Insurance Asset Tracker reports

Insurance Asset Tracker reports set a new standard for detail and perspective on insurance asset outsourcing practices and trends.

What are trends in outsourcing specific to asset class and investment style? How frequently are support services (investment accounting, rating agency assistance, etc.) provided by third party investment managers? Which investment managers are hired most often in specific types of investment roles and services? Which consultant firms are involved in manager selection?

These questions are answered in periodic reports using the Exchange’s Insurance Asset Tracker database. The reports are based upon an analysis of mandates outsourced to third party investment managers and reported by insurance companies and investment managers to the Insurance Asset Tracker database.

Investment goals and practices

How prevalent are total return versus book value yield investment goals? How are those goals pursued? Are investment strategies more often buy and hold, unconstrained active management or some point in between? What are typical investment guidelines? What tax-sensitive investment practices are most often used? Do the stereotypes attributed to property/casualty versus life/health companies hold up? Exchange participants can answer these questions through Eager, Davis & Holmes’ Investment Goals and Strategies report. Based upon 2006 data, to be updated in 2009.

Outsourcing practices

What types of mandates (core active fixed income, buy and hold fixed income, high yield, municipal bonds, senior secured bank loans, global equity, etc.) do insurance companies outsource to third party investment managers most often? Which mandates will most often be outsourced over the next two years? How many different investment management firms are used? How prevalent is the one manager, “total investment outsourcing” model, and will it gain popularity? How do answers to these questions differ according to business lines and insurance company size? Exchange participants can answer these questions through Eager, Davis & Holmes’ Outsourcing Practices report, based upon 2008 data and available in November 2008.

Manager selection and evaluation practices

Which databases do insurance companies use to evaluate candidate investment managers and how useful are they? Do they use consultants and if so, which firms? What criteria are used to choose one firm over others? Is performance evaluated on a pre-tax or after-tax basis, and versus a standard market index, customized index or universe of insurance portfolios? How is risk measured? How do answers to these questions differ according to insurance companies’ investment goals, business lines and company size? Exchange participants can answer these questions through Eager, Davis & Holmes’ Manager Selection and Evaluation Practices report, based upon 2006 and 2008 data.

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