Imagine your captive insurer’s ability to grow assets and surplus over time by affectively deploying underutilized assets. Further, visualize an opportunity to enhance the captive’s financial well-being over time, the benefits of which may flow directly to the parent organization. How might this be possible? In this guide, insurance portfolio managers Don Miller and Jeff Matthias describe a time-tested approach for steering both young and established insurance companies towards the potential for improved risk-adjusted returns with ample consideration given to an insurer’s unique situation.
The five-segment guide from Captive Review begins with an overview of how an insurer’s investable assets and surplus tend to evolve over time, often requiring a change in investment focus and expanded risk management. The next three sections explain these items in greater detail, especially the merits of a well-written investment policy statement and in what ways statutory accounting provides a decided advantage for weathering market volatility. Specific points are made about the importance of evaluating both insurance and investment risks in unison to form an enterprise-wide perspective. Moreover, there are actionable tips about how to implement an investment plan. The final segment is a case study showing how Madison Scottsdale exercises flexibility while pulling the concepts together as it addresses distinctive insurer conditions.
- Foreword
- The Insurance Infrastructure
- Growth Mentality
- The Risk Framework
- The Right Partner
- Case Study