Global insurers' allocation changes in 2023 and 2024

A good portion of insurance companies lowered their equity exposure in 2023 while raising private credit, infrastructure and cash allocations, according to the Mercer and Oliver Wyman 2024 Global Insurance Investment Survey conducted during the fourth quarter of 2023.

There were 31%, 29%, and 17% of respondents who said they decreased allocations to domestic, international and emerging markets equities, respectively. Investment-grade private debt, below-investment-grade private debt, and cash allocations were increased by 27%, 23% and 35% of respondents, respectively.

At the end of 2023, 37% of insurers planned to increase allocations to core fixed income, 32% planned to increase investment-grade private debt, and 21% planned to below-investment-grade private debt. More than a quarter, 27%, stated their intention to lower cash.

The majority, 60%, said private markets were below their target allocation. One-third were at their target allocation, and only 7% were above it.