The eighth annual compendium of the investment management firms serving insurance companies. This primary insurance industry reference profiles insurance-focused investment managers, including featured investment strategies for insurers, profiles of clients served (by region, business lines, company size) and insurance AUM in specific strategies.
Essentially, these new factors in almost all cases are more punitive to health and P&C insurers than are the existing factors. In the following, we show a comparison of the current factors and the new factors, and provide some brief comments about how this will change the investment allocations for these insurers going forward.
Conning believes alts may offer insurers a greater menu of investment choices to help further diversify a portfolio, generate greater yield and return, and improve downside protection. We also think that, as with any investment selection, an alt must align with an insurer’s investment strategy.
Multi-Asset Insurance Strategist Tim Antonelli and Investment Strategy Analyst Daniel Cook argue that now may be an opportune time for insurers to adopt a more pro-risk stance, despite the potential headwind of rising rates.
In this video interview, Insurance Multi-Asset Strategist Tim Antonelli provides a playbook for how insurers should approach ESG. Tim offers an actionable to-do list, addresses common misconceptions, and shares forward-thinking ideas to anticipate and manage risk. Tim is interviewed by Account Manager Sarah Marschok who offers color on the investment themes she is observing in the market.
We present a 12- to 18-month outlook for alternative assets and explore the most promising investment ideas from the CEOs, CIOs and strategists of our USD 150 billion alternatives platform. We explain why alternatives are no longer optional—but essential.
When allocations to private markets were smaller, building portfolios using rules of thumb and traditional optimization techniques was acceptable, if not ideal. Today, larger and more diverse allocations require an approach that can meet the private market challenges of illiquidity, extreme dispersion of returns, scarce data and barriers to maintaining allocations at desired levels. We have developed a framework that addresses these complexities.
Proposed changes to RBC bond factors will increase required capital and decrease RBC ratios for U.S. life insurers. Many types of alternative assets will look relatively more attractive and life insurers should consider them. Furthermore, RBC covariance changes will result in a 10% to 20% decrease in post-diversification capital charges on equity-like alternatives.
Private placement securities have the potential to enhance portfolio income in a continued low-rate environment. Along with the potential yield premium, private placements are typically rated investment grade and offer stronger investor protections than are typically available on public securities with similar ratings and maturities, and may enable insurers to customize maturities to match liabilities.
As interest grows in environmental, social and governance (ESG) topics across industries and stakeholders, insurers are recognizing the need to report on progress against ESG benchmarks. This paper examines the state of ESG for insurers and the progress in establishing measurable goals
Should insurance companies be concerned that the pandemic and its aftermath will upset the benign inflation environment we have grown accustomed to?
For insurers interested in casting the net wider in the search for income, delving a little deeper into non-established parts of Structured Finance or down in the stack of established segments might have the potential to provide increased income.
Goldman Sachs Insurance Asset Management released the findings of its tenth annual global insurance report, “Running the Risks,” revealing improving economic conditions amid considerable uncertainty.
Insurers have fared relatively well through the pandemic, but there is likely a long and uneven road to recovery ahead. With this in mind, there are four key themes worth considering for insurance company investors in the months to come.
The future scenario we envision is one in which the Fed is likely on hold, with rates pinned near the zero lower bound for several years. As this “lower-for-longer” period persists, insurers are faced with the problem of continual book-yield decay and what is generally described as the difficult choice between accepting lower yields (thus lower profitability) and reaching for yield but taking on additional risk. Neither option appears particularly attractive at this point in time, making the efficient use of capital a key consideration. The specifics of the problem and potential solutions vary depending on the exact nature of the liabilities in question. Consider the following...
Our team is tactically positioned for a cyclical recovery in EM credit; however, we also feel strongly about strategic EM fixed-income opportunities that may be appropriate for our insurance clients and prospects. The type of EM allocation we are talking about goes beyond the standard ETF or “off-the-shelf” EM fund solution and speaks directly to insurance investors who have a more refined palate with regard to their income, return and capital needs.