Insurers raise private asset allocations to 21% in 2024

17% of fixed income investments are now in private credit.

Insurers are accelerating their shift into private markets through external asset managers, according to new data from Clearwater Analytics. 

The analysis, covering 101 insurance asset managers and consultants with $4.5t in unaffiliated general account assets under management (AUM), shows that 21% of these assets are now allocated to private markets—up from 15% in 2022 and 7% in 2015.

Unaffiliated general accounts refer to insurer-owned investments managed by third-party asset managers. 

Within these accounts, 17% of fixed income investments are now in private credit, compared to 12% in 2022 and 4% in 2015. 

For equity investments, 39% are in private equity or equity alternatives.

Private fixed income investments include 31% in private placements, 28% in mortgages and real estate, and 17% in middle market credit. 

Private equity holdings are led by private equity and venture capital funds (42%) and real estate (33%).

The increasing shift to private markets comes as insurers seek yield and diversification amid changing market dynamics. 

The 2025 Insurance Investment Outsourcing Report (IIOR), produced by Clearwater Analytics in partnership with DCS Financial Consulting, notes a 24% year-on-year increase in unaffiliated general account AUM. 

Over the past decade, private asset class AUM within these accounts has grown from under $50b to more than $800b, whilst public fixed income has dropped to 79% of total AUM in 2024 from 93% in 2015.