OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Jason Hopper, associate director, AM Best, said U.S. life/annuity insurers have shown the greatest interest in private equity investments, with property/casualty and health insurers showing increased activity as well. Click on http://www.ambest.com/v.asp?v=privateequity719 to view the entire program.
Hopper highlighted the shift toward private equities as insurance companies continue to search for additional investment yield.
“From 2013-2016, holdings in private equity investments were relatively flat throughout the entire insurance industry,” said Hopper. “However, over the last two years, there has been a noticeable uptick predominantly driven by the life/annuity industry, with the property/casualty and health segments also increasing their holdings.”
Hopper also addressed what he believes is driving these additional investments.
“There has been a focus on private equity, as diversification is a key player. Private equity investments are relatively low-correlated compared with other asset classes, so they are somewhat isolated. InsurTech is also likely another reason. If companies do not have the expertise or sources to commit more funds to innovation and technology in-house, investing through a private equity fund might be a way to get into that space.”
To access a copy of this special report, titled, “Private Equity Holdings Spike for All Insurance Segments,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=287169.
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