Goldman Sachs Asset Management (GSAM) today released the findings of its seventh annual global insurance survey, “Foggier as We Climb,” revealing that insurers are more pessimistic about the current investment environment. The survey found insurers feel investment opportunities have deteriorated year over year, with 50 percent of insurers saying they felt opportunities are getting worse, up from 36 percent last year.
The survey found that in response to this increasing concern, more respondents (17 percent, up from 10 percent last year), are looking to de-risk their portfolios rather than increase risk (16 percent, down from 26 percent last year). This is the first time since the survey’s inception in 2011 that more respondents say they are looking to de-risk rather than increase risk.
“2018 marked the return of market volatility for the first time in nearly a decade, rattling markets and leading insurers to question the current investment landscape,” said Michael Siegel, GSAM’s Global Head of Insurance Asset Management. “While low returns have been the main concern in the insurance industry for the last several years, the changing economic environment is leading to more focus on protecting portfolios in the event of a downturn.”
To conduct the survey, GSAM interviewed 300 CIOs and CFOs at global insurance companies, representing more than $10 trillion in balance sheet assets and more than onethird of the industry’s global assets.
Notable highlights from the survey include:
This year the Insurance Asset Management team expanded their reach and conducted a supplemental survey targeting retail distribution business leaders in North America. This supplement compared the views of North American business leaders and general account CIOs on a broad range of topics including macro risks, market outlook, the credit cycle and evolving industry themes. The supplement found that the top three macro risks for retail distribution business leaders are credit and equity market volatility, potential US economic slowdown or recession, and deteriorating liquidity conditions.
GSAM Insurance Asset Management partnered with KRC Research, an independent thirdparty research firm, to conduct the 2018 global survey and North American Life Insurance Supplement. The global survey and survey supplement received over 300 responses, including 249 CIOs, 36 CFOs, 13 individuals who serve as both CIO and CFO and 22 North American Business Leaders. By region, the global survey received 168 responses from the Americas, 77 from EMEA and 55 from Asia Pacific. The global respondent base included life, property & casualty, multi-line, reinsurance and health insurers. The 22 senior business leaders comprise business lines including annuities, retirement, executive benefits and mutual funds, and have responsibilities that include business line leadership and investment platform oversight. The global study represents insurers that collectively invest over $10 trillion in global balance sheet assets.
ValueSpectrum.com News Wire & Equity Research: +31 084-0032-842
Copyright analist.nl B.V.
All rights reserved. Any redistribution, duplication or archiving prohibited. analist.nl doesn't warrant the accuracy of any News Content provided and shall not be liable for any errors, inaccuracies or for any actions taken in reliance thereon.