The Convergence of Insurance, Alternatives and Private Equity

This article was produced by SS&C as part of their valued industry partnership with Insurance

Investor.

Safe havens for insurance investors are hard to find in 2022, which may help explain why interest in alternative and private market investing remains strong.

There are good reasons for this interest. Among them:

•  Expanded opportunity for higher yields and margins
•  Strengthened ability to meet sustainable and ESG investment objectives
•  Greater portfolio diversification
•  Better alignment of long-term assets and cash flows with existing long-term liabilities and maturities
  
  

The economic and social trends and circumstances we are experiencing right now are giving way to many opportunities for private market investing. There is a need for more data centres, industrial warehouse distribution centres and transportation/logistics investments driven by an explosion in online shopping in home internet and data needs. Further, a global focus on climate change and carbon reduction is creating new opportunities for biotech and clean energy infrastructure investments that insurers can benefit from.

Yet, alternative and private market investing comes with a learning curve and technology challenges that can easily chip away at your hard-won margin if not addressed early.

Read, “The Convergence of Insurance, Alternatives and Private Equity,” for insights into the key trends fuelling the convergence as well as six levers that can help shore up your private market investment strategies and protect your returns.