante le preoccupazioni riguardo agli sviluppi normativi (68%) e alle tensioni geopolitiche (61%), il 74% degli assicuratori non prevede di cambiare i propri profili di rischio attuali. Nei mercati pubblici, il 42% prevede di aumentare le allocazioni a obbligazioni sovrane e di agenzia, mentre nei mercati privati c'è un crescente interesse per varie forme di debito privato.

El 13° Informe Global de Seguros de BlackRock revela que el 91% de los aseguradores planea aumentar las inversiones en activos privados durante los próximos dos años. La encuesta, que abarcó a 410 inversores en seguros en 32 mercados, destaca las principales tendencias para 2024:

1. Aumento del enfoque en mercados privados, con el 96% de los aseguradores de APAC y América del Norte planeando aumentar las asignaciones.
2. Inversiones en infraestructura de energía limpia objetivo del 60% de los aseguradores para alcanzar objetivos de transición a bajas emisiones de carbono.
3. Énfasis en la tecnología para la modelización de activos privados (53%) y la integración del capital regulatorio (51%).

A pesar de las preocupaciones sobre los desarrollos regulatorios (68%) y las tensiones geopolíticas (61%), el 74% de los aseguradores no planea cambiar sus perfiles de riesgo actuales. En los mercados públicos, el 42% planea aumentar las asignaciones en bonos gubernamentales y de agencias, mientras que en los mercados privados hay un creciente interés en diversas formas de deuda privada.

블랙록의 제13회 글로벌 보험 보고서는 보험사의 91%가 향후 2년 동안 사모 자산에 대한 투자를 증가시킬 계획이라고 밝힙니다. 이 설문 조사는 32개 시장에서 410명의 보험 투자자를 대상으로 하며, 2024년 주요 트렌드를 강조합니다:

1. 사모 시장에 대한 집중 증가, APAC 및 북미의 보험사 중 96%가 자산 배분을 늘릴 계획입니다.
2. 청정 에너지 인프라 투자는 저탄소 전환 목표를 위해 보험사 60%가 목표하고 있습니다.
3. 기술에 대한 강조는 사모 자산 모델링(53%) 및 규제 자본 통합(51%)을 위한 것입니다.

규제 발전(68%) 및 지정학적 긴장(61%)에 대한 우려에도 불구하고, 보험사 74%는 현재의 위험 프로필을 변경할 계획이 없습니다. 공공 시장에서는 42%가 정부 및 에이전시 채권에 대한 할당을 증가시킬 계획이며, 사모 시장에서는 다양한 형태의 사모 채무에 대한 관심이 커지고 있습니다.

Le 13e Rapport mondial sur les assurances de BlackRock révèle que 91% des assureurs prévoient d'augmenter leurs investissements dans les actifs privés au cours des deux prochaines années. L'enquête, qui couvre 410 investisseurs en assurances dans 32 marchés, met en lumière les tendances clés pour 2024 :

1. Accent accru sur les marchés privés, avec 96% des assureurs de la région APAC et d'Amérique du Nord prévoyant d'augmenter leurs allocations.
2. Investissements dans les infrastructures d'énergie propre visés par 60% des assureurs pour des objectifs de transition à faible émission de carbone.
3. Accent sur la technologie pour la modélisation des actifs privés (53%) et l'intégration du capital réglementaire (51%).

Malgré les inquiétudes concernant les évolutions réglementaires (68%) et les tensions géopolitiques (61%), 74% des assureurs n'ont pas l'intention de modifier leurs profils de risque actuels. Sur les marchés publics, 42% prévoient d'augmenter les allocations aux obligations d'État et des agences, tandis que sur les marchés privés, l'intérêt pour diverses formes de dette privée est en hausse.

Der 13. jährliche Global Insurance Report von BlackRock zeigt, dass 91% der Versicherer planen, die Investitionen in private Vermögenswerte zu erhöhen in den nächsten zwei Jahren. Die Umfrage umfasste 410 Versicherungsinvestoren in 32 Märkten und hebt die wichtigsten Trends für 2024 hervor:

1. Erhöhter Fokus auf private Märkte, wobei 96% der Versicherer aus APAC und Nordamerika planen, ihre Allokationen zu steigern.
2. Investitionen in saubere Energieinfrastruktur, die von 60% der Versicherer für Ziele der kohlenstoffarmen Transition angestrebt werden.
3. Schwerpunkt auf Technologie für die Modellierung von Privatvermögen (53%) und die Integration regulatorischer Kapitalvorgaben (51%).

Trotz Bedenken hinsichtlich regulatorischer Entwicklungen (68%) und geopolitischer Spannungen (61%) haben 74% der Versicherer keine Pläne, ihre aktuellen Risikoprofile zu ändern. In den öffentlichen Märkten planen 42% eine Erhöhung der Allokationen in Staats- und Agentur-Anleihen, während im privaten Markt das Interesse an verschiedenen Formen von privater Schulden wächst.

