Insurance investors are set to increase their allocations abroad this year, with 53% planning to expand their international investments, according to the 2025 Aviva Investors Private Markets Study.
The trend is particularly strong across the Asia-Pacific (APAC) region, where 64% of investors intend to boost their allocations outside their local markets. Japan, Singapore, and South Korea are expected to be the key destinations for these investments.
Private corporate debt allocations show regional variation. North American investors plan to allocate 12%, while their counterparts in APAC are looking at 9%, in contrast to a global average of 10%. This difference is largely due to the more mature private credit market in the U.S., compared to the smaller market in APAC, explained Nick Fisher, Aviva Investors’ research director for private markets.
Private equity, which accounted for 19% of total allocations in 2024, remains a significant focus. Public pensions and insurance companies have slightly lower allocations, at 17% and 16%, respectively. Financial institutions are the most aggressive investors in this space, with allocations reaching 28%. Meanwhile, structured finance and nature-based solutions remain niche, with allocations standing at 5% and 3%. However, official institutions have allocated 8% to structured finance.
Regional preferences also vary. European investors show a strong preference for North America over APAC, while U.S. investors lean towards APAC (62%) rather than Europe (29%). Canadian investors, on the other hand, favor Europe (52%) over APAC (33%).
Geopolitical risks are the top concern for investors looking ahead to the next decade, with 73% of respondents citing them as a major factor. Financial and official institutions are particularly concerned, with 80% and 85% expressing apprehension, respectively. Investors from Canada (82%), China, Japan, Singapore, South Korea, and Spain also identified geopolitical risks as a primary concern.
Additionally, 82% of insurers are focused on demographic shifts, while technological advancements, especially in artificial intelligence, are seen as significant challenges. Social inequality was also a prominent concern, particularly among APAC investors.
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