Top global insurers plan mortgage loans and PE investments

April 23 2015 by InsuranceAsia News Staff

A survey conducted by Goldman Sachs Asset Management showed that global insurance companies that collectively have more than US$6tr in assets are planning to invest in commercial mortgage loans and private equity this year.

The move is part of the insurers’ efforts to find new investment opportunities that will generate higher returns as yields remain at low levels.

The survey showed that 35% of insurance executives are planning to invest in mortgages, 30% in infrastructure debt and 29% in PE and middle market loans.

A majority of the 267 chief investment officers and chief financial officers surveyed said that low yields continued to be the greatest risk to their portfolios, prompting them to find new investment opportunities. Commercial mortgage loans were the top choice for US insurers while Asian and European firms want to invest more in infrastructure debt and US investment grade corporate debt.

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