Blue Owl

Europe’s experience under Solvency II shows how insurers’ priorities can evolve from regulatory compliance towards sustainable capital generation, balance-sheet stability and liquidity under stress. For insurers in Asia Pacific (Apac), four observations stand out, says Soraya Kazziha, Managing Director, Institutional Capital Insurance Solutions, at Blue Owl Capital.

Some structural reallocation is underway in Asian insurance portfolios. Asset allocations are increasingly focused on illiquidity and complexity as sources of return enhancement. Rather than chasing yield however, many insurance allocators are thoughtfully implementing privates to diversify existing exposures, help mitigate downside risk, match liabilities and meet regulatory capital requirements. In Hong Kong, the private market playbook offers a wide opportunity set, says Blue Owl’s…