Emerging Market (EM) debt represents an underutilized asset class for U.S. life insurers when evaluating capital efficient investments to optimize income and return across the general account. As of 3Q20, life insurers allocated less than 2.0% to this asset class.
Accommodative developed market (DM) monetary policy, rising commodity prices and effective COVID-19 vaccines are converging to drive global capital flows to EM. In our view, these dynamics are likely to overshadow challenging domestic fundamentals and reboot growth in most economies, providing tail winds for EM investments.
In this session, we will explore the outlook and opportunity set across EM debt markets, considerations for a life insurer in adding EM exposure, and ways to approach selecting a partner to best navigate the market opportunities.