Tim Antonelli, CFA, CAIA, FRM, SCR, Insurance Strategist and Portfolio Manager, Wellington Management
Max Davies, CFA, CAIA Insurance Strategist, Wellington Management
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.
Key points
Before looking ahead to 2023, let’s look back for a moment. The amount of change that the world has undergone over the past few years is astounding. After a cataclysmic 2020 and a very eventful 2021, 2022 has been marked by unsettling geopolitical issues, lower (and slowing) global economic growth, rising inflation and interest rates, and monetary policy tightening in the US and elsewhere. The market-friendly “Goldilocks” market environment that characterized much of the past decade seems like a lifetime ago.
Against this still uncertain backdrop, one thing is clear: What has worked for insurance asset owners in years gone by won’t necessarily carry the day going forward. With that in mind, we would encourage you to reevaluate your investment toolkit ahead of the new year and be prepared to enter it armed with some creative, actionable ideas. Here are four that we believe may help insurers successfully navigate 2023:
- Adopt (no, embrace) a solutions-oriented mindset
- Approach illiquid allocations through a more nuanced lens
- Consider a portfolio “pivot” from growth to value equity
- Pursue environmental, social, and governance (ESG) integration 2.0
