Insurance companies to continue investing in private equity: research
Around two-thirds of the leading global insurance companies are planning to make new private equity investments within the year.
This is according to a Preqin research, which reveals that despite the impending Solvency II regulatory changes, the vast majority or 79% of insurance companies have not altered their levels of exposure to private equity.
The results of the most recent Preqin Special Report show that 30% of insurance companies are below their target allocations to the asset class. 85% plan on maintaining or increasing their allocations in the next 12 months and 88% in the longer term.
The results are also positive for fund managers coming to the crowded fundraising market with new vehicles, as 85% of insurance companies will consider forming some new GP relationships over the next 12 months.
It said that 60% have over $250 million allocated to the asset class and the similar number intend to make their next commitments to funds in 2012, 2% intend to invest in 2013 and 16% not before 2014, while 22% remain unsure on exact timings.
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