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Customized Insurance Solutions
Portfolio Optimization
Achieve an optimal balance between the multiple objectives that insurance companies consider in the management of their business, including risk-adjusted after-tax returns, capital efficiency, income preferences, liquidity requirements, realized gain/loss constraints, etc.
Customized Benchmarks
Creation of benchmarks that are tailored to reflect a company's liability profile and risk preferences, as well as regulatory, rating agency, and other management considerations.
Asset Allocation
Analysis to establish long-run sector allocations that produce an appropriate risk/return profile for capital supporting a product or company.
Tail-Risk Management
Portfolios constructed to protect against downside risk in stressed economic environments.
Scenario-Based Risk Budgeting
Determine permissible active management exposures to spreads and rates versus customized benchmarks. Employs stress tests to sectors and rates to determine potential losses in well-defined stress scenarios.
Insurance Accounting
GAAP and statutory accounting capabilities and reporting services.
Asset Management Process
Execute the firm's investment strategies using an implementation process that reflects the unique profile and risk tolerance of each insurance company.
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USDE* 65.8 Billion
*US Dollar Equivalent
- Portfolio Optimization
- Customized Benchmarks
- Asset Allocation
- Tail-Risk Management
- Scenario-Based Risk Budgeting
- Insurance Accounting
- Asset Management Process
Insurance Team
Contact Us
- Full team list provided
upon request. - Louis DiFranco
Head of Insurance Services - Steven Kreider
Portfolio Manager - Carl Cohen
Client Service Executive - Willie Alford II
Marketing Executive
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Global Insurance AUM: USDE* 65.8 Billion as of March 31, 2013
*US Dollar Equivalent
*US Dollar Equivalent
December 2012
New and developing solvency regimes require insurers to embed risk analysis and solvency considerations into business decisions at all levels.
June 2012
Insurance portfolios with similar levels of spread risk can have significantly different levels of regulatory and rating agency spread-related capital requirements.
May 2012
The insurance industry continues to feel the impact of low interest rates on investment portfolio yields, product design, and reported profitability.
February 2011
Insurance industry regulation and financial reporting are undergoing significant reform. For example, the upcoming European Solvency II regulatory regime embraces a market-consistent approach to the valuation of an insurance company's balance sheet and capital position.
February 2009
Insurance portfolio management is not simply a question of earning returns on assets. It is also a crucial part of an insurer's efforts to create value for stakeholders. Consequently, portfolio strategies must incorporate a firm's liability characteristics as well as regulatory, rating agency and other considerations.
In a highly commoditized product environment, the most durable competitive advantage is a client-centric approach to solution creation, leveraging experience and expertise.
Western Asset assists clients in developing capital efficient portfolios that take into account capital requirements, as well as objectives related to risk, growth and return on equity (ROE).
From client service to portfolio management, Western Asset is dedicated to developing a consultative thought partnership and dialogue with current and prospective clients.
Building on Western Asset's proven investment philosophy, research and process, the Insurance Team adds a layer of portfolio and risk management that incorporates the unique needs of insurance companies.
Western Asset understands the complex requirements of insurance companies, including the shifting priorities driven by statutory, regulatory and actuarial analysis.
- Firm's investment strategy customized based on client's constraints and objectives
- Optimization tools to target: volatility, capital efficiency, gain/loss, and other client-specific metrics
- Sector teams inform Investment Outlook and provide sub-sector/issue selection expertise to Insurance Team
