by Henry H. McVey of KKR
KKR spoke with more than 50 global insurance CIO's to gauge their key areas of focus as they approach repositioning their investment portfolios in 2021 and beyond. Some of the key conclusions include:
"Interest Rate pressure has intensified:
Interest Rate pressure on portfolios has intensified mightily (especially in Europe where many nominal risk free rates are still negative), a stark reality that we believe can persist for some time."
"The Yearn for Yield continues:
However, in the near-term, the technicals linked to our Yearn for Yield thesis – many of which were reinforced during this survey work – encourage us to lower our 10-year interest rate forecast."
"A need for more strategic and thoughtful risk taking:
Consistent with these asset allocation changes, and as we noted above, our survey recipients overwhelmingly cited a greater comfort level with and need for the addition of more strategic and thoughtful risk taking strategies."
"Life and Annuity and Reinsurers are the most hungry for Alternatives:
When we delve deeper into the data, it is the Life and Annuity companies and Reinsurers that are most likely to increase their exposure to non-traditional products."
Click Here to View Report: Dream Big: KKR 2021 Insurance Survey
KKR Global Publications