Forty-two percent of insurance companies said they are likely to decrease their equity investments over the next 12 to 24 months, a BlackRock survey found. The same percentage said they would maintain their equity exposure, while only 13% indicated they would increase allocations to stocks. Three percent did not indicate either way.
Forty-five percent of those surveyed said they would be increasing their holdings of investment-grade fixed income during the period, with about a quarter (26%) indicating they would increase allocations to non-investment-grade fixed income.
Among alternative asset classes, insurance executives appear keener on illiquid offerings (private equity, real estate, infrastructure, etc.) as 27% indicated they would increase allocations, while only 18% said the same for more liquid alternatives like hedge funds.