Insurers Ramp Up Private Asset Investments, Spearheaded by Private Credit Surge — Evening Brief – 03.27.25
Insurance investors have increasingly shifted toward private assets over recent years, a trend projected to intensify throughout the remainder of the year, based on findings from a Goldman Sachs Asset Management (GSAM) survey of insurance investors.
Roughly 62% of surveyed CIOs and CFOs from insurance companies intend to boost their firms’ private market allocations in 2025, according to Goldman Sachs Asset Management’s 14th annual global insurance survey, The Great Pivot. The report highlights private credit as a key engine expected to drive returns this year, underscoring its growing appeal amid shifting investment strategies.
“Our 14th Annual Global Insurance Survey shows insurers are navigating evolving macroeconomic concerns by rotating toward asset classes with the potential to provide both attractive risk-adjusted returns and diversification benefits,” said Mike Siegel, GSAM’s global head of insurance asset management and liquidity solutions. “Amid this industry-wide rotation, important new trends in liquidity management may be developing.”
Insurance investors identify several macroeconomic risks threatening their portfolios in 2025. Inflation tops the list, cited by 52% of respondents, followed closely by an economic slowdown or U.S. recession (48%), credit and equity market volatility (47%), geopolitical tensions (43%), and tariffs and trade disputes (32%).
insurance investors in the Americas and Asia Pacific regions pinpointed the risk of a U.S. economic slowdown as their primary concern for 2025, reflecting its outsized impact on global markets. In contrast, European investors highlighted geopolitical tensions as their top worry, likely driven by ongoing regional uncertainties and conflicts influencing their investment outlook.
Approximately 35% of respondents indicated they plan to keep their portfolio allocations to private market asset classes unchanged over the next 12 months, while just 3% intend to reduce their exposure.
In the 2024 survey, 56% of respondents planned to increase their allocations over the next 12 months, a rise from 51% in the 2023 survey. Meanwhile, 38% intended to maintain their allocations in 2024, down from 43% in 2023. In both years, only 6% of respondents signaled plans to decrease their private asset allocations
Goldman Sachs asked insurance investors which asset classes they intend to boost allocations to over the next 12 months, and private markets dominated the responses. Four of the top five asset classes cited were private, with 58% of respondents planning to increase allocations to private credit—highlighting its role as a return driver. Following closely was investment-grade private debt (40%), asset-based finance (36%), infrastructure debt (32%), and private equity (29%).
Just 17% of insurance investors indicated plans to increase allocations to U.S. equities, despite 57% of them ranking it as the second-highest returning asset class over the next 12 months—a disconnect suggesting caution despite optimism. Meanwhile, private credit took the top spot, with 55% of respondents expecting it to deliver the highest returns.
Insurance investors anticipate underperformance from several asset classes over the next 12 months. Green and impact bonds topped the list, with 46% of respondents expecting weak returns, followed by cash and short-term instruments (43%), municipal bonds (37%), and emerging market equities (31%).
GSAM polled 338 insurance CIOs and senior investment professionals, 53 CFOs, and 14 individuals holding both roles. The participants collectively manage over $14 trillion in assets, representing roughly half of the global insurance industry’s total assets.