OLDWICK, N.J.--(BUSINESS WIRE)--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.
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