The Long Game of Inflation – Dynamic Portfolio Strategies

The Long Game of Inflation
Inflation has eased from the four-decade highs witnessed in 2022 but remains elevated. This may force insurers to consider portfolio management strategies that can generate value during an extended period of higher inflation and higher interest rates regardless of how long conditions last.

In Conning’s latest Viewpoint, “The Long Game of Inflation – Dynamic Portfolio Strategies,” Yazeed Abu-Sa’a, a managing director in the Insurance Solutions group, illustrates methods insurers can employ to help improve investment performance should inflation and rates remain elevated. “Conning also believes applying more dynamic investment strategies may also benefit insurers over the long term for most economic conditions,” he added.

Abu-Sa’a offers examples of how investment strategies offering more flexibility than is typical of many insurers may add value. He also notes that examining portfolios from an enterprise level – focusing on metrics such as net income, operating cashflow and surplus – can further refine strategies and help companies meet their business goals.
Dynamic Portfolio Strategies