As uncertainties surrounding the coronavirus pandemic have begun to wane, world insurers have change into extra open to including threat to their funding portfolios, based on a survey launched Wednesday.
Goldman Sachs Asset Administration’s tenth annual insurance survey revealed that 34% of insurers mentioned they plan to extend the general threat of their funding portfolios, vs. 8% that mentioned they plan to lower their total threat publicity. Against this, final yr’s survey confirmed that 30% of insurers anticipated to extend total threat, whereas 17% deliberate to lower.
The transfer in the direction of rising threat will doubtless be achieved by shifting money into increased threat asset lessons equivalent to non-public fairness, middle-market company loans and infrastructure debt allocations.
For the fifth yr in a row, consideration of environmental, social and governance elements in investments has grown. Globally, 13% of respondents mentioned ESG is a main concern, up 4 share factors from final yr.
In the meantime, 83% of survey respondents mentioned they evaluated ESG of their funding processes, in comparison with 32% simply 4 years in the past. The expansion is basically because of elevated adoption within the Americas.
When requested to establish the highest asset lessons the place they plan to extend allocations, 37% of worldwide insurers mentioned non-public fairness, adopted by middle-market company loans (34%), infrastructure debt (31%), and collateralized mortgage obligations (29%).