Missed Investment Opportunities for Insurers

CLO Outlook & Opportunities for Insurers

• Generally speaking, what proportion of insurers’ portfolios does private equity make up?
• Have private equity investments experienced the same level of perceived overvaluation that public equities have?
• Is insurer allocation to private equity projected to increase or decrease in the short to medium term?
• What are the challenges and opportunities within the private equity sector that seem to be drawing insurers (i.e. sectors, fund sizes, leveraged investments, etc.)?

• What do insurers anticipate from forthcoming fiscal and monetary policy and what challenges and opportunities do they pose for their investment decisions?
• Where have insurers turned to during this prolonged period of low rates?
• How have these allocations performed?
• Is there a tipping point where credit risk becomes too high for insurance portfolios to handle in spite of attractive returns?
• Where will insurers turn to if the low-rate environment persists?

• How important have insurer allocations to securitized assets and private market investments been over the past decade?
• What types of securitized assets have gained in popularity among insurers in this perpetually low-rate environment?
• What new forms of securitized assets are becoming attractive in the hunt for yield?