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  • 91% of respondents intend to increase investments in private assets over the next two years
  • 60% of insurers targeting clean energy infrastructure investments for low-carbon transition objectives
  • Respondents see value in technology for key challenges of private asset modeling (53%) and regulatory capital integration (51%)

NEW YORK--(BUSINESS WIRE)-- Global insurers are focused on increased allocations to private markets, clean energy infrastructure and utilizing innovative technology in 2024, according to BlackRock’s 13th annual Global Insurance Report. For the third year running, BlackRock’s annual report shows a majority of insurers are planning increased investments in private markets, with 91% of all respondents saying they will do so within the next two years. This figure increases to 96% for APAC and 96% for North American insurers. The report tracks insights from 410 insurance investors surveyed across 32 markets, representing nearly $27 trillion USD in assets under management.

Mark Erickson, Global Head of BlackRock’s Financial Institutions Group, said, “We’ve seen rapidly accelerated demand for private markets among insurers in recent years, given these investments’ dual benefits of diversification and increased income generation.”

Navigating risk: finding the right investment partner

With 2024 projected to be the biggest election year in history, insurers see political uncertainty impacting macro risks, citing regulatory developments (68%) and rising geopolitical tension and fragmentation (61%) as their top concerns. Additionally, interest rate risk (69%) and liquidity risk (52%) were highlighted as the most serious market risks for insurers. Despite this outlook, 74% of insurers have no plans to change their current risk profiles. Notably, many insurers reported they benefit from partnerships to augment their internal expertise for risk evaluation as well as portfolio construction. According to 40% of survey respondents, an investment partner who understands both their insurance business and its operating model is fundamental to the success of insurers’ strategic priorities.

Asset allocation: a balanced approach across public and private assets

Within public markets, 42% of those surveyed planned to increase allocations to government and agency bonds. Inflation-linked bonds are also a priority, with 33% planning to increase exposure, given nearly half of insurers (46%) identify inflation as a major macro risk. Additionally, 44% of respondents are looking to increase their allocations to cash and short-term instruments for liquidity.

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 insurers (52%) reported they will increase allocations to multi-alternative investments for greater flexibility and customization.

Olivier Van Eyseren, Head of the Financial Institutions Group, EMEA for BlackRock said, “Insurers face unique challenges when evaluating strategic asset allocation to alternative investments, including regulatory issues, liquidity needs, and higher capital charges. An important part of our work with insurance clients is helping them navigate these short-term complexities while working toward the best possible long-term portfolio outcomes.”

Seizing the moment for clean energy infrastructure

Nearly all (99%) of insurers surveyed have set a low-carbon transition objective within their investment portfolio, with 57% of respondents citing management and/or mitigation of climate risks as a top motivation for doing so. Additional drivers for setting low-carbon transition objectives include responding to stakeholder and beneficiary interest and fulfilling regulatory requirements. To support their low-carbon transition strategy, clean energy infrastructure such as wind and solar (60%) and technologies such as batteries and energy storage (60%) were identified as the top two thematic areas that insurers plan to target. In addition, 66% of respondents stated that they have more conviction now towards investing in the low-carbon transition than they did one year ago.

Leveraging innovative technology

In an increasingly volatile and complex macroeconomic and regulatory environment, insurers recognize the importance of investing in technology. Integrated asset allocation (63%) and asset liability management (61%) were named as strategic priorities for their technology platforms. Regulatory capital integration (51%) was also cited as an area where technology could add value. As insurers look to continue their deployment into private markets, 53% of respondents view private asset modeling as an additional area to leverage technology.

About the BlackRock Global Insurance Survey

The BlackRock Global Insurance Survey, now in its thirteenth year, provides industry-leading insight into the thinking and plans of the insurance industry through independently conducted interviews of senior insurance executives across the globe. This year’s survey conducted in July – September 2024 encapsulates the views of 410 senior industry executives in 32 markets with the following regional distribution: 42% from EMEA, 29% from Asia-Pacific, 19% from North America, and 10% from Latin America. Taken together these companies represent investable assets of approximately US$ 27 trillion. The associated interactive report complements the global findings with regional results, comments from industry peers and insights from BlackRock experts.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information, please visit www.blackrock.com/corporate

Press Contacts



EMEA



Emma Philips

emma.phillips@blackrock.com

(+44) 20 7743 2922



US



Thomasin Bentley

thomasin.bentley@blackrock.com

(+1) 646 231 1769



APAC



Cecilia Ho

cecilia.ho@blackrock.com

(+852) 39032595

Source: BlackRock

FAQ

What percentage of insurers plan to increase investments in private assets according to BlackRock's survey?

According to BlackRock's survey, 91% of insurers plan to increase investments in private assets over the next two years.

How many insurance investors were surveyed for BlackRock's (BLK) Global Insurance Report?

BlackRock's Global Insurance Report surveyed 410 insurance investors across 32 markets, representing nearly $27 trillion USD in assets under management.

What percentage of insurers are targeting clean energy infrastructure investments for low-carbon transition objectives?

60% of insurers are targeting clean energy infrastructure investments, such as wind and solar, for their low-carbon transition objectives.

What are the top market risks identified by insurers in BlackRock's (BLK) survey?

The top market risks identified by insurers in BlackRock's survey are interest rate risk (69%) and liquidity risk (52%).

What percentage of insurers plan to increase allocations to government and agency bonds?

42% of insurers surveyed plan to increase allocations to government and agency bonds within public markets.

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