Why insurers are delving deeper into real estate as low interest rates linger

Fiona Lam

Published Wed, Oct 27, 2021 · 05:50 AM

Insurance

Singapore

THE prospect of higher and stable returns from real estate continues to woo insurance firms globally in the face of persistently low interest rates.

Insurers and their property arms have been snapping up stakes in physical assets, pumping capital into real estate funds, acquiring equity interests in property investment firms and developers, and providing real estate-linked loans.

To be sure, this trend is not entirely new. But as the "too low for too long" rate environment looks here to stay, insurers are revving up the pace at which they pursue real estate and other alternative, higher-risk investments, in the hunt for better returns.

In June, Ping An Life Insurance inked a 46.7 billion yuan (S$9.6 billion) deal to buy stakes in six R…