Goldman Sachs Exchanges

How insurers are navigating volatile markets

24 snips
Apr 25, 2025
Mike Siegel and Matt Armas, both leaders in Insurance Asset Management at Goldman Sachs, dive into how insurers are adjusting to turbulent markets. They highlight a significant shift from public to private markets, spurred by inflation and recession concerns. The conversation also touches on the growing role of AI in investments, enhancing underwriting, and influencing life insurance products. Additionally, they discuss the resurgence of the insurance sector, revealing resilience amidst economic challenges and the importance of adapting asset strategies for better liquidity.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Insurers Navigate Market Volatility

  • Insurers face challenges from equity volatility but it is less damaging due to their lower equity exposure.
  • Rising government rates and moderate credit spread increases can benefit insurers by providing better reinvestment opportunities.
INSIGHT

Pivot to Private Markets

  • Insurers are shifting from public to private assets to gain defensive, resilient portfolios.
  • They exploit liquidity premiums and complexity premiums since they can hold less liquid assets.
INSIGHT

Expanding Private Asset Strategies

  • Insurers have long invested in private assets and now diversify further into infrastructure and asset-based lending.
  • Expanding private investment categories provide higher returns and greater portfolio diversification.
Get the Snipd Podcast app to discover more snips from this episode
Get the app