Insurance Investment Consulting > Process
Properly navigating through volatile and uncertain markets requires experienced knowledge and understanding of all aspects of an insurance company's detailed current and future plans for its assets. In reviewing the assets of your company, we aim to make recommendations that positively impact net investment income and portfolio book yield based on our extensive experience in working with insurance investments.
Typically an investment consultant provides information on asset mix, methods for improving return, and reducing risk as it pertains to total return.
Our focus is on your company's specific investment needs. We consider asset mix and risk as it pertains to:
- Capital and surplus
- Liabilities
- Yield
- Net investment income
- Reserves such as IMR/AVR (if applicable)
Appropriate allocations to single issues should be determined considering the ability for reserves to buffer capital in the event of a credit issue. Historically, insurance companies that have not considered this have been the ones in trouble during times of economic crisis.
Investment decisions based on total return alone can negatively impact the statutory reports, especially book yield and the IMR/AVR reserve (if applicable). Total return is only one of the many competing factors that must be considered for an insurer.
Our use of Tillinghast Actuarial Software™ (TAS) and iWorks Investments (Enterprise Portfolio System or 'EPS') combined with our insurance investment knowledge allows for a consulting process that is uniquely yours, and based on your company's needs.
