Asian insurers to invest more in private credit for yield

Asian insurers are increasingly exploring private credit but are also looking to diversify into different markets to reduce concentration risk, according to asset managers.

 

"Asian insurers have a growing appetite for the full spectrum of private credit asset classes ranging from investment grade private debt, direct lending to capital solutions, transition infrastructure debt, to investment grade securitised credit type of strategies,” Thibaut Ferret, head of solutions, Asia, at HSBC Asset Management, told AsianInvestor.

Ferret expects the private credit investment trend to persist in Asia, as insurers in the region are still underweight in private credit compared to their peers in Europe and the US.