US insurers plan to increase private infra equity allocations at same rate as EU/UK counterparts

Written by Adam Cadle

03/11/2025

US insurers plan to increase their allocations to private infrastructure equity at the same rate as the EU and the UK over the next two years, a marked contrast to the previous two years where they lagged their counterparts in other locations by more than 20%.

The 2025 Insurance Asset Management Survey published by SLC Management said a “fair bit of this was likely catching up from historically under-allocated infrastructure portfolios”.

“Additionally, strategies like core plus and value add infrastructure offer long-tenor alternative assets and reasonable yield pickup versus other alternatives like private equity, drawing yield-hungry life insurers to the table. Slowdowns and underperformance in traditional alternatives such as private equity and hedge funds may have also contributed to the growth in infrastructure equity allocations.”

Overall, global insurers have larger private infrastructure equity allocations than they did two years ago (54%). Looking ahead, the asset class has the highest number of insurers planning to increase their allocation in the coming two years (58%), just ahead of investment grade private credit.

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