L&G direct investments rise 34% to £25.7bn in 2019
Legal & General's group-wide direct investment portfolio grew to £25.7bn as pension risk transfer sales hit a record £11.4bn.
Insurer private credit covers directly originated loans, private placements and other illiquid credit assets held against long-term insurance liabilities. A spread above public bonds is only one part of the decision. Underwriting standards, security, covenants, drawdown timing, liquidity and the capital treatment of a loan all affect the return available to an insurer.
This section reports on transactions, mandates, managers and portfolio developments in the market. It also follows the questions that accompany the growth of private credit in insurer portfolios: the evidence behind an internal credit assessment, the terms of an asset-backed facility, concentration, and whether the asset can support matching-adjustment business. Related coverage on ALM, investment strategy and matching adjustment provides the balance-sheet context. The archive includes both individual transactions and the policy or allocation decisions that change the assets insurers can hold over a longer period. It also records developments in the lending structures and manager relationships used by insurers.
Legal & General's group-wide direct investment portfolio grew to £25.7bn as pension risk transfer sales hit a record £11.4bn.
LGIM Real Assets provided £225m on behalf of clients including Legal & General Retirement Institutional as construction reached 40% completion.