Insurance companies, and life and annuity companies in particular, are adding to their alternative asset allocations, according to a new report from Patpatia & Associates. Insurance companies’ general accounts represent $4.7 trillion in assets. As they seek to further diversify assets to combat low interest rates and other negative factors, these companies are increasingly outsourcing their investments.

“Insurance general account outsourcing is the last underserved institutional asset management market, and now accounts for 7% of leading managers’ assets,” according to the Patpatia report, which was based on an analysis of more than 500 insurance companies and a survey of 62 investment managers that target insurance general accounts. “Alternative asset managers are now beginning to specifically target insurance companies as a discrete source of placements. It is an opportune time for alternative investment firms to pursue the business.”

For alternative managers spanning hedge funds, real estate, private equity, investment banks and other advisors in alternative investing, the Insurance Asset Management Survey provides valuable intelligence on how to capitalize on this growing business opportunity, including:

- Helping managers evaluate whether to enter the insurance market
- Trends in allocations from insurance companies to money managers
- Evaluations of the demand for different alternative products within specific insurance market segments
- Which high potential insurance segments are expanding their alternatives holdings
- What insurers’ unique needs are and how alternatives managers should sell to them
- What the drivers of success in the insurance market are, and which firms are already capitalizing on the opportunity

To download the executive summary, click here.

The regular price of the report is $1,195*. HedgeWorld subscribers can get a discount. For more information please contact Greg Winterton at greg.winterton@thomsonreuters.com, or (646) 223-6787.

* - Earlier we listed an incorrect price. The price is $1,195. Apologies for the confusion.

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