https://ift.tt/c0vtYlR Insurers Plan To Allocate More Funds In Private Equity Investments – Cryptovibes.com – Daily Cryptocurrency and FX News

As insurers contend with rising inflation and its effects on monetary policy, they want to put more funds into private equity this year, a survey by Goldman Sachs Asset Management showed on April 4.

According to the survey of 328 executives overseeing more than $13 trillion in insurance assets, in the next 12 months, more than 40% of insurers intend to increase their investments in private equity.

Michael Siegel, Global Head of insurance asset management said:

“Against a complex macroeconomic and geopolitical 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.”

For those insurers seeking to increase investment returns, other favored asset classes, including real estate equity, United States investment grade private placements, middle-market corporate loans, infrastructure equity, and infrastructure debt, are a favorite according to this survey.

However, rising inflation and tighter monetary policy are now seen as the biggest threats to insurers’ portfolios.

A surge in energy and food prices that spells more pain for consumers and businesses has been caused by the darkened outlook for the global economy over Russia’s invasion of Ukraine and major central banks have raised rates to tame inflation, even in the face of growth risks.

Throughout the investment process, 92% of investors, globally, said they now consider social, governance, and environmental factors, nearly a three-fold increase from 2017.

The report said that the only group that plans to grow their green or impact bonds allocation as their top priority this year is the European insurers.

Also, 11% of American insurers said they are considering investing or have already invested in cryptocurrencies, as highlighted in the report.