Insurance portfolios are not regular portfolios. They are tied to liabilities, claims, surplus, regulation, accounting treatment, liquidity needs, rating agency considerations, underwriting cycles, and long-term financial strength. The bottom line is that insurance companies need specialized investment management, not generic institutional portfolio strategy.

Managing insurance portfolios

Because managing an insured’s portfolio is unique, it changes the job. A generic institutional investment approach may miss what makes insurance companies different. For insurers, they don’t need the best investment, they need the right investment for long-term sustainability. Given its obligations, that right investment requires a specialized lens.

Investment portfolio performance drives insurer profitability. This is common to all insurers and yet no two insurers pursue the same business plan. Markets and product offerings differentiate competitors whether down the street or across the country. It follows that no two insurers can thrive on the same portfolio structure or have the same tolerance for risk. Portfolio metrics and performance measures tell a story against the background of a market index but this doesn’t consistently translate to the bottom line – the index against which management and directors are measured.

AQS Asset Management, LLC.

Every insurance company is unique; shouldn’t your portfolio manager leverage that to your advantage? We have built our reputation navigating the complex dynamic required for you to remain a steadfast, reliable name for your clients. With 50+ years of combined insurance investment expertise, our portfolio managers collaborate with management to optimize your company’s investment strategy. We help insurance companies build and manage investment portfolios around the realities of their business: liabilities, liquidity needs, regulatory requirements, surplus objectives, product design, and financial performance. For insurers, portfolio management is not just about beating an index. It is about supporting the balance sheet, protecting policyholder obligations, managing risk, and giving leadership better information for better decisions. “Success By Design” is the foundation of our approach. Insurance companies operate with unique responsibilities. Their portfolios should be managed that way.