The Singapore-based life insurer believes even as private market valuations come down, long-term return expectations can make these assets a worthwhile investment.
Low interest rates are making it difficult for life insurers to hit return thresholds, and capital charge costs on private assets are forcing them to head up the credit risk curve, say experts.
The coronavirus pandemic are challenging investment strategies in more than one way. But the postponement of upcoming tighter regulations might provide a ray of light.
Mainland insurance firms have been raising their alternative and equity exposure, sparking concerns about their growing vulnerability to a domestic slowdown and stock-market turmoil.
Mainland life insurers are seeking training in areas such as asset allocation, asset-and-liability management and liability-driven investment, heralding a major shift in approach.