Insurance industry more optimistic about private/public market investment opportunities compared to last year

Written by Adam Cadle

11/09/2025

Investment managers in the insurance industry are more optimistic about investment opportunities across both private and public markets this year compared to last year, with fixed income standing out as the most attractive area, research from Ortec Finance has revealed.

Around 83% of senior executives working in insurance asset management or in investment management firms supporting insurers believe that the attractiveness of investment opportunities in fixed income will increase this year compared with last year, including 46% expecting a substantial improvement.

In private markets, 80% believe investment opportunities will be more attractive this year compared with last year, including 17% who anticipate a dramatic improvement. In equity markets, 74% expect an improvement although only 3% think it will be substantial.

This outlook is reflected in expectations for equity risk in the insurance portfolios they manage, with 75% expecting an increase over the next 12 months. That includes 16% expecting a dramatic rise while 23% foresee no change and just 2% expect a decrease.

When it comes to credit risk, nearly half (45%) expect a dramatic increase in their portfolios, with another 45% anticipating a slight rise over the 12 months. None of the respondents expect credit risk to decline, with 10% believing it will remain unchanged.

Hamish Bailey, managing director UK, and head of insurance & investment said: “Ortec Finance supports insurers and asset managers with advanced scenario analysis, balance sheet simulation, and portfolio optimisation tools. These take account of dynamic asset/liability interactions, liquidity and solvency constraints to help navigate market uncertainty and help make resilient investment decisions.”

Related Articles