Best’s Special Report: Growth in Insurers’ Private Equity Investments Slowed Significantly in 2022
U.S. insurance companies’ private equity investments slowed in 2022, rising just 3.3% in 2022 to $132.0 billion, following a year of exceptional growth in the previous year, according to a new AM Best report.
- U.S. insurance companies’ private equity investments slowed in 2022, rising just 3.3% in 2022 to $132.0 billion, following a year of exceptional growth in the previous year, according to a new AM Best report.
- In its Best’s Special Report, titled, “Growth in Insurers’ Private Equity Investments Slowed Significantly in 2022,” AM Best states that life/annuity insurers, which account for three-quarters of the insurance industry’s private equity book adjusted/carrying value, were responsible for much of the $4.2 billion in growth.
- “Low interest rates until 2021 resulted in record-breaking performance for private equity, providing an attractive option for insurers seeking higher yields.
- Leveraged buyout funds (59.4%) accounted for most private equity investments by the insurance industry, and they suffered the most owing to economic headwinds.