Insurers boost allocation to private equity

Blackrock survey finds more than half of firms likely to increase investment in asset class

Insurers are increasing their investment in private equity as they look for higher yielding assets to make up for poor returns on their government bond portfolios.

Firms including Ageas, Zurich, CNP Assurance and Skandia are seeking to increase or have recently increased allocations to private equity.

Jonas Nyquist, head of buyouts at Skandia in Stockholm, says: "Up until 2007, invested capital in private equity was around 1.5% of our balance sheet. Then it was decided we would increase our