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.
Types of Insurance Companies
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Accident and Health
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Life Insurance
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Property and Casualty
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Reinsurance
Major Considerations
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Prefer larger established GPs
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Often make fewer but larger investment commitments
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Prefer stable returns and liquidity
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Can be a source for patient long-term capital
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Can be sensitive to fees
Largest Pension Plans
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Prudential Financial, New Jersey; AUM – 1.5T
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Ping An Insurance Group, China; AUM – 1.1T
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Allianz Group, Germany; AUM – 1.1T
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Nippon Life Insurance, Japan; AUM – 751Bn
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Japan Post Insurance, Japan; AUM – 700Bn
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Assicurazioni Generali, Italy; AUM – 700Bn
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Nippon Life Global Investors America, New York; AUM – 613BN
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Aviva Life and Pensions, UK; AUM – 604Bn
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Generali Group, Italy; AUM – 583Bn
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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