Abstract
Investing for insurance companies in the United States and Canada is a balancing act. There are numerous restrictions on allowable investments. Portfolio yield is very important, because insurance companies are relying on the investment returns to supplement the operating income. Since the burst of the Internet bubble in 2001, the interest rates fell and stayed low for a number of years. Finding higher yielding fixed income instruments is a tough act as highly liquid instruments tend to provide lower yields than longer-duration assets in a normal interest rate environment. Too much liquidity will drag down portfolio yield.
Keywords Enterprise Risk Management
Page
52-53
Year
2008
Categories
Actuarial Applications and Methodologies
Enterprise Risk Management
Publications
Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications
