Andrew Putwain: How have you seen insurers’ demand for private-market solutions evolve, and where do you see the greatest opportunity to deploy private assets going forward?
Kerry O’Brien: Insurer demand for private assets should continue to grow, but the nature of that demand has changed. Historically, private markets were often used primarily to earn incremental spread over public investments, particularly during the zero-rate era. Today, with public-market yields more attractive, insurers are focused less on yield pickup alone and more on balance-sheet outcomes: liability matching, capital efficiency, liquidity management, accounting treatment and downside resilience.
The greatest opportunities are in high-quality, capital-efficient private credit strategies that remain aligned with insurers’ liabilities. That includes investment-grade private placements, infrastructure debt, asset-based finance, commercial mortgage loans, fund finance, structured credit and select real estate debt. In each case, the key is discipline: originating assets carefully, controlling documentation, understanding collateral and structuring exposures around true credit quality rather than ratings arbitrage or a simple search for yield.
We are also seeing demand broaden from single-asset mandates toward more customised solutions that combine public and private credit, asset-liability management and capital-aware portfolio design. That reflects a more strategic use of private markets, where insurers want assets that solve multiple objectives rather than simply adding spread.
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