Income Research + Management

"Modest inflation, whether sustained or transitory, presents both near-term risks and longer-term opportunities for the insurance sector, particularly for Property and Casualty (P&C) and health insurers. Near term, inflation has the potential to pressure the cost of claims and bond prices, as inflation picks up, but investment income has not yet accelerated to keep pace."

SAA

Given the outlook of steady, low “nominal” yields, how might your organization’s excess portfolio liquidity be utilized more efficiently for increasing yield? It may be time for for a consideration of new asset classes takes time and thoughtful Board education. Smaller organizations now have access to more yield-oriented risk asset classes that may have a role in your organization’s overall asset allocation.

AAM - Insurance Investment Management

"his is a challenging time for risk pools. Top of mind for most pools is the hardening reinsurance market in which even pools with property exposures that were not directly impacted by storms in recent years are seeing dramatic reinsurance rate increases."

NAIC

"The number of private equity (PE)-owned U.S. insurers identified by the NAIC Capital Markets Bureau totaled 117 at year-end 2020; total cash and invested assets for these insurers was approximately $487 billion in book/adjusted carrying value (BACV). The majority of PE-owned U.S. insurers were life companies."

NAIC

"CRE CLOs are CLOs that are collateralized by CRE loans that are transitional,or short-term and floating rate. Income earned on the underlying CRE loans—i.e., principal and interest payments—is utilized to make debt service payments to noteholders. Due in part to the strong U.S. economy and investor appetite for higher yields, the CRE CLO market experienced substantial growth in 2019.Some sources cite the first CRE CLOs having been issued around 2012 or 2013."