A.M. BestTV: Exchange Traded Funds Take Growing Share of Insurers’ Assets

OLDWICK, N.J.--()--In this A.M.BestTV episode, investment experts discuss the reasons behind the growth of Exchange Traded Funds (ETF) as part of insurers' assets and how different sectors of the insurance industry are using them. Click on http://www.ambest.com/v.asp?v=etf1216 to view the entire program.

The use of ETFs in insurance portfolios is small by percentage, but growing, and the number of insurers that are using them is significant.

“About 800 insurance companies are currently using ETFs, across about 600 different ETFs,” said Stewart Foley, partner, insurance, AUM. “I believe the takeaway there is the broad and prolific use of ETFs.” Additionally, Foley sees about two-thirds of property/casualty and life/health companies using ETFs.

Michael Cafiero, director, ETF Trading, Cantor Fitzgerald & Co., highlighted how property/casualty and life/health companies use ETFs differently.

“Property/casualty companies use ETFs across the whole spectrum, particularly in equity and fixed income,” said Cafiero. “Life insurers are trafficking ETFs, particularly around credit space, as they are having issues getting the exposure that they need and ETFs give them easy cheap liquidity.”

To view the complete webinar, titled, “What Insurers Should Know About ETFs and Issuers,” visit http://www.ambest.com.

Other people that appear in this episode:

  • Joshua Penzner, managing director, BlackRock.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, +1 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com