Sat, Dec 3, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Insurance industry investments in hedge funds continued to increase over last two years but reverse over last quarters

Wednesday, November 09, 2016

Komfie Manalo, Opalesque Asia:

A special report by insurance ratings firm A.M. Best starts out with the known premise that insurers have limited choices for investing new dollars from maturing securities and new business premiums to maintain targeted risk-adjusted returns without a meaningful increase in interest rates.

The report titled, "A.M. Best Hedge Fund Performance Has Insurers Reducing Exposure," pointed out that with interest rates remaining persistently low, NAIC Schedule BA assets, which include alternative investment securities, have generally provided insurers with the potential for higher risk-adjusted returns to help mitigate the decline in higher portfolio book yields. This industry trend toward modestly higher allocations to non-traditional asset classes is likely to continue.

Despite some public pullbacks by large life insurers, total insurance industry investments in hedge funds have continued to increase over the last two years. Hedge fund holdings within the life/annuity (L/A) segment have grown from $11.4bn in 2013 to $14.2bn in 2015, while the property/casualty (P/C) segment has increased its holdings from $8.9bn to $10.2bn. In light of these trends, L/A asset allocations to hedge funds have increased from 7.6% to 8.5% between 2013 and 2015—the ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Marks delves into what really matters[more]

    B. G., Opalesque Geneva: Howard Marks, co-founder and co-chairman of Oaktree Capital Management, weighs what should and should not matter for investors in his latest memo last week. Among the things t

  2. Legal: British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m, DOL slams lawsuit seeking to overturn crypto guidance[more]

    British fund manager Jeremy Leach and his firms settle fraud litigation for $11.5m From Offshore Alert: Four days before a trial was due to start in the Cayman Islands, British fund manager Jeremy Leach and eight of his firms settled a fraud complaint by agreeing to pay $11.5 million o

  3. Family offices upbeat on private assets, reduce public assets exposure[more]

    Laxman Pai, Opalesque Asia: Family offices are investing more in private assets and cutting back on investments in public markets, with higher risk-adjusted returns cited as the main driver, said a study. According to the survey findings by German digital private equity firm Moonfare, and the

  4. Opalesque Exclusive: A Swiss managed futures strategy that can offer diversification to any portfolio[more]

    B. G., Opalesque Geneva for New Managers: TARO (R) Diversified is a Swiss algorithmic and systematic investment strategy that offers diversification benefits to almost any professionally managed portfolio through it

  5. Alts manager Medalist Partners acquires a minority stake in Semper Capital to tap opportunities in structured credit[more]

    Laxman Pai, Opalesque Asia: Medalist Partners, which specializes in private credit, has acquired a minority stake in Semper Capital to extend its offerings to the mass market. Medalist currently manages approximately $2.2 billion in assets across strategies in asset-based private credit, struc