The global insurance industry is shifting toward more diversified and illiquid investment portfolios, according to findings from the 14th Global Insurance Survey by Goldman Sachs Asset Management.
The survey, which included 405 participants representing over $14 trillion in insurance assets, revealed that 62% of insurers plan to increase their allocations to private assets over the next year. Among these, private credit stands out, with 61% of respondents ranking it among the top five asset classes expected to deliver the highest total returns over the next 12 months.
This growing confidence in private assets comes as insurers increasingly believe that credit quality has stabilized. Nearly one-third of insurers are prepared to take on greater credit risk. “As the market expands, more financing opportunities could emerge, offering attractive returns to insurers while diversifying their direct lending portfolios,” says Stephanie Rader, Global Co-Head of Alternative Capital Formation at Goldman Sachs Asset Management.
