A.M. BestTV: U.S. Insurers Scale Back Hedge Fund Investments, Say A.M. Best Analysts

OLDWICK, N.J.--()--In this A.M.BestTV episode, A.M. Best Senior Industry Analyst Jason Hopper and Associate Analyst Dan Heitlinger, discuss a special report that shows how insurers are scaling back their exposure to hedge funds. Click on http://www.ambest.com/v.asp?v=hedgefunds517 to view the entire program.

“In 2016, there was a fairly substantial pullback of almost 30% throughout the entire insurance industry,” said Hopper. “Furthermore, about two-thirds (or 65%) of life/annuity, and 60% of property/casualty (P/C) insurers have pulled back their investments in hedge funds. Earnings investment volatility seems to be the real driver of this widespread pullback.”

Heitlinger noted that hedge fund holdings were a small percentage of insurers’ overall invested assets. “In 2016, hedge fund holdings accounted for approximately 0.50% of total invested assets in the life/health industry and approximately 0.25% of total invested assets in the P/C industry.”

To access a copy of this Best’s Special Report, titled, “Insurers Continued to Pull Away From Hedge Funds in 2016,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=261549.

Recent episodes of A.M.BestTV include:

  • Risk, Not Rules, Becoming Driver of Asian Regulation, Says Megrow Pte Managing Director: Reto Brosi, managing director, Megrow Pte Ltd., explores issues surrounding the move toward risk-based capital regulatory structures in Asian countries such as Singapore, the Philippines, Thailand and China: http://www.ambest.com/v.asp?v=brosi517.
  • Inland Marine Sector Looks to Training, Digital, Automation and Fresh Workforce: At the Inland Marine Underwriters Association Conference leaders in the sector said they are expecting a new wave of younger workers, advancing technology and a greater reliance on automation and artificial intelligence, which will remake the industry: http://www.ambest.com/v.asp?v=imua2517nc.
  • Insurers See Profitable But Shifting Program Sector: Attendees at the Target Markets Program Administrators Association's 2017 Mid-Year Meeting said the sector remains profitable and attractive, and opportunities are emerging as program managers shift carrier relationships: http://www.ambest.com/v.asp?v=tmpaa517.
  • Analytics: Cyber Threats Gain in Strength: A.M. Best Senior Financial Analyst Fred Eslami discusses the implications of the recent WannaCry ransomware attack and what it means for insurers going forward: http://www.ambest.com/v.asp?v=ransomware517.
  • 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 © 2017 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