Institutional

Goldman Sachs has struck a tremendous blow with its takeover of NN Investment Partners, the asset management arm of Dutch insurer NN Group, which was announced a few days ago.

In the coming weeks, the question will be answered as to what fate befalls two important Dutch asset managers: both NN Investment Partners and Actiam are awaiting the Salomon judgment of their mothers, being NN Group and Athora. While NN is still vaguely talking about “a review of strategic options”, at Athora it is only a question of to whom the daughter will be given.

Insurance companies are looking to significantly increase their allocations to private equity, mid-market corporate loans and infrastructure debt, according to a survey of almost 300 firms by Goldman Sachs Asset Management (GSAM).

‘Insurers are planning to increase risk in their investment portfolios, probably by shifting liquidity to riskier asset classes,’ GSAM concludes. The asset manager calls the risk sentiment ‘decidedly positive’, due to reduced uncertainties amid the global pandemic.

The shift from public to private investments among insurers is continuing and the coronavirus crisis has not changed that so far. The crisis has, however, emphasised the added value of managing risk budgets rather than maintaining strict limits on allocations to different asset classes.

A 44.5% increase in premium income in Luxembourg’s insurance sector last year was driven mainly by Brexit relocations in the non-life sector. However the traditional mainstay for the industry, life insurance, also enjoyed a strong year with income up 18.6%.