Asian insurers are more active than their western counterparts in preparing for the end of quantitative easing policies and are looking to diversify into higher yielding and less liquid fixed-income assets, boosting absolute returns as bond yields continue their upward trend.
To better prepare for the end of US quantitative easing in the next one or two years, 70% of Asian insurers said they will cut portfolio duration to reduce their interest rate risk, while 60% said they will move away from benchmarks to adopt more absolute return strategies, according to the world’s largest money manager BlackRock.
For a longer horizon over the next three years,...