Insurance Asset Management - Customized Solutions
- Investment strategies are customized based on clients’ unique objectives and constraints.
- Robust optimization tools target client-specific metrics (e.g., volatility, capital efficiency, yield, liability hedging and gain/loss budgets).
- Sector teams actively contribute to clients’ individual investment outlooks and provide sub-sector/issue selection expertise to the Insurance Team.
Western Asset has regulatory expertise in several regulatory regimes, including:
- Solvency II
- Life and General Insurance Capital (LAGIC)
- US National Association of Insurance Commissioners (NAIC) Risk-Based Capital
- Basel III
- S&P Risk-Based Insurance Capital Model
- Singapore Risk-Based Capital II
- China C-ROSS and Hong Kong Risk-Based Capital
- Swiss Solvency Test (SST)
- Canada: Life Insurance Capital Adequacy Test (LICAT for life insurers) and Minimum Capital Test (MCT for P&C insurers)
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, underwriting and regulatory 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, statutory and IFRS accounting and reporting capabilities in partnership with Clearwater Analytics.
Insurance Case Studies
Case Study 1: Solvency II Expertise Benefits Multinational InsurerCase Study 2: A Capital Efficient Solution for BOLI Assets
Our Insurance Team
Frank Beardsley
Head of Insurance
Andrew Masalin
Client Service Executive
Paul Schroeder
Client Service Executive
Alex To
Client Service Executive