Three in five insurers (62%) are planning to increase their allocation to private assets this year, new research by Goldman Sachs Asset Management has indicated.
According to the group’s findings, insurers are remaining confident despite rising macro concerns around global geopolitical tensions and US recession, with 88% of insurers still expecting the S&P 500 Index to climb higher in 2026.
The 15th annual global insurance survey by Goldman Sachs revealed that asset-backed finance is currently appealing to insurers, with a net 38% planning to increase allocations in their general account portfolios to the asset class over the next 12 months.
Other attractive asset classes in their view included investment-grade private placements, with a net 35% of insurers expecting to increase allocations, and this was followed by senior direct lending (33%), private equity (25%), and infrastructure equity (25%) as areas insurers are expecting to target.
Global head of insurance asset management and liquidity solutions at Goldman Sachs, Mike Siegel, said: “Over the 15 years we have conducted this survey, private credit has continued to evolve into a broad and deep asset class and a core holding for insurers looking to address their yield and duration matching needs.
“They are sophisticated investors that are able to invest and be opportunistic in credit cycles. We believe they represent patient capital and are well positioned to be a lender of choice to high quality borrowers in more volatile markets.”
Goldman Sachs based its survey on responses from 434 participants, which included chief investment officers (CIOs) and chief financial officers (CFOs), between 11 January and 3 February.
When asked to rank the issues that pose the greatest macroeconomic risk to their investment portfolios, insurers cited economic recession in the US (52%), geopolitical tensions (52%), credit and equity market valuations (46%), and inflation (42%) as the top risks.
More than half (55%) of insurers globally are now predicting the US will enter a recession within the next three years, up from 46% one year ago.
However, the insurers surveyed revealed they remain optimistic about the S&P 500 Index this year, with 55% expecting a total return between 5% and less than 10%, and 18% forecasting a return between 10% and 20%.
“The investment environment has quickly become more nuanced and complex,” said global head of the insurance asset management business at Goldman Sachs, Jared Klyma.
“Fluctuating macroeconomic conditions, geopolitical shifts, and rapid technological advancements are creating a landscape where disciplined asset selection across both private and public markets matters more than ever.”
