The majority of insurance companies are optimistic about private equity investments and 68% intend to make their next commitment to the asset class in 2009 or 2010, according to Preqin's latest private equity research report, Survey of Insurance Companies Investing in Private Equity.
During September 2009, we surveyed 75 insurance companies around the world to ascertain their current views of the private equity industry. In the next 12 months, more than a quarter (26%) of respondents to the survey informed us they intend to increase the level of their exposure to the private equity asset class and a further 66% are seeking to maintain their private equity allocations. Just 9% are looking to reduce their allocation to private equity. The longer term intentions of insurance companies towards private equity are also encouraging; more than half (53%) intend to maintain their exposure, 37% intend to increase their exposure and just 10% intend to decrease their exposure in the next three to five years.
Areas which insurance companies feel are currently presenting the best opportunities for investment include distressed private equity funds, secondaries funds, and direct purchases of fund interests on the secondary market. The financial crisis also seems to have little effect on the views of insurance companies towards different geographic regions for private equity investment, with the vast majority stating their geographical preferences for private equity investments have not changed.
To see the full results of Preqin’s Survey of Insurance Companies Investing in Private Equity, please click here.