Nuveen's fifth annual EQuilibrium survey reveals insurers are moderating their portfolio adjustments as markets normalise.
This article was produced by Nuveen as part of their valued industry partnership to Insurance Investor.
Nuveen's fifth annual EQuilibrium survey reveals insurers are moderating their portfolio adjustments as markets normalise. The study, capturing insights from 235 insurance companies managing $6 trillion in assets, shows a significant shift in investment behaviour and market sentiment.
Key Findings include:
Strategic Changes Declining
Only 17% making foundational strategic asset allocation changes (down from 33% in 2023)
27% implementing significant tactical changes (down from 44%)
Overall uncertainty levels decreased to 59% from 69% year-over-year
Market Uncertainty Evolution
Geopolitical concerns remain high at 78%
Economic growth uncertainty dropped to 43% (from 63%)
Capital market uncertainty declined to 54% (from 61%)
Private Market Trends
95% plan to maintain or increase private market allocations over next five years
Private fixed income emerges as preferred route
Growing interest in specialised areas like NAV lending and junior capital
Regional Variations:
North America: Focus on esoteric asset-backed securities (ABS) and collateralised loan obligations (CLOs)
UK: Emphasis on consumer finance, credit tenant loans, private infrastructure
Germany: Exploring infrastructure debt and mezzanine opportunities
Asia Pacific: Interest in digital infrastructure, regional private credit, royalty streams
This data suggests insurers are adapting to the normalised interest rate environment while maintaining strategic interest in private markets, with distinct regional preferences emerging in investment approaches.
@Nuveen.
