EXECUTIVE SUMMARY

The insurance sector is in the midst of a structural transformation, fueled by a recalibrated interest rate environment, record annuity sales, and the resulting need to deploy growing pools of long-duration capital. This shift has accelerated allocations toward alternative and private assets, particularly mortgage loans and real estate fund investments, driven by the pursuit of higher yields, portfolio diversification, and more effective asset-liability matching. In today’s highly competitive landscape, every basis point matters for long-term portfolio construction. Historically, both commercial mortgage lending and commercial real estate equity investments have delivered compelling, risk-adjusted returns relative to traditional fixed income, reinforcing their appeal as core holdings for insurers. Against this backdrop, the industry’s evolving investment strategies are reshaping its role in private markets and expanding its influence across the commercial real estate and private credit landscape.