GSAM: Private Credit to Lead Net Allocation for APAC Insurers
Insurance companies in Asia expressed high interest in illiquid assets, according to a survey by Goldman Sachs Asset Management, most notably in private credit.
Similar to 2024, insurers in Asia Pacific expressed the highest net interest towards credit risk (42 percent) according to Goldman Sachs Asset Management’s (GSAM) 14th Annual Global Insurance Survey. This compares to just 16 percent in the Americas and 18 percent in EMEA (Europe, Middle East and Africa).
Part of this interest is directed towards private credit, where 69 percent of insurers in the region indicated would form their largest net allocation in 2025, up 17 percentage points from 2024. Overall, demand for illiquid assets is high with 48 percent also saying they would increase their allocations in private equity. More than 90 percent of APAC insurers plan to increase or maintain overall risk in the next 12 months.
«While concerns remain over inflation and a US economic slowdown, Asia Pacific insurers continue to actively seek investment opportunities,» said Mike Siegel, global head of insurance asset management and liquidity solutions as well as co-head of the client solutions group in APAC at GSAM. «There is increasing interest in alternatives among insurers in the region, driven by the potential for higher and uncorrelated returns, and access to unique opportunities.»
The survey was based on responses from 405 chief investment officers and chief financial officers at insurance companies. The firms surveyed have more than $14 trillion in balance sheet assets combined, representing about half of the balance sheet assets for the global insurance sector.
