Key Takeaways
- • Approximately 75% of insurers plan to increase private markets allocations over the next 12 months, according to a BlackRock survey reported by the Financial Times, though this is down from 94% in the prior year.
- • Insurers managing more than $24tn in assets were covered by the survey, indicating sustained institutional appetite for private investments despite higher public yields.
- • 41% of respondents prioritise increased exposure to private debt over other private asset classes, including buyouts.
- • Rising public fixed income yields, with the US 10-year Treasury rising from 4.18% to 4.96% and investment-grade corporate debt at 5.84%, have challenged the relative appeal of private debt.
- • Regulatory capital treatment is reportedly insurers' leading concern, following new US capital requirements for certain CLO holdings introduced in July and heightened scrutiny of private credit ratings.
Summary
Approximately 75% of insurers plan to increase their allocations to private markets over the next 12 months, according to a BlackRock survey reported by the Financial Times. The survey, covering insurance companies managing more than $24tn in assets, found that appetite for private investments remains strong, although the share of insurers planning to increase allocations has declined from 94% last year.
Private credit remains a particular area of focus. According to the survey, 41% of respondents prioritise increased exposure to private debt over other private asset classes, including buyouts. Institutional demand has reportedly held up despite redemption pressures in retail-focused private credit vehicles and concerns over deteriorating loan quality.
The relative attractiveness of private debt has been challenged by rising yields in public fixed income markets. US 10-year Treasury yields have increased from 4.18% at the start of 2026 to 4.96%, while investment-grade corporate debt yields have risen to 5.84%. Regulatory and capital treatment reportedly emerged as insurers' leading concern regarding private debt exposure. US insurance regulators introduced new capital requirements for certain collateralised loan obligation holdings in July and have increased scrutiny of private credit ratings used to determine insurers' capital requirements.
Mark Erickson, BlackRock's global insurance strategist, said a significant rise in defaults and weaker recovery rates could moderate future allocations. However, the survey suggests insurers have yet to materially scale back their private markets investment plans.
Private credit remains a particular area of focus. According to the survey, 41% of respondents prioritise increased exposure to private debt over other private asset classes, including buyouts. Institutional demand has reportedly held up despite redemption pressures in retail-focused private credit vehicles and concerns over deteriorating loan quality.
The relative attractiveness of private debt has been challenged by rising yields in public fixed income markets. US 10-year Treasury yields have increased from 4.18% at the start of 2026 to 4.96%, while investment-grade corporate debt yields have risen to 5.84%. Regulatory and capital treatment reportedly emerged as insurers' leading concern regarding private debt exposure. US insurance regulators introduced new capital requirements for certain collateralised loan obligation holdings in July and have increased scrutiny of private credit ratings used to determine insurers' capital requirements.
Mark Erickson, BlackRock's global insurance strategist, said a significant rise in defaults and weaker recovery rates could moderate future allocations. However, the survey suggests insurers have yet to materially scale back their private markets investment plans.
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