Some 82% of insurers plan to increase their exposure to alternative assets such as real estate, according to research conducted on behalf of Blackrock.
The research by the Economist Intelligence Unit found that where many insurers had invested in traditional assets such as government bonds they are now turning to alternatives to diversify returns and boost income.
The attractive returns of alternative lending and the lack of activity among traditional lenders made it attractive for insurers to get involved in commercial real estate lending.
Patrick M Liedtke, head of Blackrock’s insurance asset management business in Eurpe, said: “Insurers are turning to a broader range of assets, particularly income-generating alternative credit investments such as direct lending, in order to diversify returns and boost income. But it isn’t easy as these markets often aren’t their natural habitat, and there are barriers to being successful here.”
