Private equity holdings to increase


On: Jul 2020

According to the recent report, American insurance firms for a 4th straight year gained their private equity investments by almost 10 percent in 2019 to $81.3 billion because this asset remains engaging to insurers observing to expand their expenditure portfolios or gain returns in the low interest rate atmosphere.

It is also reported that the firms that created private equity investments and were discovering for an exit like an IPO or sale, may require to defer performing so amid the coronavirus pandemic atmosphere, as they may not be able to gran their desirable amount. But, the less interest rates as well as a lack of cash-strapped businesses with different economic models generate opportunities private equity holdings.

As many insurers have pulled back from fund expenditures and also have moved allocations to private equity investments to control exposure to alternative assets and gather better returns, as compared with the public markets. The United States life/annuity insurers have prompted the majority of growth in private equity holdings. The life/annuity segment estimates for 3 quarters of the insurance market’s private equity arrange assets on average nearly 1.5 percent as compared to 2.3 percent for property or casualty insurers and 7.1 percent for health insurers.