The Property & Casualty insurance industry is a diverse one, with many different liabilities and structures reflecting an array of distinct commercial and personal lines that underwrite very different kinds of risk. To structure a suitable investment portfolio for a Property & Casualty insurer, an asset manager must fully understand the various lines of business that are underwritten as well as the correlation of risks across the enterprise. Asset/liability modeling can provide a detailed overview of each company’s investment portfolio, liability structure and exposure to risks, and is a crucial first step. But the evolving complexity of these insurance entities implies that a simple total return investment strategy may not be the most appropriate for achieving the company’s long-term objectives.
Optimizing returns by combining taxable and tax-exempt assets
Because Property & Casualty companies are typically taxable, one of their main challenges is finding the right mix of taxable and tax-exempt assets to generate the optimal total return. For this market segment, we offer an industry-leading tax advantaged strategy, which opportunistically invests in a mix of taxable and tax-exempt securities to maximize after-tax yield. We customize crossover strategies with our proprietary Dynamic Tax Analysis service, a sophisticated software program that calculates the right blend of taxable and tax-exempt investments for your company’s circumstances.
Taxable-only investment strategies
We also offer a wide range of taxable strategies appropriate for this market, including core bond and structured products as well as convertible bonds, which have historically offered much of the return potential of equities, with substantially less risk.
Understanding your competitive position
If you would like more information about how your company compares to its peer group on key ratios like premium to surplus, we offer peer analysis, a customizable benchmarking program.
Integrated reporting and accounting
We understand how important reporting and accounting are to your business, and we deliver all required filings and reports to you in a timely, accurate fashion. Our accounting experts will also keep you apprised of any changes in GAAP or statutory requirements. Moreover, at AAM, accounting expertise is integral to our business, not just another department. Your portfolio management team understands the unique reporting requirements of your company and can answer your questions about the tax and accounting implications of specific investments and trades. They can help you prepare for A.M. Best ratings reviews as well as impairment discussions with auditors, ensuring that you have all the information you need to satisfy external data requirements.
Linking you to critical information
We offer our expertise to you on a one-on-one basis, at your convenience, whenever you require it. In addition, we make a wide array of written materials available to our clients, including white papers, newsletters and articles. Our Corporate Credit View provides monthly insight into the economy and the corporate bond market, while Municipal Perspectives covers the municipal arena. We also provide periodic updates on accounting and tax issues.