Infrastructure investing
Infrastructure investing

Building a case for infrastructure in insurance portfolios

In this paper, BlackRock offers a definition of infrastructure investing, including a spectrum of risk and reward, the current macro environment, considerations for insurance investors and investment vehicles to access opportunities.

Key points


Growing opportunities

Opportunities for private investors are growing within infrastructure as additional investment is needed to maintain the quality of current infrastructure and to meet future societal needs.


A world in transition

As the world shifts to a sustainable economy, infrastructure investing is expected to allow investors to achieve long-term, durable profits.


The key to access

Insurers can access infrastructure through a variety of investment vehicles. The key is to choose the approach that fits the insurer’s unique investment objectives and risk appetite.

Below is an excerpt from the full report on infrastructure investing for insurers.

What is infrastructure?

Despite being integral for a well-functioning society, infrastructure as an asset class is still widely misunderstood and has no concrete definition. At BlackRock, we take a characteristics-based approach to define infrastructure that considers real assets essential to the basic and physical systems of an economy or a nation. We generally seek to finance long-lived, capital-intensive assets that are necessary for economic development of society. These assets typically operate in industries with high barriers to entry and have predictable long-term cash flows for investors through long-term contracts, regulation, or strong underlying demand characteristics.

Examples of infrastructure assets

Infrastructure Type



Sports facilities



Fiber optic cables
Water management


Toll roads
Parking space


Power generation
Upstream, Midstream, and Downstream 

Infrastructure investments and insurers make a good fit

Infrastructure investing is gaining traction thanks to technological advances, policy encouragement, and the immense opportunities for sustainable infrastructure improvements.

For example, the Inflation Reduction Act (IRA), which passed in 2022, is the biggest commitment ever made by the U.S. to reduce carbon emissions and advance sustainable technology. The law has the potential to create a virtuous cycle across many industries, bringing down costs and increasing demand – effectively increasing the market for renewable investments. Insurers are positioned to be key beneficiaries of the Act through their long-standing, strategic asset allocation to the infrastructure asset class.

There are many benefits to investing in infrastructure for insurers, from environmental, social, and governance (ESG) considerations and capital considerations to diversification and hedging inflation.

Quotation start

Investing in infrastructure can help insurers build more resilient and higher yielding portfolios in a risk-aware manner while also giving them the opportunity to directly contribute to a better and more sustainable future.

Ann Bryant
Ann Bryant
Head of Insurance Solutions for North America at BlackRock

For insurers who are interested in investing in infrastructure, there are a variety of investment vehicles to access the asset, including investment grade debt, high yield debt, core equity, core-plus equity, value-add equity, and opportunistic investments. Infrastructure investing strategies differ widely depending on the investor’s return and risk preferences.

Download BlackRock’s whitepaper, Infrastructure investing: Building a case for infrastructure in insurance portfolios to learn the full benefits of incorporating infrastructure into insurance investment portfolios, the different investment strategies currently available in the market, and how to access them.

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