@Invesco.
We are excited to share Invesco’s 2025 Insurance Outlook, which provides valuable insights into the evolving landscape of insurance asset management.
We believe easing monetary policy and financial conditions will be a tailwind for the global economy and markets in 2025. In our base case, we expect continued global growth close to potential. Though a recession scenario is not expected, it remains a 15% risk case.
Our 2025 outlook explores:
• Economic Growth & Monetary Policy: how easing monetary policies are expected to support global economic growth, with central banks likely to implement rate cuts across major economies.
• Sector-Specific Insights: the study includes a detailed analysis of the US, Eurozone, and UK markets, including the impact of fiscal policies and central bank actions.
• Investment strategies: why we are underweight equities relative to fixed income, favouring US equities and defensive sectors. Our strategies also emphasise investment-grade credit and sovereign fixed income.
• Fixed Income focus: how fixed income remains a cornerstone for insurance portfolios, with a positive outlook on duration and potential yield curve steepening.
• Senior Secured Loans: why we believe senior loans may feature in insurance portfolios, having offered one of the best yields in fixed income, while providing downside risk mitigation.
• Opportunities in Private Credit: why we expect to see increasing opportunities in private credit and commercial real estate debt, which are anticipated to offer attractive returns.
• Potential risks and solutions: the potential risk of disinflation (and subsequent lower interest rates) to insurance business models and how investment diversification could be vital.
You can also view our full range of 2025 outlooks with Invesco experts sharing their views on where they’re seeing risks and opportunities in 2025 across equities, fixed income, multi-asset, real estate and private credit.
Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
Data as at 18 November 2024.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change.
Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on Thames, Oxfordshire RG9 1HH, UK Authorised and regulated by the Financial Conduct Authority.
