Insurers committed to private equity in 2012

Two-thirds of insurers are planning to make new private equity investments before the end of the year, according to the latest report by financial data firm Preqin.

The report notes that, despite the impending Solvency II regulatory changes, 79 percent of insurers have not altered their levels of exposure to private equity.

“Insurance companies represent an important source of capital for the private equity industry, accounting for 9 percent of all capital invested in the asset class,” said Emma Dineen, manager – private equity investor data at Preqin.

“Regulations such as Solvency II are likely to impact upon the level of exposure some of these investors will have to the asset class. However, over three-quarters of insurance companies have so far been unaffected by impending regulations and the majority of insurance companies will continue to allocate capital to private equity in order to meet their long-term investment objectives.”