Insurer Allocations to Private Markets Climb Higher
The widespread demand for private market investment applies also to insurers which have increased their allocations to the asset class, according to Clearwater Analytics.
Among assets owned by insurers and managed by external, third-party asset managers, 21 percent was held in private markets, according to a report by Clearwater Analytics, a fintech company that provides automated investment accounting, performance, compliance and risk reporting worldwide.
This marks an increase compared to 15 percent in 2022, 9 percent in 2020 and 7 percent in 2015. In the past decade, insurers' assets under management in private markets have surged from $50 billion to over $800 billion.
Sub-Asset Class Allocation
In terms of sub-asset classes, 17 percent of fixed income assets were allocated to private credit, compared to 12 percent, 7 percent and 4 percent in 2022, 2020 and 2015, respectively. And within equities, around 39 percent was held in private equity or equity alternatives, compared to 29 percent, 23 percent and 30 percent in 2022, 2020 and 2015, respectively.
«The insurance sector is undergoing a period of significant transformation and that is underlined by how organizations continue to turn their attention towards private markets and alternatives,» said Sandeep Sahai, CEO of Clearwater Analytics.
The 2025 Insurance Investment Outsourcing Report (IIOR) was produced by Clearwater Analytics in partnership with DCS Financial Consulting. It involved data from 101 insurance asset managers and consultants from North America, UK, Continental Europe and APAC representing $4.5 trillion in assets managed by an external third-party fund manager.
