Process
Key features of our process are based on the following:
- Allocation of the client's risk budget across Liquidity, Reserve and Surplus portfolio components managing each to its discrete objectives and constraints
- Investment managers that can complement demonstrated insurance expertise with institutional–grade analytics (modern portfolio theory (MPT) statistics for risk adjusted, after-tax performance evaluations)
- Utilization of Asset Liability Management (ALM) techniques to correlate the portfolio structure with the insurers liabilities (reserve portfolio is structured around anticipated cash flows and claims payout patterns to ensure sufficient liquidity and often involves duration matching to provide interest rate risk protection)
