Insurance Companies​

 

A contract in which an individual or entity receives financial protection against losses. Insurance companies receive premiums and must invest these premiums in order to cover potential liabilities.

 

Insurance companies often invest in fixed income but have increased exposure to alternative asset classes due to the low rate environment.

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Types of Insurance Companies

  • Accident and Health

  • Life Insurance

  • Property and Casualty

  • Reinsurance

Major Considerations

  • Prefer larger established GPs

  • Often make fewer but larger investment commitments

  • Prefer stable returns and liquidity

  • Can be a source for patient long-term capital

  • Can be sensitive to fees

Largest Pension Plans

  1. Prudential Financial, New Jersey; AUM – 1.5T

  2. Ping An Insurance Group, China; AUM – 1.1T

  3. Allianz Group, Germany; AUM – 1.1T

  4. Nippon Life Insurance, Japan; AUM – 751Bn

  5. Japan Post Insurance, Japan; AUM – 700Bn

  6. Assicurazioni Generali, Italy; AUM – 700Bn

  7. Nippon Life Global Investors America, New York; AUM – 613BN

  8. Aviva Life and Pensions, UK; AUM – 604Bn

  9. Generali Group, Italy; AUM – 583Bn

  10. New York Life Insurance, New York; AUM – 550Bn

 

PreQin 2020

Resources​

THE GROWING ROLE OF ALTERNATIVE INVESTMENTS IN INSURANCE; Hedge Fund Journal

THE LARGEST RETIREMENT FUNDS; Pensions and Investments

INSURERS FORCED TO EXPAND THEIR HORIZONS; Pension and Investments

 

INSURERS LOOK BEYOND THE FIXED INCOME HORIZON FOR YIELD; Institutional Investor