commentary

Understanding the Complexities of Insurance Investment Management

Just as with individual investors, pension plans, non-profits and other institutions, insurance companies turn to the capital markets to pursue and secure their future financial stability and viability.

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Monthly Market Update - April 2024

A strong and broad stock market in March added up to one of the best first quarter returns of the past decade, with the S&P 500 Index advancing 3.2% for the month and 10.6% for the quarter. The S&P 500 set numerous new closing highs, including one on the final trading day of March. This rally was largely a continuation of the bull market of 2023, driven by a stronger-than-expected economy, solid corporate earnings, expectations of Federal Reserve easing, and moderated, if somewhat sticky, inflation.

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Monthly Market Update - March 2024

The S&P 500 Index rose 5.2% in February, hitting a new all-time high, with a year-to-date increase of 7.1%. The tech-heavy NASDAQ also hit a new high. So far this year, the “Magnificent Seven,” which powered index returns in 2023, has lost some luster, although market advances continue to be fueled by a small number of technology-centric stocks. Meanwhile, the broader market has shown improved strength.

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2023 Year-End U.S. Equity Letter from Haruki Toyama

The U.S. stock market had a good year in 2023. The S&P 500 Index recovered all of its 2022 decline, and slightly more, ending the year up 26.3%. The story of the year was the glaring concentration of returns in the Magnificent Seven, as the press has dubbed them. These seven megacap technology stocks returned an average of 111.7% for the year, accounting for well over half of the total return of the S&P 500.

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Q4 2023 Market & Economic Review

Download our quarterly communication with market and economics charts, and commentary on events of the previous quarter.

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Q3 2023 Market & Economic Review

Download our quarterly communication with market and economics charts, and commentary on events of the previous quarter.

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2023 Mid-Year U.S. Equity Letter from Haruki Toyama

We are halfway through 2023, and so far the U.S. stock market has continued its rebound from last year’s decline. The S&P 500 Index remains about 5% below its peak reached in January of 2022, so it hasn’t quite yet recovered all of its lost value, but as usual, the market averages don’t always tell the whole story.

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NAIC's Statutory Accounting Changes for 2024 and 2025

At its 2023 Summer and Fall National Meetings, the National Association of Insurance Commissioners (NAIC) Statutory Accounting Principles (E) Working Group (SAP WG) adopted major investment-related initiatives that will impact U.S. insurers. We outline what we believe to be the most relevant to insurance company investment portfolios, including major reporting changes for structured debt securities.

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“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

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