Insurance protects your life or your assets, promotes prevention and risk management, and carries out an important social function. Did you also know that the insurance industry helps support public spending in the countries where it operates and contributes to business growth? Let’s explore the role of insurance as a leading institutional investor.

From the moment you pay the premium on your policy until that money is ultimately used to cover a benefit or a claim, that capital does not sit idle. Insurance companies invest it in public and private assets, including debt instruments and equity stakes in companies, generating employment, improving competitiveness, and fostering sustainable growth.

According to Ricardo González, Director of Analysis, Sectorial Research and Regulation at Mapfre Economics, “their long-term financing capacity, supported by diversified portfolios and solid technical reserves, positions companies in the sector as one of the main drivers of structural financing for many areas of the economy.”

Through its activity as an institutional investor, insurance not only plays an important role in economic development, it also “acts as a stabilizer by mitigating systemic risks and encouraging financial planning among individuals and companies,” adds Ricardo González. In addition, he continues, “this role contributes to the resilience of the financial system because, in contexts of global uncertainty, its ability to absorb economic shocks and redistribute risks strengthens confidence in the markets.”

Characteristics of investments

Prudence and stability are two defining features of investments in the insurance industry. These companies are subject to regulations that prevent them from engaging in high-risk operations. In Europe, for example, insurers are required to comply with the prudential framework imposed by Solvency II, which ensures certainty of coverage for policyholders and, in doing so, contributes to social welfare.

At the same time, insurance companies are increasingly integrating sustainability criteria, or ESG, into their investment strategies, channeling capital toward projects that address environmental, social, and governance challenges.

In short, the role of insurance as an institutional investor is crucial to a country’s economic stability. Its appetite for stable, solvent, and sustainable long-term investments makes this sector a first-rate agent of change that benefits society as a whole.

Fixed Income, stability for portfolios

Insurance companies invest in a wide range of assets and tend to maintain their portfolios with relatively few changes. Fixed income continues to account for the largest share in many markets. According to the latest data from Mapfre Economics, in Spain this asset class represents 72.8%, a figure well above the eurozone average of 49.2% and that of the United States at 60.9%. In markets such as Mexico, however, the ratio is even higher, at 79.6%.

The choice among different types of fixed income depends on the company’s risk profile and its specific investment objectives. In the Spanish market specifically, 51.6% corresponds to sovereign debt and 21.2% to corporate debt, a large portion of which is concentrated in companies with high credit ratings. This helps ensure insurers’ ability to meet claims and other long-term obligations.

Developments in other assets

Although fixed income remains the fundamental pillar, insurance companies are exploring new opportunities and adjusting their portfolios to adapt to changing market conditions, with the aim of generating steady and sustainable returns to meet their commitments.

As a result, since 2019 they have begun to increase their allocation to equities, mainly in Europe, as a way to diversify and seek returns in an environment of higher interest rates. In Spain, this trend has been more moderate. Equities account for 7.2% of Spanish insurers’ portfolios, compared with 18.6% in the eurozone.

There are also marked differences in other asset classes. According to Mapfre Economics data, in the Spanish market investment funds account for a 12.1% share, deposits and cash for 5.1%, and real estate for 3.6%. In the eurozone, the figures are 20.5% for investment funds, 2% for deposits and cash, and 1.5% for real estate.

Looking ahead, private markets appear to be in focus in 2025. BlackRock’s 14th Annual Global Insurance Survey estimates that around 30% of global insurers plan to increase their investments in these markets, despite maintaining a “low” risk profile, as only 12% expect to increase their overall investment risk exposure in the current year.  

Investments in our group

Through a stable flow of resources, the insurance industry contributes to the financing of long-term projects that drive economic growth and supports the stability of the financial system during times of crisis.

As of September 2025, the Mapfre Group’s investment portfolio stood at €47.468 billion, representing growth of 3.8% compared with the previous period. Fixed income, with a volume of €33.111 billion and an 83.1% share, was the most significant asset class, followed by equities and funds at 8.9%, cash at 4.1%, and real estate at 3.9%.

Within fixed income, government debt totaled €23.004 billion, distributed among Spain at €9.489 billion, the rest of Europe at €4.597 billion, the United States at €1.719 billion, Brazil at €2.938 billion, other Latin American countries at €3.506 billion, and other markets at €755 million. Corporate debt amounted to €10.107 billion.

In addition, at Mapfre we make significant alternative investments, such as private debt, investments in high-growth companies, commonly known as venture capital, infrastructure, and renewable energy projects, including photovoltaic, wind, and biomethane plants. Most of these investments are channeled through investment funds.

We apply a prudent investment policy, prioritizing fixed income as outlined above, to contribute to the development of the countries where we operate and where we have adopted a sustainable approach. By identifying and investing in entities that demonstrate a strong commitment to environmental, social, and governance principles, we also aim to act as a catalyst for long-term social well-being.