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Best’s News & Research Service - July 26, 2019 12:24 PM (EDT)

AM BestTV: U.S. Insurers Increase Private Equity Holdings, Says AM Best Analyst

  • July 26, 2019 12:24 PM (EDT)
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Oldwick //BestWire// - In this AMBestTV episode, Jason Hopper, associate director, AM Best, said U.S. life/annuity insurers have shown the greatest interest in private equity investments, with property/casualty and health insurers showing increased activity as well. Click on to view the entire program.

Hopper highlighted the shift toward private equities as insurance companies continue to search for additional investment yield.

“From 2013-2016, holdings in private equity investments were relatively flat throughout the entire insurance industry,” said Hopper. “However, over the last two years, there has been a noticeable uptick predominantly driven by the life/annuity industry, with the property/casualty and health segments also increasing their holdings.”

Hopper also addressed what he believes is driving these additional investments.

“There has been a focus on private equity, as diversification is a key player. Private equity investments are relatively low-correlated compared with other asset classes, so they are somewhat isolated. InsurTech is also likely another reason. If companies do not have the expertise or sources to commit more funds to innovation and technology in-house, investing through a private equity fund might be a way to get into that space.”

To access a copy of this special report, titled, “Private Equity Holdings Spike for All Insurance Segments,” visit .

Recent AMBestTV episodes:

  • Life Insurers Drawn to Direct-to-Consumer but Face Obstacles, Say AM Best Analysts: Michael Adams, senior financial analyst, and Igor Bass, financial analyst, both of AM Best, said many life insurers are at varying stages of building direct-to-consumer distribution, but they also must address challenges: .

  • Life/Annuity Insurers Better Prepared for Next Downturn, Say AM Best Analysts: Ken Johnson, senior director, and Thomas Rosendale, director, both of AM Best, examine how changes in product mix and asset allocation, along with a focus on asset liability and enterprise risk management, will likely affect life/annuity insurers in the event of an economic slowdown: .

  • Cyber Coverage Growth Attracts Competitors, Say AM Best Analysts: Fred Eslami, associate director, and Sam Hanig, senior industry analyst, both of AM Best, review insurers’ filing data that shows the top writers of U.S. cyber liability coverage: .

  • Investor Interest in Insurtech Prods Traditional Insurers: Andrew Johnston, global head of insurtech, Willis Re, said many insurers are stepping up their own technology and innovation efforts to better respond to technology-enabled competitors: .

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at . View AM BestTV episodes at .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.

Health Insurance Life And Annuity Insurance Property And Casualty Insurance United States Press Release A.M. Best Rating Services, Inc. Insurance Technology

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