insurance investing · · 1 min read

Private Debt Thirsty Insurers Driving BlackRock Earnings: Fink

Fink says insurers and private credit are BlackRock’s “primary” growth driver.

Private Debt Thirsty Insurers Driving BlackRock Earnings: Fink

Fixed-income behemoth BlackRock plans to amplify its revenue bets on the insurance industry and its demand for private credit in 2025 as assets from the sector continue to flow in.

“I do believe insurance will be one of the primary areas of growth for us,” said BlackRock CEO Laurence Fink during an earnings call on Wednesday.

BlackRock posted net income of $1.67 billion, up 21% from the same period a year earlier, while assets under management rose to a record $11.55 trillion in the fourth quarter. The firm reported $281 billion in client inflows during the quarter.

BlackRock’s 2024 acquisition of HPS Investment Partners, which manages $148 billion in private credit assets, was cited by Fink as a key driver of its increased focus on the insurance sector in the coming year.

“It has been extraordinarily positive across all the channels. HPS has incredible relationships with clients worldwide, and that dovetails with our relationships across all the insurance companies,” Fink said.

CFO Martin Small noted that BlackRock currently operates a $3 trillion fixed-income platform across active and index funds, with $700 billion managed specifically for insurance companies.

“We saw demand across iShares, non-ETF index, and active fixed income, which continues to include scaled institutional assignments as well, not just retail. This demand came primarily from our insurance partners,” Small added.

A survey published by BlackRock last year revealed that 96% of North American insurers plan to increase their allocations to private markets within the next two years.