INSURANCE COMPANIES

INSURANCE COMPANIES

A contract in which an individual or entity receives financial protection against losses. Insurance companies receive premiums and must invest these premiums in order to cover potential liabilities.

 

Insurance companies often invest in fixed income but have increased exposure to alternative asset classes due to the low rate environment.

TYPES OF INSURANCE COMPANIES

Accident and Health

Life Insurance

Property and Casualty

Reinsurance

MAJOR CONSIDERATIONS

  • Prefer larger established GPs

  • Often make fewer but larger investment commitments

  • Prefer stable returns and liquidity

  • Can be a source for patient long-term capital

  • Can be sensitive to fees

THE GROWING ROLE OF ALTERNATIVE INVESTMENTS IN INSURANCE; Hedge Fund Journal

https://thehedgefundjournal.com/the-growing-role-of-alternative-investments-in-insurance/

LARGEST PENSION PLANS​

  1. Prudential Financial, New Jersey; AUM – 1.5T

  2. Ping An Insurance Group, China; AUM – 1.1T

  3. Allianz Group, Germany; AUM – 1.1T

  4. Nippon Life Insurance, Japan; AUM – 751Bn

  5. Japan Post Insurance, Japan; AUM – 700Bn

  6. Assicurazioni Generali, Italy; AUM – 700Bn

  7. Nippon Life Global Investors America, New York; AUM – 613BN

  8. Aviva Life and Pensions, UK; AUM – 604Bn

  9. Generali Group, Italy; AUM – 583Bn

  10. New York Life Insurance, New York; AUM – 550Bn

PreQin 2020

 

THE LARGEST RETIREMENT FUNDS; Pensions and Investments

https://www.pionline.com/assets/docs/CO119162327.PDF

ARTICLES OF INTEREST

INSURERS FORCED TO EXPAND THEIR HORIZONS; Pension and Investments

https://www.pionline.com/article/20190527/PRINT/190529906/insurers-forced-to-expand-their-horizons

 

INSURERS LOOK BEYOND THE FIXED INCOME HORIZON FOR YIELD; Institutional Investor

https://www.institutionalinvestor.com/article/b1d7c7zh7bpzfs/insurers-look-beyond-the-fixed-income-horizon-for-yield