Inflation, geopolitical instability, rising interest rates and more are helping lower economic growth and raise market volatility. Insurers often look to equities to help grow their portfolios but would likely prefer an approach that features lower volatility than we are currently experiencing. A strategy focused on dividend-paying equities may be the right solution for many.
Compared to index equity strategies such as the S&P 500 Index commonly found in many insurance company portfolios, a dividend-paying equity strategy may offer insurers lower volatility, income opportunities and potential tax advantages. It may also prove to be a more effective equity strategy during a period of rising interest rates.
Donald Townswick, Director of Equity Strategies, explains the opportunities in dividend-paying equity strategies in our latest Viewpoint “Dividend Equity Strategies: Managing Higher Volatility, Rising Interest Rates and Inflation.”