Insurance Companies

Insurance Companies - Articles & White Papers

Institutional research and reports covering issues around the asset management needs of insurers. The best white papers on insurance asset management, global insurance and health insurance portfolios can be found in this section of the Savvy Investor site. We particularly recommend a comprehensive paper from Patpatia & Associates on this topic. Articles and surveys cover topics such as Solvency II, strategic asset allocation, life insurers and comprehensive asset liability management (CALM). Other interest areas include research on liquid assets, hiring asset managers, cash flow risk management, dynamic factor modelling, and fixed indexed annuities. The growing role of alternative investments in insurance asset management is also examined in this section.
  • Insurance Asset Management - a comprehensive guide

    This excellent 120 page report from Patpatia & Associates provides a comprehensive guide to investment practices and policies within US and global insurance asset management. The document analyses the variations in strategy for different business lines, such as life & annuity business, property & casualty, and health insurers. It also considers investment strategies in ...

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  • Spence Johnson

    A Paradigm Shift in Insurance Asset Management (Spence Johnson, 2017)

    In the past, asset managers may have seen selling to insurers as pitching a range of products. In reality, due to the particular demands of insurers, outsourcing is an opportunity for asset managers to be active and help create a bespoke solution, unique to the issues faced by each insurer. In this nine-page document, the authors explain that insurers’ investment decisions ...

  • HIMCO (Hartford Financial)

    Five Questions Insurers Should Ask When Hiring Asset Managers

    In this 2014 paper, the authors have compiled a list of five key questions insurers should consider in determining if an asset manager fully appreciates the demands of serving an insurance client. While a manager’s history of strong investment performance and broad array of investment skills may deserve consideration, is the manager fully versed in the often complex ...

  • State Street Corporation

    Growth Readiness for Insurers: Capturing Opportunity through Technology (State Street)

    What strategies should insurance institutions employ to grow both their investments and their customer base? This report argues that insurers need to reprogram their operating models for a new kind of growth, and they must embrace advanced technologies to make it happen. In an environment of regulatory complexity, demographic shifts and digital advances, the report sets out three ...

  • Invesco (Europe)

    Sub-investment grade opportunities for insurers: Senior secured loans (Invesco, 2017)

    With the introduction of Solvency II at the start of 2016, and with interest rates continuing to remain at historically low levels, insurers are increasingly looking for ways to deliver attractive risk-adjusted returns that are efficient from a capital perspective. Many are looking beyond traditional asset classes, be that investing in illiquid forms of private credit, diversifying ...

  • PricewaterhouseCoopers

    Insurance Investment Management: A fit-for-growth approach to grow profitably (PwC, 2016)

    Since the global financial crisis, midsized insurance investment managers (IIMs) - those with US$100-500 billion AUM - have struggled to increase revenues, even as margins have declined. Their performance is in stark contrast to that of large and small insurance investment managers, which have seen annual net income growth of more than 20 pc, as a result of scale and expertise. To ...

  • Natixis Global Asset Management

    2015 Insurance Industry Survey (Natixis)

    A number of significant changes are afoot in the insurance industry - investment and regulatory pressures, challenges to the portfolio construction process, and more. This survey by Natixis Global Asset Management provides insights into what key decision makers think will ensure success in this new market reality.

  • Standard Life Investments

    Solvency II and Absolute Return Investing (Standard Life, 2016)

    In this paper, the authors examine the implications the Solvency II "look-through" principle has for calculating solvency capital needs. The principle assesses the individual investments held in a fund and their true risk characteristics. The authors highlight how it may change the way various asset classes are viewed by insurers, among other issues.

  • Strategic Allocation to Less Liquid Assets

    • 10 Mar 2015
    • Posted by: , Head of Strategic Asset Allocation

    The authors of this paper propose a model by which investors can be helped to address liquidity questions when engaging in strategic asset allocation decisions. They consider both market liquidity and funding liquidity, as well as liquidity risk and return. Their framework is helpful for liability-driven investors, in particular, who have a comparative advantage when investing in ...

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  • Society of Actuaries

    Letting Insurance Asset Data Speak for Itself – Asset Allocations of Life Insurers in Asia (SOA, 2018)

    This paper seeks to explain high-level trends in asset allocation of major life insurers across eight Asian markets (China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, Thailand) over the last four years to 2015, using data collected from various regulatory and audited sources, enriched with subjective commentaries from market participants. This research aims to ...

  • KKR

    Outlook for Insurance Investors: New World Order (KKR, Apr 2018)

    • 26 Apr 2018
    • Company: KKR

    Without question, the multi-year decline in interest rates since the Global Financial Crisis has had a profound effect on the insurance business. Importantly, it comes at a time when the investment part of the insurance business is now often taking on more responsibility for driving profitability than the traditional underwriting function. Given this backdrop, getting asset ...

  • State Street Corporation

    The State Street Growth Readiness Indicator (2017)

    State Street’s Growth Readiness Indicators enable you to assess your objectives, capabilities and strategies for growth against your peers. Using data from State Street’s 2017 survey of more than 500 asset managers, asset owners and insurers, the tool allows users to create a peer group from respondents to the research, and see how their attitudes and approaches to long ...

  • AXA Investment Managers

    Insurer Survey 2017: Navigating 'Normalised Uncertainty' (AXA IM, June 2017)

    The challenges facing insurers are well known. The prolonged period of low interest rates, changing demographics and heightened geopolitical risk, coupled with new layers of regulatory constraints, have made successful investing ever more difficult. Divided into four sections, the AXA IM 2017 Insurer Survey seeks to investigate the ways in which insurers are adapting to the ...

  • Weiss Multi-Strategy Advisers LLC

    Enterprise Driven Investing for Insurance Companies: The Hot Mess – and Future – of Asset Management

    This article is focused on the enterprise aspects of EDI. EDI principles are agnostic to the selection of underlying models and adoption of emerging financial theories, but EDI's success is not. New developments are raising fundamental questions with all investors. These questions and their linkage to EDI are discussed in this publication.

  • Robeco

    Conservative investing in a solvency framework (Robeco, 2017)

    Conservative investing in a solvency framework

    Are conservative credit and equity strategies attractive under solvency regulations? Conservative credits require less solvency capital than credits with average or high risk, which makes them attractive. Conservative equities, however, require the same solvency capital as equities with average or high risk. Investors therefore ...

  • Northern Trust

    Cash: An Asset Adolescence (Northern Trust, 2017)

    If the investment industry has a rebellious teenager in the house today, that teenager would be cash: it costs you more, is more challenging and offers little in return. This Northern Trust paper explores what can be done to overcoming the liquidity conundrum.

  • Society of Actuaries

    Economic Capital for Life Insurance Companies (Society Of Actuaries, 2016)

    This paper aims to address key questions on the calculation of economic capital for long-term life insurers. It discusses the drivers of economic capital, the development of an internal EC framework and the uses of EC within an insurance company. It concentrates on the features that make long term life insurance business unique within the financial landscape.