Unlocking Performance: The Rise of Third-Party Managers in Insurer Portfolios

Unlocking Performance:
As the evolution in capital markets, regulations and stakeholder requirements increases the complexity of insurance company general account management, many insurers have reached out to third-party asset managers for help in managing their portfolios.

In the Viewpoint “Unlocking Performance: The Rise of Third-Party Managers in Insurer Portfolios,” authors Matt Reilly and Lauren Forando document the dynamics of the outsourcing market. Insurers are looking for more than competitive return streams - they want managers to provide customized strategies and unique capital-efficient structures and become true business partners. Successful programs may allow insurers to free up resources to develop other valuable business capabilities.

Through a case study, the report highlights how outside managers may be able to help insurers develop more effective investment strategies to address their unique business needs. Outside managers may also offer new investment capabilities that an insurer might not be able to develop on its own.
The Rise of Third-Party Managers in Insurer Portfolios