Everybody is talking about DEI&B and how this fits into the insurance asset management industry. Sarah Marshock (Wellington Management) facilitates today's discussion of DEI&B with Margaret Milkint (Diversified Search Group), Grace Reyes (TIDE), Laura Beebe (Farm Bureau Financial Services), and Gia Clarke (Insurance AUM Journal).
This paper, a collaboration between Willis Towers Watson and Wellington Management, is intended to be a pragmatic guide for insurers and reinsurers as they steer their organizations on the journey to net zero.
The office sector faces unique challenges during the coming decade. In this special report, Indraneel Karlekar, Ph.D. - Senior Managing Director, Global Research & Strategy and Arthur Jones - Director Real Estate Research from Principal Real Estate Investors examine the return to a new normal for the office property type and what it means for real estate investors going forward.
It’s easy to understand Elon Musk’s fascination with Nikola Tesla, the inventor of the alternating current (AC) technology that serves as the backbone of the company’s electric vehicles. Talking to Collier’s magazine back in 1926, in the midst of what came to be known as the Roaring Twenties, Tesla essentially predicted the wireless age, stating: “When wireless is perfectly applied the whole earth will be converted into a huge brain, which in fact it is, all things being particles of a real and rhythmic whole. We shall be able to communicate with one another instantly, irrespective of distance.”
In late May, the NAIC’s Life Risk Based Capital (RBC) Working Group approved a proposal to reduce capital charges for real estate equity investments. Whereas RBC charges were previously 15% for direct investments on Schedule A and 23% for Schedule BA investments, the newly adopted charges will be 11% and 13%, respectively. This is a significant benefit for life insurers for multiple reasons.
The NAIC approved updates to risk-based capital (RBC) bond and real estate equity factors for U.S. life insurance companies; we examine the changes from the prior RBC regime, as well as the implications on relative value considerations and life insurers’ strategic and tactical asset allocation.
The market conditions triggered by the COVID-19 pandemic are shifting the way fixed income investors need to think about managing and mitigating credit risk. Insurance companies will need to identify new opportunities across the full spectrum of public and private investments in order to meet their yield objectives. Join us as we discuss how to position your portfolio to take advantage of these new dynamics in credit risk management.
As Covid-19 restrictions ease and the global economy begins to reopen, the current state of the high-yield market is in a unique position. Top of mind issues for credit investors now include rising rates and inflation, challenges that have been dormant for years.
As the global economy continues to recover, an accommodative Federal Reserve (Fed) and stimulative fiscal policy have pushed inflation concerns to center stage. By some measures, inflation is at its highest in over a decade, and several factors could sustain these levels. Conversely, other metrics point to a more benign environment, and suggest the recent increase may be “transitory.” While we do not predict the future, we believe overall inflation risks are elevated, particularly given current spreads and valuations. In this piece, we focus on key inflation metrics and the potential impact of inflation on the insurance industry.