Growing acceptance of private assets shows up among insurers’ products

PRIVATE credit is growing as a share of insurers’ portfolios, and is even making its way into products for high-net-worth (HNW) clients. This increasing comfort represents an opportunity for private credit managers, given the patient capital that insurers can draw on.

“If you look at the balance sheets of most insurers, they have heavy exposure to public assets,” said Matthew Michelini, partner and Asia-Pacific head at alternative assets manager Apollo Global Management.

Often thought of as safer, public assets have lately become more volatile and more correlated. Private assets, meanwhile, have shown steady performance.